The emergence of Web3 led to the creation of decentralized blockchains which offered a platform for peer-to-peer digital transactions and enabled smart contract functionality, a significant step towards mainstreaming decentralized finance (Defi). With a reputation for being a trendsetter, Ethereum is the most popular blockchain on the market and has seen considerable growth over the past few years.
Nevertheless, the high gas fees coupled with the slow transaction rate with Ethereum makes it less desirable, particularly for those with small budgets. Hence, Solana and Cardano have become known as Ethereum-killers due to their ability to perform a plethora of transactions in a matter of seconds with almost no gas fees.
This week’s round-up includes a detailed comparison between Solana and Cardano blockchains, as well as explaining important steps that both blockchains are taking to address the underlying issues and achieve future goals. Those factors may influence how one chooses to invest in either of these projects.
Solana blockchain is one of the fastest blockchains on the market as it incorporates a medley of “Proof of History (POH)” and “Proof of Stake (POS)” protocols to offer secure transaction services. Capable of carrying 50,000 transactions per second (TPS), the Solana blockchain is termed the fastest recognized blockchain on the market since major blockchains offer considerably lower rates of transactions. For instance, Ethereum is only capable of offering 15 TPS.
Solana blockchain is user-friendly and allows its community to deploy decentralized applications since the blockchain is smart contract enabled. Currently, a handful of metaverses and other Solana-based dApps are live and gaining traction with the enthusiasts for their wide range of features with security being the top priority. One of the popular Solana-based applications, Star Atlas, a sensational metaverse aimed to let us experience the cosmos, has taken the crypto sphere by storm.
SOL is the native coin of the Solana blockchain and up till now, this digital currency has done well considering the trends within the crypto sphere. The total supply of the coin is unknown; however, more than 250 million coins are said to be in circulation, indicating that the coin is in demand and may prove an exceptional crypto asset in the coming years.
As for the history of the blockchain, Solana was launched quite recently in 2020 and the project was led by Anatoly Yakovenko. In a short span of time, Solana has managed to grow significantly in value and offered generous ROI to investors. Those who invested early reaped 400X returns on their investment.
Solana is popular for its blistering fast rate of transactions per second and later in the future when the project is to mature, there’s a possibility that this could be key in financial transactions within the crypto spheres. Similarly, the fees on the Solana blockchain are incredibly low and it is another reason why the blockchain soared in popularity.
Another prominent aspect of the Solana blockchain is Solana Pay, a peer-to-peer application aimed at offering a hassle-free transaction of cryptocurrencies without a 3rd-party validator.
Despite all the fascinating features of the Solana blockchain, there are some security concerns over Solana that has plagued the blockchain. Over the past couple of years, the blockchain suffered a handful of outages, leading to the loss of digital assets for many users.
Similarly, reports of DDOS attacks were already reported earlier this year which resulted in criminals stealing more than $4 million from the wallets of Solana users. Moreover, the security protocols and transaction mechanics are still years away from being fully matured and although major blockchains have suffered from similar fates as well, enthusiasts have shown trust in the Solana blockchain and have kept backing the project despite its shortcomings.
Cardano blockchain is an open-source project led by Charles Hoskinson, a major name within the crypto space since he played a key role in the success of the Ethereum blockchain. Inspired by Gerolamo Cardano, an Italian renaissance polymath and intellect, the Cardano blockchain represents a real-world example of a decentralized space backed by ADA, the native currency of the Cardano blockchain.
The idea of a decentralized world is implemented through the blockchain as it allows the token holders to take the blockchain forward. Today, Cardano is home to countless decentralized applications and among them, Pavia, an upcoming metaverse, which is one of the most popular projects that the blockchain has hosted so far.
Launched in 2017, Cardano has seen incredible success and early investors reaped generous rewards in the shape of generous ROI of up to 400%. Incorporating the ‘Proof of Stake’ mechanism for validation of transactions, the developers managed to tweak the system so that it would offer fast transactions per second (TPS) with low transfer fees.
On paper, Cardano is capable of carrying out up to 250 transactions per second (TPS). And while it is nothing compared to the Solana blockchain, the TPS of Cardano is a significant improvement over Ethereum’s 15 TPS.
Major investors which include Samsung invested in the Cardano project, contributing to the success of the blockchain. And since dual-layered security features are incorporated to make the ecosystem more reliable and sustainable, Cardano is known for adapting the latest technology to stay ahead of everyone.
Moreover, in the roadmap laid by the developers, there’s a great emphasis on enabling creators to employ the smart-contract facility for their decentralized applications and this factor alone has attracted creators from all over the world to join the platform and launch their decentralized applications.
Cardano developers are lagging behind schedule and have failed to introduce innovative features to the blockchain in a spontaneous manner. The fact that the data is peer-reviewed and special precautions are taken before implementing the feature to the blockchain is a habit at Cardano, still, the team’s failure to complete the different phases of the developmental process leads to enthusiasts showing doubts about the management of the blockchain, resulting in a decrease in the blockchain’s popularity.
Conclusion: Which One should you invest in?
Cardano and Solana’s blockchains are the future of the crypto world and although they are ranked 8th and 9th best cryptocurrencies in the world, it won’t be long before these currencies, SOL and ADA, are considered to be the most stable cryptocurrencies in the world. As for current affairs, the Solana blockchain seems to have an edge over Cardano because of its incredibly fast TPS and low transaction fees.
In a similar manner, Cardano also has a few tricks up its sleeves as well but since the project is hardly out of its infancy, it will be some time before the true potential of the blockchain is observed.
At the moment, investing in both Solana and Cardano would be a decent choice but, in the end, it’s up to the personal preferences of the users to decide which blockchain is worth it for them. While we’ve presented the facts regarding the blockchains that are causing a sensation in the crypto sphere, investors will make the final decision.