Both Cardano vs Solana is trying to offer a better solution than Ethereum. They’re both extremely fast, but which one is more scalable?
In cryptocurrencies, two platforms have been competing for the top spot. They are both open-source blockchains that aim to provide scalability, security, and interoperability. Cardano is a project that started in 2015, while Solana was created in 2017. Both have their native tokens, ADA vs Solana, respectively. This article will compare these two projects and see which one is better.
Solana is an open-source blockchain network with SOL as its native cryptocurrency token that enables the deployment of Decentralized applications and the execution of smart contracts. A group of computer programmers led by Anatoly Yakovenko developed the Solana network in March 2020.
Concerning SOL tokenomics, there is no data on the maximum supply of SOL tokens, although around 489 million SOL tokens were issued into circulation; nonetheless, approximately 260 million have entered the market.
Cardano may have been the first to create a proof of stake system, but the Solana network modified its blockchain to include the first-ever proof of History (PoH) alongside the popular PoS.
Solana entered the crypto market with a proposal to tackle the scalability, transaction speed, and low transaction cost issues that Ethereum and Bitcoin were experiencing.
Yakovenko addressed these issues by inventing PoH, allowing to handle over 50,000 Solana TPS with negligible fees, compared to 250 and 15 TPS on the Cardano and Ethereum networks.
Along with historical evidence, Proof of Stake shortened the time it took validators to complete a transaction. Essentially, it reduces the PoS effort by incorporating time into the blockchain. This is known as time stamping, which alerts the network to the chronology and order of occurrence on the Solana blockchain.
Traditional institutions have commended the Solana network’s rapid transaction speed; in January 2023, Bank of America told customers that Solana might become the VISA of digital assets.
Read more: TOP Solana Projects To Know In 2023: DeFi, P2P, NFTs, Metaverse
What is Cardano?
Cardano is one of the most successful cryptocurrency projects implementing proof-of-stake (PoS) validation algorithms. Cardano is a blockchain network that powers the ADA native token. ADA is also one of the finest coins to purchase in 2023.
The crypto project was launched in 2017 by well-known individuals in the crypto world, Charles Hoskinson and Jerry Wood – both were co-founders of the Ethereum network but departed due to disagreements over how to carry the firm forward.
Because of its distinctiveness among cryptocurrency tokens and currencies, Cardano is a good comparison to Solana. The Cardano network has a secure, two-layered design that enables transaction processing and smart contract deployment, maximizing its potential interoperability.
unlikely Proof of Work, Ouroboros Proof of Stake, its validation technique, delegates validation capabilities to ADA holders, who are rewarded for delegating their tokens to the validation network.
ADA, the native cryptocurrency on the Cardano network, has a restricted quantity of about 45 billion tokens, with approximately 33.5 billion ADA tokens now in circulation. ADA is ranked seventh out of the top seven cryptocurrencies in market capitalization when writing.
Although the Cardano network has a clear and ambitious vision (condensed into five stages), the crypto community has expressed concerns.
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Analysing Cardano Network: The Good And Bad
Cardano has advocated for momentum from its inception in 2017. The network has passed many checkpoints to become the ideal blockchain network. The ADA token’s price previously ranged from $0.03 to $1.20 between late 2017 and early 2018, offering early investors a 3900 percent return. As witnessed in 2021, the ADA token increased from $0.15 to more than $2 in a short period.
Cardano was compared to Solana because it realized the limits of the Ethereum network and tried to develop a network with scalability, cheap transaction fees, environmental friendliness, and minimal processing time. Cardano transaction fee is 0.4 USD while Solana gas fees is 0.00025 USD
Cardano addressed Ethereum challenges by using a rigorously peer-reviewed and mathematically directed paradigm. By implementing its Ouroboros Proof of Stake method, the anticipated energy needed to operate the network was decreased by about 99 percent.
Read more: Cardano vs Ethereum: ADA vs ETH. Which is better 2023?
When compare to Solana transaction per second, the Ethereum network could only manage roughly 15 transactions per second (TPS), whereas Cardano was designed to handle more than 250 TPS.
The PoS technique also resulted in cheap gas fees, coveted in the crypto market. According to rumors, Cardano costs roughly 0.1 ADA every transaction.
Other goods supported by the Cardano blockchain include monitoring agricultural items, confirming and preserving credentials, and analyzing counterfeit products.
The Cardano team is well-known for its research and data-driven approach. It divided its timeline into five eras: Bryon, Shelly, Goguen, Basho, and Voltaire. The crew has been accused of missing repeated deadlines and prioritizing perfection and error-proofing above first-come, first-served.
For example, on September 12, 2021, the Alonzo hard fork was deployed to allow smart contracts on the Cardano network. It took a long time for a network that has been developed since 2017, unlike other initiatives like Solana, which could deploy smart contracts nearly immediately after its establishment.
As opponents criticized Cardano’s delayed rollout, Johnny Lyu, CEO of crypto exchange KuCoin, said that it is only appropriate for the development team to take their time and prevent errors that may lead to hacking.
Analysts feel that Cardano’s cautious and steady actions are required to avoid what occurs when Smart contracts are rushed, as shown on the Binance smart chain network, which has lost over 800 million dollars due to hacking operations in 2021 alone.
Given Cardano’s pace and strategy, Mr. Lyu was eager to point out that it may take more than two years for Dapps to run at full scale on the Cardano blockchain.
Cardano’s accounting technology is the eUTXO concept in terms of smart contracts. Analysts have both criticized and praised the eUTXO model. Marek Mahut, the founder of Five Binaries, seemed pleased with the eUTXO concept when he said that the eUTXO gives a means to simply writing safe smart contracts.
As Cardano received criticism for the eUTXo model, Charles Hoskinson and his colleagues addressed the problem. He then charged the media with disseminating false information regarding the eUTXO model.
Cardano vs Solana: Which Is Better?
Cardano and Solana have had a successful career since their official debut. Since their Initial Coin Offering (ICO), both have achieved similar ROIs; Cardano has returned over 445X, while Solana has returned over 434X.
The above statistic indicates a favorable slant for Solana, which was released at least two years after the Cardano network was unveiled.
Solana and Cardano have been dubbed “Ethereum killers,” but Solana embodies this notion with its fast speed of transaction, scalability, and cheap gas fees. Despite the most hopeful assessment of the Solana network, it is not without flaws.
Solana’s pricing projection indicates a bright future, yet, the Solana network has suffered more than six failures since its introduction, leaving customers with transaction backlogs. According to analysts, the Solana team prioritized scalability above security during the 17-hour outage that needed the assistance of engineers and over 100 validators.
The Solana team swiftly blamed the denial-of-service assault, pointing out that Solana is a brand-new enterprise that does not include a virtual machine. Another school of thought is that outages are frequent in a young project like Solana, which is why Sergey Zhdanov, COO of crypto exchange EXMO UK, feels that if customers were worried about downtime, they would have abandoned Ethereum by now.
Decentralization is a fundamental subject in the crypto community, and it is an appropriate contrast when discussing Solana – Cardano price prediction
The chief marketing officer of Gate.io, Marie Tatibouet, disclosed that Solana’s outage difficulties undermine trust, stating that Solana had suffered from greater centralization concerns in the previous year since the team had prioritized scalability above security.
The Solana network primarily relies on the Solana Foundation to develop core nodes for verifying transactions on its blockchain. Although anybody may become a validator on the Solana network, the transaction throughput is prohibitively costly.
Because power has been concentrated in the hands of a few people, the reality above may result in a price pump or dump, as well as a 51 percent assault on the network – the polar opposite of cryptocurrencies.
The Cardano network, on the other hand, previously declared a 100 percent decentralized block production on the Cardano network.
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60% Solana, 40% Cardano
Better buy Solana vs. Cardano: Both are unique blockchain enterprises that use cutting-edge technology and have generated significant profits in the last year. While Cardano uses peer-reviewed research and is a forerunner in decentralization with a delayed development process, Solana is a superior technology product with one of the quickest and cheapest blockchains but a quasi-decentralized network.
We feel that investing in Solana (SOL) now is marginally superior to investing in Cardano (ADA), and we have assigned a 60% stake to SOL. If an investor has Rs.1,000 to invest today, he may put Rs.600 into SOL and the rest into ADA.
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Is Solana a competitor to Cardano?
Solana competitors are Cardano’s challengers regarding transfering speed, smart contract functionality, and low transaction costs. Both cryptocurrencies are regarded as blue-chip blockchain technology by investors. Both were developed in 2017, and both chains may deploy smart contracts such as NFTs and Decentralized Finance (DeFi) Platforms.
Read more: TOP 10 Best Defi Coins To Trade & HODL In 2023: A Complete Lists For Crypto Traders
Is Cardano network slower?
Solana can handle up to 50,000 TPS meanwhile the figure of Cardano is just 250.
Which is better Solana or polkadot?
It is hard to tell which of the two initiatives is superior since they are so dissimilar. Polkadot addresses scalability and interoperability issues in blockchain technology, while Solana aims to deliver speed and cheap costs.
Is Solana the best crypto?
Solana was one of the crypto world’s breakthrough stars in 2021, and it’s also one of the fastest-growing coins. Although its main competition is Ethereum (ETH -4.01 percent), Solana’s latest advances are also assisting it in competing with Bitcoin.
Read more: Polygon Vs Ethereum: MATIC Vs ETH. Which Crypto Is Better In 2023
Which is better Cardano or Polkadot?
Cardano features a two-tier architecture, but Polkadot allows several blockchains to be linked to a single mainnet. Polkadot’s advantages include infinite scalability and sustainability, while Cardano’s advantages are fast transaction speed and cheap (or free) transaction costs.
Read more: TOP Polkadot Projects To Know In 2023: DeFi, P2P, NFTs, Metaverse
After comparing Cardano and Solana, it is clear that both have their strengths and weaknesses. Cardano is a more established project with a strong community backing, while Solana is a newer project with much potential. Both projects have their merits, which ultimately come down to personal preference. Thank you for reading, and we hope this helped you make a decision.
Disclaimer: The information provided in this article is not investment advice from Cove Markets. Cryptocurrency investment activities are yet to be recognized and protected by the laws in some countries. Cryptocurrencies always contain financial risks.
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