You cannot talk about the top ten cryptocurrencies without mentioning Cardano and XRP. XRP is the 7th largest cryptocurrency while Cardano is the 10th largest.
You may know about these two projects but do you know what makes each one different from the other? In this guide, we will explain the differences between the two, stressing their strengths and weaknesses.
If before now you were wondering which of the two to use for whatever you want to do, this guide is for you. By the time you’re done reading, you’ll be able to know exactly which of the two to use, so let’s dive into it.
What is Cardano (ADA)?
Cardano is a top proof-of-work (PoW) crypto network known for its scientific approach to the development of its network. The founder Charles Hoskinson is known for his belief in thorough scientific research including peer review of all proposed changes to Cardano.
Like any other PoS network, it supports smart contracts and building of decentralized applications (dApps), making it a proper web3 network. It also supports non-fungible tokens and many other features.
Cardano is also a fast network for funds transfer across borders. You can use it as a low-cost, fast, and scalable network for all forms of transactions including those within the web3 ecosystem.
The network’s native token, ADA is used primarily to pay for transaction costs on the network. This includes the cost of funds transfer, buying or mining NFTs etc. The token also serves as the governance token for the network, allowing holders to vote before any change is implemented.
As a PoS network, Cardano depends on validators who operate nodes and stake to secure the network. This staking is done using ADA, and the same token is used to reward the stakers as an incentive for them to keep securing the network.
ADA has a total supply of 37 billion tokens and the current circulating supply is roughly 36 billion tokens. Although pre-mined, the maximum supply can be as high as 45 billion tokens. Apart from being a utility token, ADA is also an investment asset and many who bought it early have profited.
What Is Ripple (XRP)?
XRP, also known as Ripple, is a cryptocurrency issued by Ripple, a blockchain based payment network. The network facilitates funds transfer across borders at the lowest possible cost, making it a major competition to the legacy payment corporations.
XRP serves as a bridge currency that provides liquidity for instant transfers. These transfers cost much less than what legacy companies charge for such transactions. XRP Ledger (XRPL) is the blockchain network used for such transfers.
The company works mainly with companies rather than individuals, and has hundreds of clients all over the world. Unlike Cardano, the XRP network does not use a PoS consensus mechanism. Instead, it uses its own customized mechanism known as the Ripple Protocol Consensus Algorithm (RPCA).
This algorithm accounts for the network’s speed compared to many other crypto networks. There are 55 billion XRP tokens in circulation. However, it has a total supply of 100 billion pre-mined tokens.
XRP remains a popular cryptocurrency for investment among crypto investors because of its potential in the payment industry which is expected to keep growing in the future. Infact, XRP supporters believe the token can increase in value to reach $589 in the near future, hence their resolve to keep investing in it.
XRP also has a burn mechanism that burns a certain number of XRP every day. This is a strategy to reduce the circulating supply and boost its value.
Which Is Better?
Both Cardano and XRP are fast networks for funds transfer at low costs. However, Cardano is a versatile platform that supports many things including smart contracts, decentralized applications and others.
If you’re looking for a project to invest in, ADA may be a great choice since it has many use cases at once, unlike XRP which is only used for payments.
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