Visa Cryptocurrency Stock

Solana vs. Cardano: Which Is the Better Buy?

Solana vs. Cardano: Which Is the Better Buy?
Written by publishing team editor Eric Bleecker, lead crypto consultant at The Motley Fool’s Bernd Schmid, and contributor Chris MacDonald discuss the bull case behind Solana (CRYPTO: SOL) And Cardano (CRYPTO: NO) And any cryptocurrency may appear in the end. This clip is from “The Crypto Show” in Backstage pass I was Registered on November 4th.

Eric Blaker: So let’s move on to Solana.

I know there is a lot of interest. I feel like every week we have a lot of questions about Solana. The returns are definitely there. Last year at this point would probably be a 150 foldable. It’s seeing a lot of traction, especially in the NFT space.

As you may have noticed in this light, it is now the fourth largest cryptocurrency that has surpassed Cardano before the show, valued at $72 billion. The popular NFTs on the platform have attracted a lot of attention, but on the whole they promise much higher transactions per second. Then the blockchains compete, they are currently at the set targets at a volume more than 10,000 times larger than what Bitcoin itself can handle. Also the cheapest transactions.

If you are looking to buy NFT through Ethereum (CRYPTO: ETH) And you have a $100 gas fee and Solana parts of the center or whatever it may be at the moment, you can see why that’s attractive to the broader space.

I think talking about some Solana is really cool because it definitely shows how fast technology is moving into space. It takes a completely different approach than other block chains. Maybe we can only talk about Solana. Where do you start to wrap your head [laughs] In this type of project? [laughs]

Bernd Schmid: It did really well and it was so interesting that it overtook Cardano because Solana has already made progress.

In fact, I know where to start because they do something like what I’m saying, drastically different from other blockchains, at least according to my understanding, and that’s something I’m also one of those many things that I really want to understand better. It was a communications engineer who came up with this idea, and he who conceived this idea. He believed that the problems that the blockchain faced or that they were trying to solve were very similar to the problem that communication networks need to solve, such as the cellular network. It’s like having multiple cell phones, cell phones, communicating through one tower, accessing the same frequency band, etc. That’s where he came from, and then he designed something based on the shared communication networks already running in the blockchain.

Not sure if he calls it that way. But in the white paper they wrote, they call it proof of history. This is basically an algorithm that makes it possible, according to my understanding, that in the absence of distributed nodes as in a blockchain you have multiple nodes, it could be tens of nodes, hundreds of thousands or even more nodes that all want to produce blocks to the blockchain and validate. They need to communicate with each other.

What Solana has achieved with this seemingly historical evidence is that this competition is happening on a single entity that needs to do that, and there is no need for communication between these nodes to process this and that makes it really fast to process these transactions.

Apparently, security does not suffer from this. The proof-of-date algorithm I’m trying to present, actually comes before consensus is built in the network.

I don’t yet understand exactly how these things interact, but basically you have to distribute a network of nodes, but in one case you can’t compute, and the next transaction to say it, and that makes it really fast. Also but this is determined, they get on a deeper level. It’s designed in such a way that the hardware that needs or handles these transactions actually has a high requirement, a lot to do with exact numbers, but I think you need 120GB of RAM, RAM to run such a node completely a lot of hard disk space and computing power In other networks, this is not the case. In fact because of that it’s also a bit less, and likely to be noticeably less central than the others.

But this huge benefit comes from this amazing speed that this network already offers today.

Eric Blaker: Just one note, I just wanted to answer a few quick questions. One crocodile tells us that he uses the support for theta (CRYPTO: THETA). Thank you for that alligator. Marko adds, Blockchain Capital is a much less big investment company than multiple startups, big money. I just wanted to get those because it was out of our last conversation.

Now, Chris, two weeks ago we introduced five of your favorite cryptocurrencies and you had Cardano and Solana on them. I’m intentionally going to make a little conflict here because it makes it more interesting. Bernd, I think your point is that you specifically prefer Cardano over Solana. Chris, what is your argument perhaps for investors looking for alternatives to Ethereum to own both?

Chris McDonald: I think as Bernd said, there’s a reason to get past Solana Cardano, maybe it’s worth it, I think touching the proof of history is really important, in how Solana is able to have the speed that you have and be able to in theory. Process more than one transaction Visa (NYSE: V) At a given time per second is incredible. In a split second, as Eric reported.

Solana’s post has really helped with speed and cost. Perhaps just to build a little on what Bernd said about proof of history as I understand it, when nodes validate the blockchain, they need to do it in order.

What Solana did was provide the timestamps of the equation. When 1,000 transactions are submitted, there is a specific time that each transaction was placed, so there is no need to wait for the transactions that were submitted first for the nodes to be able to process them in order. This is an absolutely amazing innovation in space. It will likely be copied in the future, but Solana is the leader.

I think you mentioned that many decentralized applications that are built on top of Solana now like Solana NFT Marketplace, are just getting started and there is a reason for that. In addition to the NFT space, there are many other opportunities that Solana opens up for the market. It is now among the fastest and cheapest blockchain networks, so this is a huge competitive advantage.

I think there is reason to be optimistic about both Cardano and Solana, but there is a strong argument to be made that Solana can advance much faster and much higher.

Eric Blaker: What would the argument be in your opinion for Cardano, if only because I was a very optimistic description of Solana himself, but I’m just curious to know the Cardano pros in your comparison.

Chris McDonald: I think Cardano is interesting to me about how the network is going to expand. Cardano is interesting in that it allows for more nodes as the network grows, essentially allowing the blockchain to be broken down into smaller pieces, and each of them, as the blockchain grows.

In theory, Cardano can increase and speed up his speed. Both are very fast in this regard. I think the argument that can be made with Cardano is the interoperability of the network. It is able to communicate with other blockchains using the KMZ gene-side protocol. This is interesting because more crypto projects are being created across many blockchains.

We’re moving, I think, from an isolated world of crypto to an integrated world, so Cardano is more of a pioneer in this field and so there are strong arguments to be made for both of them for sure.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

About the author

publishing team