“Everything will be tokenized and connected by a blockchain one day.” This is a quote by Fred Ehrsam, the xo founder of cryptocurrency exchange Coinbase. Now, when the cryptocurrency has become the most popular form of investment for the future, people are getting as much knowledge about this topic as they can. But with this, the competition in this market is also increasing day by day.
Cardano and Binance are big players in this competition. They are platforms of exchanges used by people who want to trade their digital assets. Protocols like POW (Proof of Work) play a major role in the process of these digital assets. They are used by different investors or traders, and even beginners who are new to the cryptocurrency market. Since they both are pretty big companies, people consider them trustworthy.
Cardano vs Binance
The main difference between Cardano and Binance is that Binance is that the native token of Cardano is ADA and the native token of Binance is BNB and BSC. Also, Binance goes through the Proof of Stake protocol while Cardano follows POSA protocol that is the Proof of Stake Alliance mechanism.
Cardano is a Proof of stake and Ouroboros protocol following blockchain. The platform can be used to create and run Dapps and Smart contracts. It follows an open-sourced format. Since the platform is created with the help of engineers, mathematicians, and other industry experts, it is trusted by investors and traders.
Binance is an online platform for digital assets exchange. It is used by investors and traders to trade their transactions of cryptocurrencies. It provides a wallet to its users where they can store their electronic investments. The main aim of the platform is to achieve a High Assurance Code.
Comparison Table Between Cardano and Binance
| Parameters of Comparison | Cardano | Binance |
| Founder/Founders’ Name | Charles Hoskinson. | Changpeng Zhao, also known as CZ, and Yi He. |
| Year of discovery | September 2015 | 2017 |
| Created by | Input-Output Hong Kong (IOHK), Cardano Foundation, and EMURGO. | Changpeng Zhao |
| Organization based in | Zug, Switzerland | Cayman Islands |
| Native token | ADA | Binance Coin (BNB) and Binance Smart Chain (BSC). |
What is Cardano?
Cardano claims to be the third generation of blockchain. The main aim of the platform is to maintain the perfect balance between the users and the regulators. The founder Charles Hokinson is also the co-founder of one of Cardano‘s competitors, Ethereum. The code of the platform is written in Haskell.
Even though the development was started back in 2015, the company took some time to launch, to be approx two years. Cardano was launched in 2017. On the platform, the withdrawal fee for a transaction to be taken is 0.16-0.17 ADA. The transaction fees are higher compared with other similar platforms, the reason being a part of it goes to the people who run it. The maintenance of the site is regulated by a couple of independent organizations.
Cardano has its own currency, which is called ADA coin. A single transaction taken on the platform takes about 5 to 7 minutes on average. The ultimate goal of the company is to make the transactions of cryptocurrencies instant, free and unlimited in number for the users.
What is Binance?
Binance is a platform based on blockchain. It is a well-known cryptocurrency exchange. The platform was earlier placed in China but has to move from the place because of the constant regulations surrounding cryptocurrency and its uses. The key people behind this concept are Changpeng Zhao and Yi He. Zhao now serves as the CEO of the company, while Yi He has taken the role of CMO of the platform.
The native token for Binance is Binance Coin that is depicted with a “BNB” symbol. It was earlier an ERC20 token. It is based on the Binance chain of the Binance blockchain. One can buy them even from the stablecoins that are listed on the platform.
In September of 2020, the company released another cryptocurrency called Binance Smart Chain (BSC). It is the second cryptocurrency by the exchange, the previous one, Binance Coin (BNB), getting quite popular.
Main Differences Between Cardano and Binance
- The native token of the Cardano platform is ADA. On the contrary, the native token of Binance is BNB (Binance Coin) and BSC (Binance Smart Chain).
- Binance is the bigger exchange if to be compared with Cardano.
- Cardano is faster to process transactions than Binance. On average, Cardano takes about 5 to 7 minutes to complete a transaction, while Binance takes about 30 to 60 minutes approximately to complete an exchange or withdrawal transaction.
- The transaction fees on Binance are only 0.1%. To 5%, depending on the type of transaction. This is pretty cheap compared to its competitors. Cardano’s transaction fees are also higher than those of Binance.
- The blockchain of Binance is a Proof of Stake (POS) mechanism, while Cardano follows POSA, which is Washington-based Proof of Stake Alliance (POSA). Proof of Stake Alliance brings legal and regulatory clarity to the POS technology.
Conclusion
The blockchain is a very vast concept, a person who is beginning in this field must have the proper knowledge, and in order to achieve that, they need to gather as much as information they can get their hands on, whether it be the basic cryptocurrency or the various technologies used in the process. Cardano and Binance are similar as they use variations of POS protocols while other cryptocurrency exchanges use POW mechanisms, but they do have certain differences as well.
Cardano is said to still be in the developing stage, and it is predicted that once it is fully finished, it will change the market. For now, It is a nice alternative to the popular blockchain Ethereum. On the other hand, Binance is considered one of the best cryptocurrency exchanges that hold the title of the largest cryptocurrency exchange as of April 2021.
References
- https://books.google.co.in/books?id=p43fDwAAQBAJ&pg=PT66&dq=cardano+coin&hl=en&sa=X&ved=2ahUKEwiRktv09vjwAhXPbn0KHaumDLQQ6AEwAnoECAYQAw#v=onepage&q=cardano%20coin&f=false
- https://tradingstrategyguides.com/how-to-buy-cryptocurrency/