- Both Cardano and Algorand are Layer 1s
- Cardano does not work
- Algorand is a sustainable green network
- Cardano does not work
Cardano Vs Algorand
What is Algorand?
Much like Cardano, Algorand is a Layer 1 network however in Algorands case it is a network that works and has a thriving ecosystem!
Algorand is the 32nd largest cryptocurrency by market cap with a total market cap of $2.2 billion and a token price of $0.32 at the time of writing this article. Algorand boasts itself as the world’s most powerful and sustainable blockchain and the first institutional grade blockchain to achieve decentralization, scalability and security while staying environmentally friendly.
Algorand uses a modified proof of stake consensus mechanism called pure proof of stake (PPoS) which allows them to be more sustainable and eco friendly than a standardized POS mechanism. The team over at Algorand explains this concept very well so I will link to their article here rather than explaining it all here.
Now time to get down to the nitty gritty technical capabilities of Algorand. Boasting transaction speeds of 1,000+ TPS Algorand is most definitely a step ahead of Cardano however they are definitely not the fastest network on the market, in saying that 1,000 TPS is very fast compared to Ethereum’s TPS of 15. Due to Algorands PPOS consensus mechanism they are capable of offering transaction fees of just $0.0004 which puts them at the very low end of transaction fees.
Algorands Asset Tokenization
One of the cool features Algorand offers is the tokenization of assets using their Algorand Standard Assets (ASA) mechanism which allows any type of asset to be represented on the Algorand blockchain. This can include fungible, non-fungible and more assets.
Some of the possibilities they offer are the following:
- Real Estate
- In Game Items
- Stable Coins
- Supply Chain
- And more
Algorand boasts a thriving ecosystem of DeFi protocols and other sectors with a number of developers working on not only improving the network but also expanding the ecosystem.
Using DeFiLlama we can see that Algorand has a total value locked (TLV) of $190 million as of the time of writing this article. That is spread across 8 different protocols including DEX’s, Lending Protocols and liquid staking. Algorands 3 biggest protocols by TVL are, Algofi, Folks Finance and Tinyman.
Algorand also boasts some up and coming gamefi projects and a number of NFT protocols and marketplaces. You can view a full list of the Algorand ecosystem here.
What is Cardano?
Cardano is a layer 1 blockchain which is designed to be flexible and scalable for running smart contracts. Cardano is the 8th biggest crypto currency by market cap with a market cap of $15 billion. Cardano runs proof of stake allowing for it to be more scalable when developing dApps, tokens and more.
Cardano was founded in 2015 by Charles Hoskinson.
As of today Cardano is yet to roll out its smart contracts and has been having development issues trying to do so. Cardano has the goal to be the most scalable, flexible and energy efficient blockchain and intends to achieve that by using proof of stake rather than its energy heavy partner proof of work.
Much like Algorand having ALGO as its native token Cardano has a native token called ADA. ADA will be used for paying fees, staking and making transactions on the network.
This will most likely make a lot of Cardano maxis angry but to be honest I can not think of any genuine Cardano pros. To be blunt and honest the network does not work, it’s been in the works for years and yet can’t host a single protocol. While hundreds of efficient layer 1s have launched over the past few years, Cardano has only managed to launch one DEX on their network which failed.
The most clear negative that Cardano has is the fact that the network does not work. With smart contracts not being live and the developers having failed to launch them in the past this should make any investor question whether the network will ever come to fruition. With Cardano being founded in 2015 and launched in 2017 you would think they would have capable and working smart contracts live by now, especially with the funding that they have.
As we can see Algorand is far ahead of Cardano in all aspects apart from the market cap. While Algorand has a thriving ecosystem of DeFi, NFT projects and more, Cardano has nothing. It is hard to compare their performance in turns of transaction speed and fees as Cardano does not yet offer these capabilities, so I guess it is safe to say Algorand is ahead of Cardano here too.
Now in saying that Cardano does have potential and has positioned itself nicely in the top ranks of cryptocurrencies to one day be a powerhouse. The Cardano developers seem to be working and developing and if they can get the network up and running with successfully launched protocols then I think they could be away.
The only problem seems to be getting the network to work.
To wrap things up I would say the clear winner in the war of the layer 1s in this matchup is Algorand. With a working network and a thriving ecosystem it is hard for Cardano to compete.