“Everything will be tokenized and connected by a blockchain one day.” This is a quote by Fred Ehrsam, the xo founder of the cryptocurrency exchange Coinbase. Now that 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.
Key Takeaways
- Cardano and Binance are both cryptocurrency exchanges.
- Cardano primarily focuses on developing blockchain technology, while Binance offers a wider range of cryptocurrency services.
- Cardano’s cryptocurrency is ADA, while Binance’s cryptocurrency is Binance Coin (BNB).
Cardano vs Binance
The 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 the POSA protocol, which 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 was 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 asset exchange. Investors and traders use it 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
| 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 platform’s main aim is to maintain the perfect balance between the users and 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 started in 2015, the company took some time to launch, to be approximately 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 because a part of it goes to the people who run it. A couple of independent organizations regulate the maintenance of the site.
Cardano has its own currency, which is called the 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 had to move from that 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 which 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 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), is 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 at processing transactions than Binance. On average, Cardano takes 5 to 7 minutes to complete a transaction, while Binance takes 30 to 60 minutes 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 POS technology.
- 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/
Last Updated : 28 June, 2023
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Sandeep Bhandari holds a Bachelor of Engineering in Computers from Thapar University (2006). He has 20 years of experience in the technology field. He has a keen interest in various technical fields, including database systems, computer networks, and programming. You can read more about him on his bio page.
The distinction between the Proof of Stake protocol used by Cardano and the Proof of Stake Alliance mechanism used by Binance is quite interesting.
The detailed overview of Binance’s platform and the development of Binance Smart Chain provides valuable insights into their cryptocurrency offerings.
The provided details about Cardano’s platform, such as its focus on a balance between users and regulators, gives a deeper understanding of this cryptocurrency.
The information about the goals and native tokens of Cardano and Binance is very informative.
Very informative article! It’s important to understand the differences between Cardano and Binance’s platforms.
I found the information about Cardano’s withdrawal fees and transaction times very enlightening.
The comparison table offers clear and concise details about the founders and organization behind each platform.
This article provides comprehensive details about the key factors that differentiate Cardano and Binance. It’s crucial information for those interested in cryptocurrency investments.
I appreciate the comparison between Cardano and Binance. It helps to clarify their differences and strengths.
I appreciate the detailed overview of Cardano and Binance. It’s important to note how ADA and Binance Coin differ.