In this post we will compare Bitcoin and Cardano.
Similarities Between Bitcoin and Cardano
Both Bitcoin and Cardano are among the top cryptocurrencies – BTC is the number one coin, while ADA stands at the 12th place (by market capitalization). To be absolutely honest, we can’t say that the two coins are very similar, but the opposite.
Both bitcoin and Cardano achieve decentralization, but in very different ways. A key feature of decentralization are the number of people who keep the blockchain maintained and updated. As we have seen, the bitcoin blockchain is maintained by a very small number of parties, while the Cardano blockchain aims to be maintained by magnitudes more.
Differences Between Bitcoin and Cardano
|Founded||Bitcoin is a digital currency that was created in January 2009. It follows the ideas set out in a whitepaper by the mysterious and pseudonymous Satoshi Nakamoto. The identity of the person or persons who created the technology is still a mystery.||Cardano, founded in September 2017 by Ethereum co-founder Charles Hoskinson, is an open-source, decentralized blockchain network and smart contract platform. Ada (ADA) is its native cryptocurrency.|
|Network||The bitcoin network is a peer-to-peer payment network that operates on a cryptographic protocol. Users send and receive bitcoins, the units of currency, by broadcasting digitally signed messages to the network using bitcoin cryptocurrency wallet software. Transactions are recorded into a distributed, replicated public database known as the blockchain, with consensus achieved by a proof-of-work system called mining. Satoshi Nakamoto, the designer of bitcoin, claimed that design and coding of bitcoin began in 2007. The project was released in 2009 as open source software.
The network requires minimal structure to share transactions. An ad hoc decentralized network of volunteers is sufficient. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will. Upon reconnection, a node downloads and verifies new blocks from other nodes to complete its local copy of the blockchain.
|The Cardano network is a technical infrastructure combining Cardano nodes and their relative interactions in one unified system. It consists of a collection of nodes that communicate with each other to maintain the distributed ledger. These nodes are the actors on Cardano that validate blocks, add blocks to the chain, and distribute transactions.
The networking layer is the driving force for delivering information exchange requirements, which includes new blocks diffusion and transaction information for establishing a better data flow. Cardano nodes maintain connections with peers that have been chosen via a custom peer selection process.
|Purpose||The purpose of Bitcoin is to remove the need for a single company (banks, PayPal, etc.) having control over your money. Instead, with Bitcoin, you have full control. All Bitcoin transactions are confirmed on a trustless shared network that isn’t owned by anyone.||Cardano’s purpose is to become to the Cryptoverse what TCP/IP is to The Internet.
This has been mentioned by Prof. Hoskinson and others. We don’t want to save the world (at first), we don’t want to beat the other coins, and we’re not trying to make a killing (though we wouldn’t mind if we did).