The price of Cardano has been going up in the past five days to accumulate gains of 2.9% so far since the month started in contrast to the decline that most cryptocurrencies have been experiencing during that same period.
What makes Cardano so special and why is the market’s attitude toward the token so positive these days? One possible answer could come from the fact that the Cardano network is winning the race to become the ultimate Ethereum killer after one of its strongest rivals – Solana – suffered a 6-hour long outage.
The debate about which network is better has been going on for months and it is a heated topic of discussion in crypto twitter and discord servers. In this article, we discuss why Cardano (ADA) might be a better investment than Solana in the long run by focusing on the characteristics that make this layer-one blockchain stand out from other so-called Ethereum killers.
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Top Features That Make Cardano a Better Buy
There are many layer-one projects that would love to take Ethereum’s place in the crypto ecosystem as the go-to platform to deploy smart contracts. However, not all projects are built the same and, in this section, we discuss what makes Cardano a top choice for investors who believe that Vitalik Buterin’s network is poised to be substituted in the future by a faster and cheaper peer.
Decentralization: The Cardano network functions via the Ouroboros protocol which is the proprietary peer-reviewed consensus mechanism devised by the developing team to process and verify transactions.
Cardano currently boasts a higher number of nodes that can validate transactions (over 2K) while the number of nodes on Solana is far lower and are reportedly more expensive to run. This requires that the Solana Foundation actively supports the development of new validators and makes the network more centralized to some extent.
No outages: Since it was launched in 2017, Cardano has not reported a single outage. Meanwhile, Solana’s network has suffered multiple incidents in which no new block has been processed for hours and that makes this blockchain project less reliable than its peer.
If Solana were to be adopted by a corporation as its go-to network for minting non-fungible tokens (NFTs) or by decentralized apps, an outage may cause material losses and the loss of credibility by end customers.
Straightforward tokenomics: Cardano’s maximum supply was set at 45 billion ADA tokens. Establishing a limit for the number of tokens that can ever be issued typically assures investors that inflation within the network will be contained and will eventually be reduced to zero once all tokens are issued.
Meanwhile, SOL does not have a fixed maximum supply. According to data from CoinMarketCap, there are 340.45 million tokens in circulation.
Safety first: Some crypto enthusiasts have complained that Cardano has been slow at deploying some of its most appealing functionalities such as the Alonzo fork – an upgrade that supports the creation of smart contracts powered by the blockchain.
However, this slower-than-expected development process actually has a reason as the developing team prefers to launch new features only when they have passed the most thorough scrutiny. This means that network safety is prioritized and that is a positive thing to see in an up-and-coming ecosystem.
Peer-reviewed: The Ouroboros protocol is the only consensus mechanism in the crypto world that has been peer-reviewed. What this means is that experts in the field who are not directly involved in the project at hand – in this case, the Cardano network – have extensively researched the scheme and have concluded that it delivers what it promises.
Top scholars Aggelos Kiayias, a cryptographer who holds a Ph.D. from the City University of New York, and Bernardo David, who holds a Ph.D. in Computer Science from the Tokyo Institute of Technology, are two of the professionals who have reviewed and issued research reports about the Ouroboros protocol.
Despite the recent crypto winter, since 2020 started, Cardano has delivered gains of 253.3% to investors who have held on to their tokens until now.
Even though Solana (SOL) has delivered stronger gains during that same period, a network that fails to operate uninterruptedly 24/7 is eventually doomed to succumb to more trustable and resilient projects, meaning that those gains may eventually evaporate if more incidents similar to the one that occurred days ago keep affecting the network’s performance.
All things considered, Cardano may not be the winner in the short run, but it does have stronger fundamentals that may make it the long-term winner in the race to become a feasible substitute for Ethereum.
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Read More:Cardano Keeps Climbing – Why ADA is a Better Buy Than SOL?