Any new cryptocurrency entering the market draws a direct comparison
Any new cryptocurrency entering the market draws a direct comparison from the pioneer Bitcoin. Now, being an open source project, Bitcoin paved the way for other cryptocurrencies to not only mimic it but also improve on its certain limitations, like the slow transaction speed, high energy consumption, and a higher transaction fee.
Cardano is one such digital asset which has taken an academic approach towards building its network. In this article we will look at various aspects and decide upon the debate, Bitcoin Vs Cardano – Which one is Worth More?
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What Cardano Does Better Than Bitcoin?
Cardano (ADA) works on two separate layers, the settlement layer which help the network users to transfer ADA tokens from one wallet to another, while the computational layer helps the users to get access to smart contracts.
Most of the cryptocurrencies only make use of one layer, while the layer system in Cardano helps it resolve scalability and adoption issues faster than anyone else.
The two-layer system allows its user to create soft forks, which is next to impossible in most of the other cryptocurrencies.
Cardano makes use of Proof of Stake (PoS) instead of Proof of Work(PoW), which allows faster transaction rates at minimal cost. The network also makes use of smart contracts for various purposes which is not the case for Bitcoin.
How Does Consensus Algorithm of Cardano Help it Trump over Bitcoin?
The Proof Of Work consensus in Bitcoin does not give any idea on who would block the next block, thus helping the hoarders to pan out Pump and dump schemes to manipulate the market.
Cardano realized the limitations of Proof Of Work used by Bitcoin and started using the Proof of Stake consensus, making it unmineable, and the network takes it upon itself to maintain the 45-Billion ADA tokens distributed in the cryosphere.
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Cardano Vs Bitcoin: Which is Better?
Cardano does many things better than Bitcoin, thanks to its novel academic approach, the focus is to make the network free from many uncertainties and issues faced on the Bitcoin network. Be it slow transaction speeds or the comparatively higher transaction fee.
Cardano was created to compete against the Bitcoin and trump over its limitation. There are various things which Cardano does better than the Bitcoin, we will list a few below.
- Better Transaction speed and minimal transaction fee.
- Safer data storage than Bitcoin and Ethereum.
- ADA token’s multi-layered processing system allows it to be used as currencies or storage facilities for contact information
- reduce charges that are imposed by different exchange platforms.
- Permit faster and efficient cross-border transactions
- Remove third-party risks like losing some cryptos as a result of the involvement third-parties.
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Is Cardano Worth the Investment?
Yes, the futuristic crypto is still under development, but the team behind the network are focused on making sure that the final product is worth the wait. The development team behind the network has a very scientific approach, and they have added multiple layers to avoid any nuisances which might plague the network completely.
While Bitcoin can only be used as a form of financial exchange, Cardano focuses on creating a complete ecosystem of technology and tokenization, just like Ethereum. Once the platform is complete, it would be the best altcoin to the Ethereum network.
Although there is a massive gap in terms of market capitalization and trading prices, Cardano would still serve as a better investment option as the volatility factor can be countered with evolving tech.
Conclusion
Cardano has a great team of developers and community members continually trying to make the network better. Its comparison with Bitcoin is understandable as it was created with the purpose of creating a better network, by counting all the issues faced by the Bitcoin network.
Crypto Markets are subjected to high volatility rates swinging the prices in or against an altcoin in a matter of a couple of hours. Whether Cardano becomes more slothful than the Bitcoin, can’t be said with assurance, but it does have all the potential and resources to trump Bitcoin.
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