Investors are keen to get back on track in 2023 after a previous year of difficulties. They are equally keen to utilize the well-known investment and trading platform, Bitcoin Market, for doing so.
However, which coins/tokens may they trust, and which should they avoid? Furthermore, among the lot, two specific cryptocurrencies have captured global attention. They are Solana (SOL) and Cardano (ADA). Thus, investors need guidance on which is the better option for investment, between the two.
Consensus Mechanism
SOL
Solana operates on a proof-of-history consensus algorithm. Validators use it to process transactions efficaciously. The system offers a method to verify the time and order of historical events. It is a cryptographic time-stamping process. With its help, validators may access verifiable proof of periods involving every single monetary transaction.
Thanks to this method, the company has been able to achieve excellent block times, like 400 milliseconds. Similarly, 65,000 transactions go through every second. Despite these wonders, skeptical experts still have concerns regarding security measures associated with the proof-of-history (PoH) consensus mechanism.
For one thing, attacks could affect the entire blockchain network. True, the developers at Solana have set up stringent security protocols in place. Nonetheless, there is no guarantee that intelligent cyber criminals will stay away. After all, with the best of intentions, Sam Bankman-Fried, the CEO of FTX could not prevent swindlers from breaching the privacy of the cryptocurrency exchange.
Similarly, there is the question of sustainability. True, the processing of transactions is rapid. However, storing data (historical events) still presents a problem. As the blockchain’s size keeps growing, there will be an increasing need for greater storage space. If the space is not sufficient, users will be unable to run a node. They will not even be able to participate in the network.
Nevertheless, the Solana ecosystem’s consensus mechanism does have its advantages. The PoH algorithm should enable the achievement of a fast, scalable, and secure blockchain. It will be possible to have advancing technology in place for developing or applying a wide array of decentralized (DeFi) applications.
ADA
The consensus algorithm that comes into play here, is the Ouroboros proof-of-stake (PoS). Ouroboros refers to the highly-secure PoS protocol, which is a tried-and-proven one. Admittedly, the company comprehends the importance of scaling investor engagement in the blockchain space and attracting useful projects. Therefore, users consider the company and its native coin to be extremely trustworthy and reliable. This way, they hope to gain long-term success while dealing with cryptocurrencies.
Ouroboros was developed and launched, only after the team had engaged in plenty of peer-reviewed research. Therefore, it makes the blockchain protocol unique, especially as it is also a combination of innovative philosophy and technology. Thanks to this protocol, the Cardano network is both, sustainable and secure. It is also possible to utilize minimum energy for propagating permissionless, global networks. Since it operates on the concept of infinity, Ouroboros ensures the preservation of the world and business ethics.
There is a condition attached to the security of the protocol. The stake in the company must stand at 51%. The stakeholders must be honest users. The company accesses them via a random selection of leaders, and other unusual concepts. Thus, the protocol utilizes rigorous security analysis and new iterations, to evolve.
Expenditure and Speed
Regarding the speed of transactions, Solana does a better job than Cardano does. Even the costs are affordable. However, investors do worry about issues concerning reliability and security. For a layer-1 blockchain network, rapid and inexpensive operations prove highly desirable. However, issues like dependability and security may not be cast aside, either.
In contrast, the Cardano platform offers superior security. The transaction costs are low, too. The disadvantage is that the focus on security tends to lower transaction speeds. Even the building and operating of applications can be slower, in comparison to what’s happening on the Solana network.
Earlier, the Solana blockchain had gained the label of a go-to network, especially regarding cryptocurrency transactions and NFT projects. However, the bear market has created trouble for NFT projects. Therefore, the price of SOL has also plunged. True, Cardano has also suffered due to the long crypto winter. Nonetheless, thanks to the security advantages that it offers, this coin offers better prospects for investors.
