Cardano (ADA), and Solana(SOL) are the two most well-known blockchain networks on the cryptocurrency market. Cardano’s native cryptocurrency, ADA tokens is while Solana uses SOL tokens. Both are advertised as being cheaper and quicker than Ethereum, which is second in market capital behind Bitcoin. Like Ethereum, Cardano as well as Solana verify transactions using proof-of-stake consensus mechanisms. They also include smart contracts and decentralized apps (also known Dapps).
They have had to compete with Ethereum in slightly different ways. Cardano’s developers place a lot of emphasis on security and scalability, while Solana’s developers put more effort into transaction speed and lower cost.
Why might you choose Cardano
Cardano generally adopts an academic approach in development. Cardano’s network security is regularly audited by third parties. Cardano developers have published numerous peer-reviewed papers through partnerships between universities and other institutions. Input Output Group, the company behind Cardano, has partnered with Stanford University and Athens University of Economics and Business in order to study possible improvements to Cardano’s blockchain.
Cardano was the first blockchain to use the Ouroboros protocol. This protocol offers proof-of stake functionality and additional security. Cardano’s settlement delay protects the network from various attacks and is more secure than other proof-of-stake networks. The most recent blocks added to the network are not considered settled by this system. After a certain amount has been added, the blocks are considered settled.
Why Solana might be the right choice
Innovation and faster
Although Solana’s protocol uses a proof-of–stake consensus mechanism, it was slightly modified to allow for faster transactions. Solana’s new technology is known as proof-of-history. It incorporates timestamps to speed up transaction speeds. This innovative protocol allows Solana’s blockchain network to process over 3,400 transactions per minute, while Cardano can handle approximately 250 transactions per minute.
Low transaction charges
Users may need to compete for block space on slower blockchain networks to have their transactions processed quickly. It can slow down a network by having too many users trying to push transactions through simultaneously. This can lead to higher transaction fees because users pay more to get to the top of the queue. Users on the network won’t have to compete for block spaces with Solana’s proof of history protocol and transaction speeds. Solana’s transaction costs are extremely low at an average of just one penny.
Which one is better?
Although Solana and Cardano are very similar in many ways, Solana’s approach to technology is what sets them apart. Cardano might be better suited for investors who value scientific peer review before implementing technology. Solana may be the better option if speed is your priority.
The editor and author were not involved in any of the investments mentioned at the time this article was published.