Comparison of Cardano vs Ethereum vs Solana – More than 6500 cryptocurrencies are in existence today, but only a handful of them is sought after in the blockchain space. During the initial days of the decentralized peer-to-peer network, it was Bitcoin that pioneered a trend among dedicated investors and followers .
All the cryptocurrencies introduced after Bitcoin, mostly as an improved version, are commonly referred to as altcoins. With continuous innovation in the field of cryptocurrency, we can expect a better new digital token to be launched anytime.
Three Altcoins that are changing the face of Cryptocurrency
Cardano vs Ethereum vs Solana are among the top 10 widely used blockchain networks apart from Bitcoin. There are some important aspects that investors should know before investing in any of these three popular crypto platforms.
Founded by Charles Hoskinson, who is also the co-founder of Ethereum blockchain, Cardano is a third-generation, decentralized proof-of-stake (PoS) blockchain platform. Cardano is a research-driven platform that primarily enables transactions using its own primary digital currency, ADA. ADA is distributed to slot leaders as a reward for verifying transactions. The network allows developers to use ADA to build and run smart contracts and decentralized apps on the network.
The network is designed on a research-driven framework aimed to achieve technological adoption in the long run. Cardano progressed through five major platform upgrades for foundation, decentralization, smart contracts, scaling, and governance known as eras of Byron, Shelley, Goguen, Basho, and Voltaire respectively. In addition, the transfer of ADA cryptocurrency was first enabled through Byron and Voltaire. Then they introduced a new model to cope up with the software changes.
This way the peer-reviewed insights on the network can be improved for future application of the network and its cryptocurrency.
Launched in 2015 by a group of Blockchain enthusiasts, Ethereum, is the second most popular cryptocurrency after Bitcoin right now. It has a value proposition that is quite different from that of Bitcoin. Similar to Cardano, Ethereum is a decentralized ecosystem that allows developers to build and run smart contracts and decentralized apps without any third-party interference. It also has its own digital currency, Ether which developers have to buy and pay to the network. Its investors buy Ether as it rises in its value with more and more developers and investors buying it.
For investors who are new to cryptocurrency, Ethereum would be an option that is as good as Bitcoin since they have similar risks and growth potential. Ethereum comes only second in popularity, but it tops in technological aspects. Ethereum is soon expected to gain popularity in terms of its utility with its latest network update.
Unlike Cardano that runs on the PoS algorithm, Ethereum runs on the PoW consensus mechanism. Subsequently, the network’s issues on scalability, security, and congestion have been solved by the latest ETH 2.0 version that runs on the PoS algorithm with enhanced speed and efficiency.
Solana is the world’s fastest blockchain with 400 millisecond block times and an average cost per transaction of $0.00025. The decentralized blockchain network which was launched in 2020 by the Solana Foundation is also the fastest growing cryptocurrency with its price up to 40 times over a period of 12 months. In addition, this network runs on the SOL cryptocurrency which has a value of over $140 per coin. Above all, Altcoin’s value hike is favored by Solanart, the network’s feature built on the SOL blockchain for non-fungible token (NFT) transactions.
In short, Solana is designed to be free from many of the issues that Ethereum has including scalability and cost of transacting. Moreover, claimed speed and lower transaction cost of Solana make it preferred over Ethereum as decentralized finance and digital collectible. The value of SOL has been rising up as the network works on a cryptographic time-stamping system that can facilitate 65000 transactions at a time. Subsequently, the value of SOL has tripled in about three weeks. This made it rank seventh among cryptocurrencies with a market cap of $41 billion. Although, some of the major players in the crypto space hint that the price climb is likely to continue and SOL investors are hoping it to be a long-term competitor for Ethereum.
Comparison between Cardano vs Ethereum vs Solana
|Primary Cryptocurrency||ADA||Ether (ETH)||SOL|
|Market Capital||76.823 billion||413.315 billion||47.197 billion|
|Initial Release||27 Sep 2017||30 July 2015||April 2019|
|Protocol||Proof of Stake (PoS) Ouroboros||Proof of Stake (PoS)||Proof of Stake (PoS)|
|Monthly Active Developers||165 (31.8% yearly rise)||168 (23.2% yearly rise)||50 (84.4% yearly rise)|
|Commits per month (CPM) 2020-21||702 (24% Yearly rise)||447 (10.5% yearly rise)||247 (18.6% yearly rise)|
|Written in||Haskell||Go, Rust, C#, C++, Java, Python||Rust|
The massive surge that Solano’s SOL and Cardano’s ADA gained in its value in recent times diverted some attention from top crypto tokens, Bitcoin and Ether. In general, the consensus algorithm of the first Bitcoin alternative, Ethereum transitioned from proof-of-work (PoW) to proof-of-stake (PoS) similar to that in Cardano and Solana where participants can stake their digital currency to the network.
So, as an alternative to Bitcoin’s proof-of-work (PoW) mechanism, the proof-of-stake (PoS) algorithm of Cardano, Ethereum, and Solana makes the network run itself with far less energy, improved transaction speed, and a deflationary economy. More than a medium of exchange and a store of value, Cardano, Ethereum, and Solana are primarily designed as a network to enter into smart contracts and decentralized applications via their own currency. Above all, the space of these Blockchain-based cryptocurrencies has exponentially grown by disrupting the existing financial order.