Like most technologies, cryptocurrencies have improved over time, with new blockchains boasting technical advantages over their predecessors. The new generation platforms such as Cardano and Solana (here the quotations in real time) are part of this progression and could be excellent investments in the coming decades. Let's dig deeper.
Cardano is a network designed to host decentralized applications (dApps), which are programs that use self-executing smart contracts to offer services on the blockchain. Cardano already offers significant advantages over the current market leader, Ethereum. But its development roadmap could be a game-changer.
Capable of handling 250 transactions per second (TPS), Cardano is significantly faster than Ethereum, which has a TPS of 15. But Cardano's developers still have other tricks up their sleeves.
According to Input Output Hong Kong (IOHK), the team behind Cardano, the platform plans to implement an update called Hydra, which aims to increase Cardano's scalability by processing some transactions outside the blockchain. IOHK suggests these changes could send Cardano's transaction capacity up to one million per second. But that's an ambitious goal, and they plan to grow blockchain capacity based on demand.
Cardano's developers have a track record of success. In 2021, IOHK partnered with the Ethiopian government to implement a blockchain-based educational identification system to track grades and academic performance. Said to be the largest blockchain implementation in the world, this project is a huge vote of confidence in the capabilities of Cardano's developers.
Unlike many of its rivals, Solana doesn't have to wait for an update to boast lightning-fast speed and scalability. Able to handle 50.000 TPS, she leaves both Cardano and Ethereum in the dust. But her developers aren't resting on their laurels either. A shift to real-world fintech could help unlock the next phase of long-term growth.
While blockchain technology has come a long way since Bitcoin entered the scene in 2009, it is still a long way from widespread adoption in the real world. Solana is working to change this with a new fintech project called Solana Pay, which could help people use cryptocurrency for more day-to-day financial transactions.
Solana Pay is a protocol designed to allow developers to customize the cryptocurrency-based payment infrastructure that works with Solana's native token, SOL, and more other cryptocurrencies. Solana wouldn't be the first to synergize fintech with blockchain technology, but it has a huge advantage thanks to industry-leading speed and low fees (Solana has an average fee of $ 0,00025 per transaction compared to around $ 3,9 for Ethereum, according to YCharts data).
With blazing speed, low fees, and an active development team, Solana is an ideal cryptocurrency for investors looking to stay ahead of the increasingly fierce competition.