Cardano (ADA) vs Litecoin (LTC): What Is the Difference?
If you have been in the crypto space for a while, you must have heard of Cardano and Litecoin. The two are among the most popular cryptocurrencies.
They are however very different from each other in many ways. Although they are both altcoins, Cardano is a proof-of-stake (PoS) crypto network while Litecoin is a proof-of-work (PoW) network. This is a very big difference between any two crypto projects.
In this guide, we will explore more differences between the two cryptocurrencies and help you to see more clearly how they differ, even if you knew them before now. This guide will also help you to decide which one is a better investment.
What Is Cardano (ADA)?
Cardano is a top PoS network for smart contracts and decentralized applications. The network has a reputation as a scientific network, allowing nothing to be implemented unless scientifically proven.
Every proposed upgrade on Cardano must be thoroughly scrutinized and peer-reviewed. According to the founder Charles Hoskinson, this ensures that the network endures and ends up becoming the top crypto network.
The network has a native utility token known as ADA. With ADA, network users can pay for transaction fees, whether they are simply sending funds or using the network for developing decentralized applications.
The token also serves as a means of securing the network through staking. As a PoS network, Cardano relies on validators who stake their ADA to keep the network secure. They are then rewarded with more ADA for securing the network and helping to verify transactions.
ADA is also a governance token for Cardano. Those who hold the token are given the right to vote on proposals for improving the network.
There are over 35 billion ADA in circulation currently, but it has a total supply of 37 billion. There is also a maximum supply of 45 billion tokens. Apart from its use on Cardano, ADA has also been an investment asset for many crypto investors.
What Is Litecoin (LTC)?
Litecoin is a PoW cryptocurrency popularly referred to as the silver to Bitcoin. This is derived from the fact that Bitcoin is said to be digital gold. The cryptocurrency was created with improvements to serve the initial purpose of Bitcoin.
Bitcoin was initially created as peer-to-peer electronic cash. However, the network became too slow and expensive to serve that purpose. Therefore Litecoin was created to be faster and cheaper to use, making it a true electronic cash network.
The network has a block time of 2.5 minutes, which is just a quarter of Bitcoin’s 10 minute block time. This makes it four times faster than Bitcoin and also much cheaper to use in terms of transaction fees.
As a PoW network, Litecoin relies on miners to verify transactions and bring new LTC into circulation through the reward system. Litecoin has a maximum supply of 84 million coins, but it only has 74 million coins in circulation currently.
That leaves 10 million more coins to be mined. This makes it exactly four times the supply of Bitcoin. However because of the speed of transactions and lower transaction fees, Litecoin is used regularly for payments in many online stores worldwide.
In fact, Litecoin’s speed competes with PoS networks such as Cardano, which are generally faster but arguably less secure because they are quite centralized. Litecoin is also working on collaborations involving non-fungible tokens.
What Is the Difference?
Cardano is a top PoS network while Litecoin is a top PoW network. They both function differently, but have a few things in common such as speed of transactions and low transaction fees.
However if you’re considering an asset for long-term investment, Litecoin is a better choice. It has a much smaller supply, which intrinsically makes each coin more valuable compared to Cardano’s up to 45 billion tokens. Litecoin will likely become even more valuable as it adds other features such as NFTs which Cardano already supports.
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