“Blockchain is moving beyond cryptocurrency, and it’s worth paying attention – especially since successful prototypes show that blockchain, also known as distributed ledger technology, will be transformative.”
Both Cardano and Polkadot are Proof of Stake (PoS) blockchains. Their aim for decentralized applications is the same but follows different architectures. They both are rated as one of the top currencies in the crypto world.
Key Takeaways
- Cardano is a decentralized blockchain platform that allows for the creation of smart contracts and decentralized applications. At the same time, Polkadot is a heterogeneous blockchain network that allows different blockchains to connect and communicate.
- Cardano uses a proof-of-stake consensus algorithm, while Polkadot uses a unique sharded multichain architecture called the Polkadot Parachain.
- Cardano strongly focuses on security and formal verification, while Polkadot focuses on interoperability and scalability.
Cardano vs Polkadot
Cardano is a decentralized, open-source blockchain platform that was created in 2017 by IOHK (Input Output Hong Kong), a blockchain research and development company. Polkadot is a next-generation blockchain platform that aims to provide a more scalable infrastructure for decentralized applications.
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Cardano is a third-generation blockchain platform. It has been 100% decentralized, making it safer and more reliable than other cryptocurrencies.
Polkadot is a decentralized ecosystem of blockchains. It means that it links a collection of different blockchains into a single network.
Comparison Table
| Parameters of Comparison | Cardano | Polkadot |
|---|---|---|
| Another name | Cardano ADA, Ethereum of Japan | Polkadot (DOT) |
| Year of origin | 2015 | 2017 |
| Developed by | Charles Hoskinson | Dr. Gavin Wood |
| Type of token | ADA | DOT |
| Popularity | Japan, Africa, and other developing countries. | Mainly in Chine until now, but it is set to be a worldwide phenomenon. |
| Cryptocurrency Process Layers | There are two layers in Cardano. | Like other cryptocurrencies, Polkadot has only a single layer. |
What is Cardano?
Cardano is a type of cryptocurrency that was first launched September in the year 2017. It has taken almost two years of development before launching it.
Cardano is considered one of the most undervalued cryptocurrencies in the world. The main advantage of this cryptocurrency is of technical competency that it provides.
Cardano claims to be the third generation of cryptocurrency. The first one being Bitcoin, the second Ethereum, and now Cardano.
What is Polkadot?
Polkadot is a network protocol that was developed by Gavin Wood, a co-founder of a popular cryptocurrency Ethereum. The project was organized by Web3 Foundation.
Polkadot was the most successful investment in cryptocurrency for the year 2020. The thing that separates this particular protocol from the others is the advantage of scalability.
People are now rapidly buying this particular cryptocurrency with the thought of getting high returns in the future. Investors or traders can store Polkadot currency in some mobile wallets as well.
Main Differences Between Cardano and Polkadot
- Cardano is currently popular in Japan, Africa, and other countries, which are still in developing stages, while Polkadot aims to be more widespread and is currently popular in the country of China.
- Cardano requires less involvement from the investors during its trading, the people who purchase them save them to watch the cryptocurrency grow in the future.
- https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3188374
- https://tradingstrategyguides.com/cardano-cryptocurrency-strategy/
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
