The advent of Cryptocurrency has made the technology world come up with various exchange platforms. A few are public exchanges, while a few or peer. The exchange platforms are chosen based on their exchange time and the commission involved in the same.
Many business models have evolved with these exchanges. Say, for example, few platforms is a hub of exchanges while a few offer an only person-to-person exchange. Loopring and Cardano fall under such category. They both function on similar lines while they have significant differences.
Loopring vs Cardano
The difference between Loopring and Cardano is like basic functionality. Loopring is a decentralized, audited and non-custodial exchange platform, while Cardano is the decentralized blockchain platform. The fact is, in Loopring, there is no need to trust any user during the exchange as the network pools and exchanges effectively. It is also observed that Loopring and Cardano both are secured in their operations and have high-level security features.
Loopring is an exchange platform that has several exchange protocols available. It is an Ethereum based platform that works as a payment platform as well. Loopring as such incentivizes the users who create new crypto-asset exchanges. This is a platform that handles the settling of traders in a relatively quick time.
Cardano is a smart contract platform. It uses ADA as the Cryptocurrency. Cardano being another blockchain, is better than Bitcoin for its protocol management. The mechanism of the consensus called Ouroboros, the cryptocurrency called ADA to be sent and received with utmost security. Ideally, it became
Comparison Table Between Loopring and Cardano
|Parameters of Comparison||Loopring||Cardano|
|Type||Loopring is a token.||Cardano is a coin.|
|Hash Algorithm Uses||Loopring works on Ethereum token as the algorithm.||Cardano uses Ouroboros as the Hash algorithm.|
|Transaction Speed||450 Seconds||50 Seconds|
What is Loopring?
Loopring is an exchange protocol that is based on Ethereum. It allows the users to exchange their assets using various exchanges. Loopring is indeed a decentralized exchange protocol. Loopring helps in facilitating decentralized exchange using two major types of technologies.
- Order Matching Technology
- Ring-Sharing Technology
The easier way to understand its functionality is, the platform allows orders from many exchanges. Such orders are called pool orders. Once maximum orders are pooled, the technology shall support the platform to fill the orders. The order filling is done by matching the orders with the order books that participate in the Loopring network.
The salient features of Loopring are
- The trading fees are pretty low
- The liquidity is sharable
- Maximum Flexibility offered
- Highly secured platform
As such, the platform offers both decentralized and centralized exchanges to take part in the network. The investors are indeed benefitted as they do not have to cross-check with any other exchanges.
More importantly, Loopring is a blockchain-based network. That easily means that any platform that has smart contracts can be integrated with Loopring. Right now, the two integrated platforms are
The transaction speed with Loopring is slower compared to many of the similar platforms. The security system in Loopring is impeccable, however not as powerful as Cardano. The integrated platforms have a seamless exchange without any hassle. However, traders need to wait a bit patiently while the exchange happens.
The maximum supply of Loopring is 1374513896.
What is Cardano?
Cardano is a blockchain platform for the general public. It is an open-source platform that is decentralized too. The consensus of Cardano is achieved using Proof of Stake (PoS) against Proof of Work. This is considered excellent as the consensus mechanism of PoS works on the validators’ associated quantity of the designated cryptocurrency.
Cardano was found and established by the founder of Ethereum in the year 2015. Ouroboros is the PoS of Cardano. This is a protocol that runs with permissions and also without permissions of the Blockchains. As such, the Ethereum and Bitcoins work on the Proof of Work (PoW) protocol. The energy consumed by PoS is vastly less compared to PoW.
ADA is the settlement layer of Cardano. Like Bitcoin, ADA monitors all the transactions. Over this ADA is the second layer called the Computation layer. This is the one that helps in generating smart contracts and applications. These contracts and applications run on the Cardano platform, making it an effective platform for peer to peer exchange.
The reduction in energy consumption is the most excellent feature of Cardano. This is exceptionally done by the platform by eliminating the hash power. The main applications of Cardano are in
- Identity Management
The first application helps in collating the data from multiple sources. The tracking and auditing of the products are done by Traceability. The maximum supply of ADA is 45000000000, and ADA is never minable.
Main Differences Between Loopring and Cardano
- The main difference between Loopring and Cardano is, loopring is an exchange platform for various coins while Cardano works on Ada as its cryptocurrency. Both work on Blockchain, though, but this difference makes it unique in its functionality.
- The algorithm used in Loopring is Ethereum Token, while the Hash algorithm of Cardano is Ouroboros
- The transaction time taken in Loopring is more compared to Cardano, where it is very fast and secured. Cardano ideally takes 50 seconds maximum as its transaction speed.
- Loopring works on Ethereum protocol, while Cardano works on PoS by Ouroboros.
- The energy consumption of Loopring is more compared to Cardano as it uses Proof of Stake as its mechanism of consensus.
There are various factors to be considered as we choose an exchange platform. While Cardano is more secured, it is ideally a peer-to-peer exchange pattern. This requires either party to be secured. But in the case of Loopring, it pools in all the orders and matches is accordingly concerning the orders placed. That means to say, you shall certainly not even know whom you are transacting with. This feature ideally answers the slow response time in the case of Loopring while Cardano is faster.