ALGO vs ADA compare

ALGO vs ADA: An Overview

Algorand and Cardano are low-cost assets that are of great value to the decentralized finance sector. ALGO and ADA have their own features, application fields and acquisition methods. Being a multi-functional and promising tokens, they are of interest to both developers and investors. ALGO vs ADA comparison will help to define both the benefits and those facets in which one token is inferior to another.

ALGO Basics

Algorand is quite demanded cryptocurrency among merchants, ordinary users and investors. Its ecosystem offers many DeFi, NFT and Web3 services, as well as solutions for the traditional economy. The sustainability-focused project promotes carbon neutrality by offsetting the minimum carbon footprint that validators leave, as well as partnering with ClimateTrade S.L. 

The ALGO token is listed on many exchanges and can be purchased with other altcoin. Algorand was built for riskless and rapid payments using blockchain tech, as well as for long-term and short-term investments. The price of Algorand is 0.399913333333.

How Does Algorand Work?

The blockchain trilemma: performance, scalability and security is solved in the Algorand project through the Pure Proof-of-Stake (PPoS) consensus mechanism and a number of other technologies.

Algorand has managed to achieve a high level of decentralization and security by secretly and randomly choosing validators, which can be anyone who holds at least one ALGO coin in their wallet.

The Algorand network architecture includes more than 120 relay nodes, due to which its throughput allows processing 1000 transactions per second. Transactions on the network consume little energy and do not charge high fees.

The blockchain uses the Algorand Virtual Machine (AVM) and programming languages such as TEAL and Python to write smart contracts and decentralized applications.

ADA Basics

Cardano is a fairly popular crypto among traders, ordinary users and investors. In addition, its two-layer platform allows the development and launch of DApps, which makes it in demand among developers of solutions for decentralized finance. 

The project was created by a team of professional mathematicians and a programmer. The ADA token is ranked among the top 10 digital assets in the world and can be swapped on many exchanges, as well as Godex. The price of Cardano is 1.035233333333.

How Does Cardano Work?

While most cryptocurrencies use a single-layer architecture, the Cardano platform consists of two layers: 1st is the Cardano settlement layer (CSL), designed for transactions with the ADA token; 2nd is the Cardano Computation Layer (CCL) required to support smart contracts, DApps and NFTs.

Security, as well as the network's ability to process transactions, is provided by the Ouroboros protocol, which is based on the Proof-of-Stake (PoS) consensus algorithm. There are no miners in Cardano, but there are validators who stake their ADA coins, verify transactions on the network and receive a reward for this. Validators are selected based on a complex mathematical model.

Similarities between  ALGO and ADA

DeFi

The platforms of both projects, Algorand and Cardano, support smart contracts and DApps development, which means they contribute to the involvement of the decentralized finance sector.

Value

At the moment, both ALGO and ADA are considered low-cost assets. Algorand is valued at 0.399913333333, while Cardano is valued at 1.035233333333. The low value makes the coins affordable for investors who do not have a big budget.

Limited Coins Supply

ALGO and ADA have a limited supply, i.e. the maximum number of coins that will ever exist.

Scalability

Both Algorand and Cardano have very high-performance blockchains that can process a large number of transactions quickly. Algorand achieves this efficiency through its two-tier architecture, while Cardano achieves great results through the Ouroboros mechanism.

Energy Consumption

To be more energy efficient, projects use their own versions of the Proof of Stake consensus mechanism.

Difference between Algorand and Cardano

For those who are faced with the choice of investing in Algorand or Cardano, reviewing the main differences presented below will help make the right choice.

Consensus Mechanism

Although both projects use the Proof of Stake consensus mechanism, their versions differ. Algorand uses Pure Proof-of-Stake (PPoS); Cardano - PoS-based Ouroboros.

Underlying purpose

While Algorand aims to improve scalability and sustainability, Cardano's main goal is to create a vast ecosystem for developing decentralized applications.

Handling Scalability

Both Algorand and Cardano are considered highly scalable. To achieve this, Cardano uses innovative solutions and advanced programming languages, through which developers can improve the code and contribute to network performance. Algorand on the other hand uses technologies such as pixel digital signature scheme, Vault system for efficient use of data storage, self-validating technology for fast transaction verification.

Security

Algorand and Cardano use various protection mechanisms and have different approaches to securing their networks. Algorand monitors security at both the network and consensus levels. Its network has the ability to recover during a split, allowing nodes to rebuild without interrupting the blockchain. At the consensus level, Algorand prevents attackers from corrupting enough users to take control of block generation. Cardano, on the other hand, uses the Ouroboros protocol for security.

Smart contract

Both projects have smart contract features, but use different languages to write them. Cardano smart contracts are written in highly robust programming languages called Haskell and Plutus. While Algorand uses the Transaction Execution Approval Language (TEAL).

Decentralization

The Algorand and Cardano projects are decentralized. However, Algorand aims for 100% decentralization, without any point of control or central authority. Therefore, a system of secret and random selection of validators for their network was developed. Cardano, on the other hand, strives to comply with current regulatory requirements and does not exclude, if necessary, cooperation with the central government. This approach makes the Cardano blockchain less decentralized.

Circulating supply

Circulating supply of Algorand is 0 ALGO coins and a max. supply of 0 ALGO coins, while Cardano has a circulating supply of 0 ADA and a max. supply of 0 ADA coins.

Trading volume

The 24h trading volume of Algorand is 31523392.036001936000, while the volume of Cardano is 113677467.207360860000 per 24 hours.

Should You Buy ALGO or ADA?

Since both coins are changeable, the answer to this question may be different depending on the situation on the crypto market. Consequently, you need to check the current data

Main Takeaways: Algorand vs Cardano

Both ALGO and ADA are decent ambassadors of the crypto world. To decide which token to invest in at a certain moment, you should track it on the crypto market, study and compare its substantial qualities.