Understanding what makes Hedera (HBAR) different from Cardano (ADA) is a great way to broaden your overall understanding of the digital asset sector. These networks were created at a time when the market was eager for blockchains with more functionality and lower fees compared to Ethereum. Interestingly, both of these networks accomplished their task to improve efficiency, albeit in different ways. Here’s everything you need to know about Hedera (HBAR) vs. Cardano (ADA)
What is Hedera?
Hedera is a graph network that is technically different than a blockchain in some ways. It does leverage a decentralized ledger. However, it uses a different data structure for putting transactions together. Unlike blocks used in a blockchain, Hedera uses a system called hashgraph that uses hashes of transactions.
The network still functions as a layer 1 decentralized system that is geared towards enterprise clientele. This popular option provides businesses with low latency and a secure ecosystem to run decentralized applications. Currently, Hedera is one of the most used enterprise-level decentralized networks in the market.
What is Cardano?
Cardano (ADA) is programable layer-1 protocol. Developers can launch Dapps and other networks using the system’s efficient and secure options. This third-gen blockchain entered service in 2017 and is the brainchild of former Ethereum developers, Jeremy Wood and Charles Hoskinson.
The two used their experience working at Ethereum to ensure Cardano could handle advanced Dapps and smart contract programmability. The project raised eyebrows due to its academic ties as well. It was the first blockchain to use the scientific method during development. This usage led developers to label the project the “smart blockchain.”
What Problems was Hedera Built to Alleviate?
Hedera was built to reduce some of the main issues on blockchain networks. The use of a hashgraph network improves many features compared to blockchains, including sustainability. Hedera uses much less energy than Cardano and other blockchains to remain valid. Notably, the developers wanted to make the project carbon-negative.
Hashgraph networks are more scalable because of how they break up congestion and data. Unlike blockchains, they can scale vertically. Consequently, Hedera is capable of around 10,000 transactions per second (tps). This tps rate makes it faster than most competitors.
Another major concern for Hedera’s development was the high gas fees found on many blockchains. It costs less to complete transactions and execute smart contracts on the hashgraph system. The Hedera network provides a flat rate of $0.001 per transaction.
What Problems was Cardano Built to Alleviate?
Cardano was designed from the ground up to eliminate the guesswork found in earlier networks. The system was built to leverage all the available and measurable scientific evidence to create a highly secure and advanced network. The system introduces a host of features to make it ideal for users of all levels.
Lack of Security
Another major issue that Cardano tackles is the lack of secure networks. There are a lot of blockchains that lacked transparency and eventually collapsed. These networks failed due to programming errors or faulty security. Cardano integrates enterprise-grade security measures. Additionally, its open-source code has been vetted by multiple auditing firms.
Passive income is a great way to build wealth over time. Early blockchains like Bitcoin only offered proof-of-work mining options to secure returns. To mine these networks you needed an expensive mining rig and a lot of technical understanding, resulting in many believing that staking is a better option.
Cardano enables users to stake ADA tokens to secure low-risk returns. Staking is more democratic because it eliminates both technical and financial barriers. As such, staking is a popular option for DeFi networks nowadays. However, when Cardano entered the market, it was a significant change.
How Does Hedera Work?
Hedera was created to support the developer community. The project is open source and supports smart contracts and the creation of digital assets. Developers can create secure assets including cryptos, Dapps, NFTs, and much more.
Notably, Hedera integrates Directed Acyclic Graphs (DAGs) as a more efficient way to structure data. The combination of hashgraph efficiency and this technology gives the network low latency transactions and 1-second finality. Hedera is 10x faster than the average blockchain and is much faster than Cardano.
HBAR is the main utility token for the Hedera network. There are 50 billion HBAR slated for release over the entire life of the program. Notably, HBAR is one of the few utility tokens that have no staking minimum making it ideal for new users seeking passive income.
How Does Cardano Work?
Cardano answers the question, what would an academic blockchain look like? The platform introduces a PoS alternative called Ouroboros to the equation. This consensus mechanism creates a more level playing field by creating randomly chosen leaders for each epoch.
Notably, in Cardano, an epoch is a period. Epochs improve Cardano’s scalability because they enable the network to approve the state of the blockchain without having to review the entire network’s transactions. They also reduce the amount of energy needed to validate the network.
ADA is the main utility token for the Cardano network. Interestingly, it’s named after the 19th-century mathematician, Ada Lovelace. She is credited as being the world’s first computer programmer. As such, it’s fitting to have a digital currency named after her to honor her world-changing developments.
How to Buy Hedera (HBAR) and Cardano (ADA)
Currently, Hedera (HBAR) and Cardano (ADA) are each available for purchase on the following exchanges.
Bitstamp – Founded in 2011, Bitstamp is one of the oldest & most trusted exchanges in the world. This exchange currently accepts Canada, UK & USA residents excluding the states of Alabama, Hawaii, Idaho, Louisiana, Nevada, & New Jersey.
Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.
Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.
Binance – Best for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying Hedera (HBAR) and Cardano (ADA). Use Discount Code: EE59L0QP for 10% cashback off all trading fees.
Hedera Vs. Cardano – The Battle Continues
When you delve deeper into the discussion of Hedera (HBAR) vs Cardano (ADA) it’s easy to see both of these networks have unique characteristics that make them special. Hedera has top-notch performance and uses new tech to stay ahead of the curve. Cardano is backed by a massive team of academics and scientists that have spent thousands of hours ensuring its capabilities and security. As such, both projects have a lot of potential moving forward
To learn more, make sure to visit our Investing in Hedera and Investing in Cardano guides.