Which of these two cryptocurrencies will stand out this year? Cardano or Polkadot?
Interest in cryptocurrency is continuing its rise with the Bitcoin (BTC) price breaking past the $60,000 mark again. Coinbase is also going public next week, making it the first exchange to do so. Both Cardano (ADA) and Polkadot (DOT) also have seen an unprecedented amount of development and adoption over the past year. Slowly creeping up to the top of CoinMarketCap‘s rankings. They are right below each other in terms of market capitalization and both are among the top ten cryptos.
Cardano blockchain hosts smart contracts and applications similar to Ethereum. What makes Cardano unique is its double-layered architecture which enables more flexibility for its smart contracts. In short, it aims to overtake ETH in the future or take a huge part of its future business.
Polkadot on the other hand aims to efficiently connect individual blockchains into a single unified network, all while retaining low transaction fees between the different layers. It has been known to be called “A network of interconnected parachains”.
Cardano is a proof-of-stake (POS) blockchain, the first to be founded on peer-reviewed research. It was founded by Charles Hoskinson, who is also the co-founder of Ethereum. Cardano has been gaining huge traction in recent months and it’s having a spectacular year so far.
The altcoin ended 2020 at a measly $0.18, but it’s been one of the biggest winners thus far in the crypto space.
Cardano is also is now available to buy and trade on the largest American cryptocurrency exchange platform that is set to go public next week, Coinbase. Besides, one of the biggest trends right now is non-fungible tokens (NFTs). And ADA founder Charles Hoskinson aims to capture a slice of the pie. Cardano has a well-known founder, an active development roadmap, and a number of potentially valuable features.
Skeptics will argue that there’s still little to show.
The name may seem a bit funny, but DOT is no laughing matter. Over the past year and a half, it has gained tremendous support from blockchain devs. Polkadot is a blockchain platform that allows its individual blockchains (parachains) to interoperate with other parachains on the network. Through its parallel processing, it has the potential to address common core issues associated with blockchains, which appear to work in a more efficient manner compared to Bitcoin or Ethereum.
Polkadot is also founded by another co-founder of Ethereum, Gavin Wood.
Kusama also runs on Polkadot. The network is an experimental development environment for teams who want to move fast and innovate on Kusama or prepare for deployment on Polkadot. It reduces fees and deployment issues for projects that are looking to get in the DeFi space. Kusama is a scalable network of specialized blockchains built using Substrate and nearly the same codebase as Polkadot.
Polkadot is a scalable heterogeneous multi-chain. This means that, unlike previous blockchain implementations which have focused on providing a single chain of varying degrees of generality over potential applications, Polkadot itself is designed to provide no inherent application functionality at all. Rather, Polkadot provides the bedrock “relay-chain” upon which a large number of validatable, globally coherent dynamic data structures may be hosted side-by-side.
It’s not hard to see how both Cardano (ADA) and Polkadot (DOT) creeped up among the top 10 cryptocurrencies by market cap now.
Both networks have great potential in integrating blockchains. If you believe Cardano could eventually display its strengths through lower transaction fees and higher-speed tech, Cardano could be the next Ethereum.
On the flip side, if Polkadot can demonstrate sustainability in its operations, we may see an influx of developers and investors to the platform. And that is likely to see more investors jumping into Polkadot.
Both cryptocurrencies are likely to remain as popular bets in the near term and are solid names to potentially spread your bets on if you are looking to diversify away from Ethereum and Bitcoin.