“Blockchain is moving beyond cryptocurrency, and it’s worth paying attention – especially since successful prototypes show that blockchain, also known as distributed ledger technology, will be transformative.” It is a quote by a famous business executive Julie Sweet, and it really speaks to the importance of cryptocurrency in today’s world.
Both Cardano and Polkadot are Proof of Stake (PoS) blockchains. Their aim for decentralized applications is the same but follows different architectures. They both are rated as one of the top currencies in the crypto world. They are said to be the next Ethereum of cryptocurrencies. Both of these cryptocurrencies are not that old and are rather new in this field but seeing they are rapidly growing just shows their potential for the future.
Cardano vs Polkadot
The main difference between Cardano and Polkadot is that Cardano has a better stake pool than Polkadot. A stake pool is a node that contains combined stakes of various investors. The supply of Cardano tokens is a lot more than the supply of Polkadots. Also, Cardano has a two-layer architecture while Polkadot has a one-layer architecture.
Cardano is a third-generation blockchain platform. It has been 100% decentralized, making it safer and more reliable than other cryptocurrencies. Cardano cannot be mined but is staked being a part of the proof of stake system. Investors can invest in this cryptocurrency for both a short period of time or longer.
Polkadot is a decentralized ecosystem of blockchains. It means that it links a collection of different blockchains into a single network. Since they have the ability to para chain in their tokens, Polkadot currency has the advantages of scalability and interoperability. Polkadot is one of the most funded projects of blockchains projects in history, with an estimate of $140 million that it raised during its making.
Comparison Table Between Cardano and Polkadot
| Parameters of Comparison | Cardano | Polkadot |
| Another name | Cardano ADA, Ethereum of Japan | Polkadot (DOT) |
| Year of origin | 2015 | 2017 |
| Developed by | Charles Hoskinson | Dr. Gavin Wood |
| Type of token | ADA | DOT |
| Popularity | Japan, Africa, and other developing countries. | Mainly in Chine until now, but it is set to be a worldwide phenomenon. |
| Cryptocurrency Process Layers | There are two layers in Cardano. | Like other cryptocurrencies, Polkadot has only a single layer. |
What is Cardano?
Cardano is a type of cryptocurrency that was first launched September in the year 2017. It has taken almost two years of development before launching it. It is developed by Charles Hoskinson, the same inventor of another big cryptocurrency Ethereum. He is quite active with the Cardano community with his live streams and videos.
Cardano is considered one of the most undervalued cryptocurrencies in the world. The main advantage of this cryptocurrency is of technical competency that it provides. The transactions for this cryptocurrency are faster than the other well-known cryptocurrency like Ethereum. And it even considers itself an updated version of Ethereum.
Cardano claims to be the third generation of cryptocurrency. The first one being Bitcoin, the second Ethereum, and now Cardano. This third generation of cryptocurrency seems to improve the former generation of cryptocurrencies. IOHK, Cardano Foundation, and EMURGO are the three organizations that are responsible for the development of Cardano.
What is Polkadot?
Polkadot is a network protocol that was developed by Gavin Wood, a co-founder of a popular cryptocurrency Ethereum. The project was organized by Web3 Foundation. An app developer is allowed on Polkadot to create their own blockchain. These are known for their para chains.
Polkadot was the most successful investment in cryptocurrency for the year 2020. The thing that separates this particular protocol from the others is the advantage of scalability. The blockchain processes a fast number of 1000 transactions per second. Many developers are now going into Polkadot as they think its technology is rather more advanced than the other cryptocurrencies. It is compared with Ethereum 2.0.
It is said by investors that Polkadot is a better investment than the other newly released cryptocurrencies. People are now rapidly buying this particular cryptocurrency with the thought of getting high returns in the future. Investors or traders can store Polkadot currency in some mobile wallets as well.
Main Differences Between Cardano and Polkadot
- Cardano’s supply of its currency is more equitably distributed than the supply of Polkadot cryptocurrency.
- Cardano ADA is cheaper than the price of Polkadot until now. Thus, Cardano is preferred by people who are just stepping into the cryptocurrency field. They have more chance of investing in it as they are inexperienced.
- Cardano has a lower risk with less strict penalties for investors and moderators. In comparison to it, Polkadot has a higher risk with its purchase.
- Cardano is currently popular in Japan, Africa, and other countries, which are still in developing stages, while Polkadot aims to be more widespread and is currently popular in the country of China.
- Cardano requires less involvement from the investors during its trading, the people who purchase them save them to watch the cryptocurrency grow in the future. Polkadot, in comparison, needs more commitment from the investors during its activity as they tend to look for dApps.
Conclusion
Now, there are hundreds of choices in cryptocurrency that people can invest in for the future. Cardano and Polkadot are one of the best investments as they can be used by people who want to increase wealth creation or Investors who want to diversify their cryptocurrency investments.
Both Cardona and Polkadot seem to be a great choice for investment in cryptocurrency as they provide low cost of transactions and are efficiently faster in comparison during the process of transactions. They have the ability to suppress other cryptocurrencies but still are in their starting phase, which is one is the reasons that why neither of them hasn’t suppressed the rate or supply of Ethereum until now.
References
- https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3188374
- https://tradingstrategyguides.com/cardano-cryptocurrency-strategy/