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Cardano (ADA) Vs. Algorand (ALGO): How Do They Differ?

Cardano (ADA) Vs. Algorand (ALGO): How Do They Differ?

On the surface, Cardano and Algorand might seem similar. But there is more to it than meets the eye. In this article, you will learn what.


Ethereum is by far the most dominant altcoin that has helped the cryptocurrency shape the way it is today. There are countless applications built on top of the network and showed the world the possibilities of blockchain technology. However, it is not without problems. Due to its popularity, Ethereum often experiences network congestion and high gas fees. Trying to solve those problems several competitors have surfaced. The two most popular alternatives are Algorand and Cardano. While they look similar on the surface, they have a few differences that are important to be aware of if one looks for an investment opportunity in either of these projects.

Algorand (ALGO) and Cardano (ADA)

Algorand was founded in 2017 by Turing Award-winning computer scientist Silvio Micali. The platform is built on a proof-of-stake consensus algorithm, which ensures high security and scalability. The Algorand blockchain uses a unique Pure Proof-of-Stake (PPoS) consensus mechanism, which makes it highly resistant to attacks such as the 51% attack that can threaten other blockchains. The Algorand blockchain is capable of processing over 1,000 transactions per second (TPS), which makes it one of the fastest blockchain networks in existence. Algorand’s focus is on building a blockchain infrastructure that can support high-speed transactions and large-scale projects, which makes it a popular choice for enterprises and institutions.

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In contrast, Cardano was founded in 2015 by Charles Hoskinson, one of the co-founders of Ethereum. Cardano is also built on a proof-of-stake consensus algorithm, which is designed to be highly secure and energy-efficient. The Cardano blockchain uses the Ouroboros consensus mechanism, which is unique in that it is a provably secure proof-of-stake algorithm. The Cardano blockchain is also capable of processing over 1,000 TPS, making it a viable option for large-scale projects. However, Cardano’s focus is on building a blockchain infrastructure that is highly adaptable and can evolve over time. This is achieved through the platform’s layered architecture, which enables the development of customized blockchain solutions for specific use cases.

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Key differences

Governance: Algorand is a pure democratic system, which means that every user has an equal say in the decision-making process. This approach to governance is designed to ensure that the network remains decentralized and free from the influence of centralized entities. Cardano, on the other hand, uses a hybrid governance model that combines elements of both democracy and hierarchy. This model allows for more efficient decision-making while still maintaining a high level of decentralization.

Transaction speed: Algorand outperforms its rivals by 4.5 seconds per ALGO coin. The current system can handle up to 1300 transactions per second (TPS), and it is anticipated that it will eventually reach 3000 TPS. Cardano on the other hand is a lot slower with 250 TPS. Nonetheless when compared to Bitcoin with 5 TPS, and Ethereum with 13 TPS, Cardano is still nearly 25 to 30 times faster than most of the large cryptocurrencies.

Gas fees: An important problem that both projects try to solve is to reduce transaction fees. Algorand is the clear winner as the fees that are close to 0 USD. Cardano charges 0.17 ADA, which depending on the price varies. Although both are significantly lower than Ethereum, Algorand comes out on top.

In terms of programming languages, Algorand supports multiple programming languages, including Java, Python, and Go. This makes it easier for developers to create smart contracts and decentralized applications (dApps) on the Algorand blockchain. Cardano, on the other hand, is designed to be highly modular and flexible, which means that developers can use a wide range of programming languages to create dApps and smart contracts. Cardano’s approach to programming languages is designed to ensure that the platform remains highly adaptable to changing market conditions.

Closing thoughts

On the surface both Algorand and Cardano seem to be focused on solving similar problems, that focus on providing a solid platform for developers to innovate on in an efficient way. Even so, each project approaches the problem with their own philosophy that eventually results in a few noticeable differences for the end user. Both projects have their advantages and their disadvantages, and while the above could be interpreted as that one project has outgrown the other this is not necessarily the case. Both projects focus on specific solutions to different problem sets, which makes them unique and popular in their own way.

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Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.