Solana vs Cardano: Which is the better blockchain?
Cardano and Solana are similar projects. They both support smart contracts and provide their clients access to many features in decentralized finance ecosystems.
Cardano vs Solana are direct competitors to the well-known Ethereum blockchain due to the solution to the scalability problem. These two platforms have evolved over the years in parallel in the cryptocurrency market. This fixed them with the stigma of eternal confrontation.
If we compare the two platforms for investors to determine the best of them, we can say that Cardano is unique due to the presence of the Proof of Stake verification function. On the other hand, Solana is popular due to its transaction speed, which is a big plus for many crypto communities interested in fast and high-quality exchanges. However, even Ethereum cannot be compared with Solana network in terms of transaction speed.
An objective comparison of two popular blockchain companies, SOL and ADA, can give investors an idea of what to look for when investing in one of the firms.
The Cardano project is among the best blockchain projects that successfully implemented the well-known Proof-of-Stake system. This blockchain network has its bitcoin – ADA.
If we talk about the history of the new project, then it was founded in 2017 by two co-founders of the Ethereum blockchain – Jerry Wood and Charles Hoskinson. They left due to disagreements over how to promote the project and created their own unique product and the Cardano team. Cardano blockchain is a worthy competitor to Solana due to its uniqueness among other coins and cryptocurrencies. Furthermore, this has a secure architecture and allows the use of so-called potential interoperability when deploying smart contracts and transaction processing. By the way, crypto audit companies are very important for blockchain projects.
The project also has its own consensus mechanism called Ouroboros Proof of Stake. With it, the network delegates verification authority to ADA coin holders, who are rewarded for delegating their coins.
Cardano’s ADA coin also has a limited supply of around 45 billion. At the same time, at the moment, there are more than 30 billion of them.
Analyzing Cardano Network
At the time of writing, it has been five years since the Cardano blockchain first appeared. On the way to creating an ideal blockchain network, the project has gone through many stages of development and has only continued to gain popularity ever since. At the launch’s start, the ADA coin price ranged from 3 cents to $1.2, which gave a considerable ROI to early investors. Further, in a short period, the coin rose to $2 and will only continue to grow.
Cardano’s many unique features have made the network comparable to Solana because the first saw the high transaction fees and limitations of the Ethereum network and thus sought to ensure scalability, environmental friendliness, and short transaction processing times.
Using a mathematically guided model, the company was able to solve many of the problems of its main competitor in the face of the Ethereum blockchain. One of the best decisions of the company was the implementation of the unique Ouroboros consensus mechanism Proof of Stake, which reduced the energy required to operate the network by 99%! While the Ethereum network was processing no more than 15 transactions per second, Cardano had a processing speed of 250 transactions per second, which is a considerable number. Low transaction fees are also ensured through the above mechanism. This is a good solution for the crypto market.
Solana is an open-source blockchain network for deploying applications and executing smart contracts. The company presents SOL tokens as its own cryptocurrency token. The network was founded relatively recently – in 2020 by a group of programmers led by Anatoly Yakovenko.
For all the time, about half a billion tokens were issued into circulation, but only 260 million entered the market. Solana was the first in history to set up the blockchain in such a way as to create the first proof of history among crypto companies.
Solana entered the crypto market with a plan to solve many of the problems of blockchains like Bitcoin and Ethereum. The critical issues of these giants include scalability, low transaction speed, and high transaction fees.
The ambitious Solana development team was able to solve these problems by implementing the aforementioned Proof of History. This allowed the Solana blockchain to process more than 50 thousand transactions per second with a lower fee than Ethereum and Cardano. In addition, proof of History and Proof of Stake mechanisms have reduced the time required to validate transactions.
Many institutions praised the benefits of Solana in terms of high transaction speed and low cost of paying transaction fees. In January 2022, Bank of America reported that Solana could become a visa-level digital currency giant.
Why Choose Solana Over Cardano?
Cardano and Solana have had high profitability rates since their official release and have been able to perform well in the best crypto market.
Solana and Cardano are often called killers of Ethereum and bitcoin, as many of the problems that such giants have been taken into account and corrected by new projects. However, like everything, they have their drawbacks.
Solana has been down six times since the network’s launch, leaving users in a difficult situation. In addition, many analysts, after another outage incident, began to suggest that the Solana team prioritized scalability over security.
Also, the Solana network is entirely dependent on the Solana Foundation to verify transactions on its blockchain. Although anyone can become a validator on the Solana network, it is still too expensive due to the transaction throughput. All this can lead to the pumping or dumping of SOL token prices and a 51% attack.
At the same time, the reverse situation is observed in the Cardano network, which reported 100% decentralized block production in the network. Despite this, the advantages of Solana over Cardano are apparent, which determines the choice of the majority of users in favor of the first option.
Ethereum, the world’s most famous blockchain, has opened the gateway to next-generation financial solutions. This means that DeFi will grow very rapidly over the next few years. However, Ethereum’s inability to scale and high fees hinder the further development of DeFi. For this reason, blockchains like Cardano and Solana can take charge and continue to accelerate the mass adoption of DeFi. This will provide higher throughput and cheaper transactions.
Solana vs Cardano – which is better?
To sum up, Solana as a competitor to Ethereum, occupies a higher place in the rating list since it was this project that provided support for smart contracts long before Cardano did. But at the same time, Cardano developers will be able to deploy many DeFi dApps.
Solana is slightly ahead in the development of Cardano, however, Cardano has a large market capitalization and financial support from partners.
Where Can You Buy Both Cardano and Solana?
Solana is an established crypto, and you don’t have to spend a lot of effort to buy it. You can buy SOL and ADA tokens on crypto trading platforms such as Crypto.com, Coinbase Global Inc, SoFi Technologies Inc, etc. For beginners, Coinbase is more suitable as it is easy to use.
Both coins have excellent growth potential. Thus, none of them can be written off. Instead, given the lower current price of Cardano, it has the highest upside potential in terms of investment potential. However, Solana pros have significant advantages over Cardano, whether it’s validating transactions speed or fees. The choice is yours, but you can’t go wrong whatever you choose.
Cardano is an essential comparison between Solana and Cardano because the token is unique among other cryptocurrencies. The Cardano network offers a secure, dual-layered system for processing transactions.
Solana is well-known for its fast and efficient transactions but is still under attack from Cardano and Ethereum. In contrast, Cardano has a unique validation mechanism.
Ethereum wins because its position in the Ethereum market was established in 2013 when Solana entered the market at the beginning of 2020 and because it prefers more transparency than Solana.
Does Solana matter? Like all small altcoins, investments in Solana have risks. However, experts point to Solana’s potentially stable and relatively stable market share compared to others.