The key difference between Bitcoin and Cardano is that Cardano is a proof-of-stake blockchain, whereas Bitcoin is a proof-of-work blockchain.
Bitcoin and Cardano are two of the most prominent blockchain platforms in the current market. Of the two, Cardano is the most recent project, being released in 2017, whereas Bitcoin was founded in 2009.
CONTENTS
1. Overview and Key Difference
2. What is Bitcoin
3. What is Cardano
4. Bitcoin vs Cardano in Tabular Form
5. Summary – Bitcoin vs Cardano
What is Bitcoin?
Bitcoin is a decentralised digital currency that was first released in 2009. It is a digital currency based on blockchain technology that can be used to purchase goods and services in the same way that the US Dollar can. Unlike other government-issued fiat currencies, Bitcoin is decentralised, meaning transactions are validated by several computers rather than a single authoritative body. Bitcoin has a reduced transaction charge when compared to other common online payment methods.
Mining is a method by which many nodes on the blockchain network confirm bitcoin transactions. However, Bitcoin is not regarded as a legal tender in most parts of the world, which means it cannot be used as a medium of exchange. Despite this fact, the demand for Bitcoin is continuously expanding around the world.
What is Cardano?
Cardano is a decentralised proof-of-stake (PoS) blockchain platform that aims to outperform proof-of-work (PoW) networks. Networks such as Ethereum and Bitcoin have several scalabilities, sustainability, and interoperability issues, all of which Cardano is designed to tackle and provide solutions to. The founder of Cardano is Charles Hoskinson, who was also a co-founder of Ethereum. While working at Ethereum, Hoskinson noted all the problems of Ethereum and Proof-of-work networks and developed Cardano to solve these issues.
Cardano has several use cases and applications and even allows developers to build their own projects on the network. One of Cardano’s main goals is to provide a banking system for countries that don’t already have an effective government-issued system. Considering Cardano is a proof-of-stake blockchain network, monetary transactions on the network are faster, cheaper, and more energy-efficient, making it the perfect solution to combat the lack of banking systems in certain countries.
What is the Difference Between Bitcoin and Cardano?
Although both Bitcoin and Cardano are blockchain networks, some of the technology behind them is vastly different. Cardano, a proof-of-stake blockchain, is very advanced and tackles the several problems that Bitcoin, a proof-of-work Blockchain, has. Cardano is faster, more energy-efficient, and cheaper when compared to Bitcoin. Thus, this is the difference between Bitcoin and Cardano. Moreover, Cardano was created to solve real-world issues such as the lack of banking networks in developing countries, whereas Bitcoin was created for the sole purpose of acting as a digital medium of exchange to purchase goods and services.
Below is a summary of the difference between Bitcoin and Cardano in tabular form for side by side comparison.
Summary – Bitcoin vs Cardano
Although Bitcoin and Cardano are fundamentally similar, they have a few differences. Cardano is simply more powerful and helpful in every sense, and it outperforms Bitcoin in terms of technology. Cardano, being a proof-of-stake network, ensures that transactions are faster, cheaper, and more energy-efficient when compared to the proof-of-work-based Bitcoin. The only area where Bitcoin has an advantage over Cardano is in terms of global attention and awareness. Overall, both suit their intended use perfectly. Cardano was intended to solve real-world issues, whereas Bitcoin’s sole purpose is to be used as a digital medium of exchange to purchase goods and services. So, this is the summary of the difference between Bitcoin and Cardano.
Image Courtesy:
1. “Blockchain, bitcoin ,bank , business , cash, coin ,commerce , trade, concept ,credit, cryptocurrency, currency, digital ,dollar ,e commerce ,electronic ,exchange, finance ,flat ,hand, international , investment, market, money, online ,paying ,payment ,savings , symbol , wallet,” (CC0) via Pxhere
2. “Cardano-cardano-logo-cardano-crypto” (CC0) via Pixabay