The cryptocurrencycurrencies are a speculative asset class, but major blockchains like Solana (SOL -7.09%) and Cardano (ADA -4.81%) have fundamental advantages over their rivals in terms of sophistication and potential uses. Let’s take a look at why their innovative designs and engineering capabilities can create lasting value for investors.
With a market cap of over $20 billion, Solana is the seventh largest cryptocurrency. And it’s not hard to see why. See the article: Spanish tax authorities warn cryptocurrency investors about income tax.. The blazing-fast speed of Blockchain and its many fintech use cases could help it maintain its dominance for decades to come.
Solana is designed as a platform for decentralized applications (dApps), which are programs that use smart contracts to provide services on the blockchain. DApps extend the use of cryptocurrency beyond just storing and transmitting value. But the increase in traffic has created scalability issues for the current market leader, Ethereum.
With a transaction capacity of 50,000 per second (compared to 15 for Ethereum), Solana is better able to handle large amounts of dApp activity. And in the long run, it may gain market share from its rival.
But Solana’s developers didn’t limit themselves to dApps. They also strive for real utility in the fintech sector.
In February, the team launched Solana Pay, a peer-to-peer payment system designed to enable merchants and customers to communicate without relying on traditional financial institutions such as Visa or Mastercard. Solana Pay allows users to send and receive Solana’s native token, SOL, and other supported coins, such as the USD coin, which is pegged to the US dollar. While Solana is not the first blockchain to take over the payments industry, its top speed gives it a huge advantage over its rivals.
Cardano, also worth $20+ billion, is the eighth largest cryptocurrency, just behind Solana. Also see: Bitcoin (BTC): Here’s Why You Should Buy BTC Now And Hold It For The Long Term!. And while it can’t match its closest rival in raw technical prowess, it makes up for it with an aggressive track record of development that could help it dominate the industry in the long run.
Unlike Solana, Cardano does not have the fastest speed in the industry. With a transaction capacity of 250 per second, it manages to beat Ethereum, but hardly leads the way in blockchain technology. That said, investors should bet on Cardano’s future, not the present.
The developer, Input Output Hong Kong (IOHK), presented a phased strategy for scaling the platform. The first three phases, called Byron, Shelly and Goguen, focused on platform launch, basic design and support of digital applications. The next phase, Basho, will focus on scalability.
IOHK suggests that the technologies involved in Cardano’s Basho phase could potentially push transaction capacity to 1 million per second. But the developer emphasizes that this is an ambitious goal. And he plans to scale the platform based on demand.
Solana and Cardano appear poised for long-term success thanks to their advanced technical capabilities and active development teams.
Be vigilant and consult your financial advisor before making any investment decision. Mirror-Mag cannot be held responsible in case of bad investments. Before using any third-party service, do your own research.