Many cryptocurrencies are vying for Ethereum’s place on the ladder: Polkadot, Avalanche, Zilliqa, Cosmos, etc. – the list of rivals is extensive. However, two clear contenders lead the pack; Cardano (ADA) and Solana (SOL). So what exactly makes these tokens’ Ethereum killers’? This post provides a side-by-side Cardano vs. Solana comparison by uncovering what they have in common, where they differ, and which is better.
Cardano Overview
Cardano is among the top cryptocurrency projects that have successfully implemented the proof-of-stake (PoS) validation mechanisms. Cardano serves as a blockchain network powering a native cryptocurrency token called ADA, one of the best cryptos to purchase in 2022.
The crypto project was founded in 2017 by big names in the crypto space, Charles Hoskinson and Jerry Wood – both were co-founders of the Ethereum network but left after a disagreement on how to move the company forward.
Cardano is unique among other cryptocurrency tokens and coins. The network features a secured and two-layered architecture that allows processing transactions and deploying smart contracts, thus, harnessing its potential interoperability.
Its proprietary validation mechanism, Ouroboros Proof of Stake, delegates validation powers to ADA holders, who are simultaneously rewarded for delegating their tokens to the validation network.
ADA, the native token on the Cardano network, has a limited supply of about 45 billion, with only about 33.5 billion ADA tokens in circulation. At this writing, ADA maintains the bottom list of the top 7 cryptocurrencies by market capitalisation.
Although the Cardano network maintains a clear and ambitious roadmap streamlined in 5 phases, there are still concerns raised by the crypto community at large.
Cardano. Image from Unsplash.com
Solana Overview
Solana is an open-source blockchain network that allows the deployment of decentralised apps (dApps) and the execution of smart contracts with SOL as its native cryptocurrency token. The Solana network was founded in March 2020 by a group of computer programmers led by Anatoly Yakovenko.
Talking about the tokenomics of SOL, there is no data on the maximum supply of SOL tokens, but about 489 million SOL tokens were released into circulation; however, about 260 million have entered the market.
Cardano may have been the first proof of stake mechanism, but the Solana network tweaked its blockchain to implement the first-ever proof of History (PoH) with the popular PoS.
Solana veered into the crypto market with a plan to solve the problem faced by Ethereum and Bitcoin – scalability, fast transaction and low transaction cost. Anatoly Yakovenko allowed Solana to process over 50,000 TPS with low fees compared to 250 and 15 TPS recorded on the Cardano and the Ethereum network.
Proof of History alongside Proof of Stake reduced the time needed for validators to process a transaction. In essence, it lessens the workload of the PoS by encoding time itself into the blockchain. This time stamping works to alert the network about the sequence and order of occurrence on the Solana blockchain.
Traditional institutions have praised the high speed of transactions on the Solana network. In January 2022, the Bank of America voiced to clients that Solana could become the VISA of digital assets.
Solana. Image from Unsplash.com
Cardano Pros & Cons
The Cardano blockchain infrastructure comprises the Cardano Computational Layer (CCL) and the Cardano Settlement Layer (CSL). The former is responsible for the governance and deployment of smart contracts and applications, while the latter handles all the network’s transactions. The CCL and CSL seamlessly interoperate with zero friction surrounding communications and can function autonomously. Cardano users can still interact with the network while one layer is experiencing updates.
Two layers of the Cardano blockchain. Image: Telegraph
Cardano uses scaling infrastructure that allows for the continuous addition of nodes without compromising on security or speed. Moreover, as the network grows, theoretically, so will its speed.
Cardano is introducing a novel sidechain protocol to extend interoperability with other networks. Using developments from Kiayias, Miller, and Zindros, Cardano presents the KMZ sidechain protocol for secure and non-interactive movement of funds from the CSL to any CCL or other blockchain supporting the protocol.
According to the Cardano roadmap, the project will soon be entering the Basho Era to introduce scaling facilities, including the sidechain protocols. Then, the final phase, the Voltaire Era, will enable on-chain governance and treasury systems for the self-sustainable development of the blockchain.
Solana Pros & Cons
Solana’s Proof-of-History (PoH) is a valuable innovation in the industry. Solana uses a Tower Byzantine Fault Tolerant (BFT) protocol to support the PoH, enabling a PoH-optimised version of a practical Byzantine Fault Tolerant (pBFT) consensus model.
In addition, it uses a protocol to negate the use of mem pools called ‘GulfStream’. This automatically forwards transactions to nodes, resultantly removing the risk of transactions getting ‘lost’ or redirected to a mempool. In turn, this helps drastically speed up the confirmation times on the network.
Solana offers one of the fastest and cheapest blockchain experiences in the industry. Moreover, it hosts hundreds of dApps on its network as the fastest-growing ecosystem, showing no signs of slowing down.
While Solana may offer some of the fastest transaction speeds and cost-efficiency without compromising security or decentralisation, interoperability is an area with less development focus. The project provides a range of tutorials, toolkits, and resources for deploying applications on the Solana network. However, for the project to grow with the adoption of blockchain in the coming years, it will likely need to implement some form of interoperability standard to connect with the broader blockchain industry.
Cardano vs. Solana Similarities
High Market Caps: Cardano and Solana have multi-billion dollar market caps, which generally means these coins will be comparably stable compared to emerging, lower-market-cap coins. Of course, this is not a steadfast rule, and price predictions in crypto are notoriously unreliable. Still, investments in these coins will often be less volatile than in a new, growing token.
Potential For Transaction Speeds: Solana currently operates at a possible speed of 50,000 transactions per second (tps), but with projected future hardware advances, this speed is expected to reach up to 700,000 tps. While Cardano is at a comparably low 250 tps, its planned Hydra update aims to enable up to 1 million transactions per second across the network.
Smart Contracts & NFTs: These crypto platforms both support smart contracts and the exchange of NFTs. Cardano’s most recent Alonzo update enabled this capability and has been met with great interest and early adoption. Of the two, Solana is the more established platform for these functions, having over 400 smart contracts and successfully providing the technology for several large-scale NFT auctions.
Efficient & Environmentally Friendly: Both Cardano vs Solana offer alternative platforms to the well-documented, resource-intensive nature of cryptocurrencies like Bitcoin and the current Ethereum technology. Bitcoin mining accounts for roughly the same carbon dioxide emissions each year in New Zealand. Both Cardano and Solana have a far smaller environmental footprint.
Cardano vs. Solana Differences
Transaction Fees: While Cardano and Solana have vastly lower transaction fees than Ethereum, their prices have apparent differences. Cardano currently has an average transaction fee of €0.18 compared to Solana, which offers a meagre transaction fee of €0.00025 per transaction. Based on these figures, Cardano is 800 times more expensive to transact on than Solana.
Planning and Decision-making: Cardano uses a selective, peer-review process to identify and solve complex problems of new technology before integrating it into the network. Like Cardano, Solana is similarly innovative, but the planning and execution of both networks are very different.
Blockchain validation processes: The methods of Cardano and Solana in executing the vital blockchain validation process differ significantly. Cardano uses a PoS protocol to validate transactions. Meanwhile, Solana uses a hybrid system that features PoS, but also uses a Proof-of-History (PoH) method, where the foundation of the validation procedure relies on the unique timestamping of blocks based on the order of blockchain transactions and the passage of time between them.
Transaction speed: The Solana network is unmatched regarding transaction speed. They claim a theoretical peak capacity of 65,000 transactions per second (tps), though, in practice, it’s usually around 2500 tps. In comparison, Cardano seems sluggish with around 250 tps, but it’s important to remember that Ethereum only reaches an average of 30 tps.
So, What’s Better: Solana or Cardano?
While Cardano has a fixed cap on the number of available tokens, Solana runs a deflationary monetary system whereby the SOL tokens used for paying transaction fees are burnt and taken out of circulation. Both monetary policies ensure a healthy price for the two tokens.
The choice between Solana and Cardan boils down to personal needs and preferences. Investors interested in a new project that has grown tremendously well in the past year, shown potential but is yet to undergo a complete decentralisation and is known to experience mild technical issues should go for Solana. While for investors who can accommodate a steady, albeit slow growth, with proven scientific foundations, have a clear roadmap, though known to miss multiple deadlines, Cardano may be the obvious answer.
Whatever you decide to do, get your research done and consider your investment strategy before you start investing in any asset, including Cardano and Solana. Remember to take into account portfolio diversification and your personal risk tolerance, so don’t let FOMO and impulsivity take investment decisions for you, especially in turbulent times.
FAQs
How many transactions per second are made on Cardano vs. Solana?
Solana boasts the ability to perform up to 65,000 transactions per second, with future hardware advances predicted to facilitate speeds of up to 700,000 transactions per second. Cardano can perform up to 250 transactions per second but future updates to the platform promise to increase this to around 1 million transactions per second.
Can I use smart contacts & trade NFTs on Cardano Vs Solana?
Both the Cardano and Solana networks enable the fulfilment of smart contracts, as well as the secure and private trading of NFTs.
What Technologies do Cardano And Solana use?
Solana utilises a proof of history blockchain network for mining and transfer, allowing greater transaction speed, a smaller mining energy footprint and lower costs than proof of work systems. Cardano operates on a proof-of-stake platform, similarly superior to the proof-of-work system that underlies cryptos such as Bitcoin and Ethereum 1.0.
How Safe Is Purchasing Cardano Vs Solana?
Without a malicious party owning a stake amounting to tens of billions of dollars, Cardano and Solana are provably secure, meaning that transactions will be safely executed between the intended sender and recipient. Like all cryptos, Cardano and Solana should be purchased from a reputable and secure cryptocurrency trading platform to eliminate the risk of fraud.
What is the price of Cardano vs. Solana?
The current prices of Cardano vs Solana can be checked online through cryptocurrency database websites like CoinGecko and CoinMarketCap. Such sites can also be used to compare Cardano, Solana and other cryptos like Polkadot, Algorand, Avalanche, Matic and Ethereum.
Where to purchase both Cardano and Solana?
Nowadays, with Cardano and Solana having reached the public eye through their massive growth, the two fiat coins can be purchased from a large number of digital crypto services. One of the best crypto platforms you can use to buy a wide range of coins and digital assets is CoinSpot.
CoinSpot Australia is the top-rated crypto exchange in the country. It supports an extensive list of more than 350 cryptocurrencies, including Bitcoin, Ethereum, Cardano, Dogecoin, Solana, and Shiba Inu, and smaller-cap altcoins with the potential for greater gains. In addition, this AUSTRAC-registered platform offers the highest degree of security certifications and the most advanced support systems. You can read our CoinSpot review to learn more about this exchange’s features.