Cryptocurrency

Cardano vs Polkadot: Detailed Comparative Analysis of ADA vs DOT

Cardano (ADA) vs Polkadot (DOT): Detailed Comparative Analysis

What is Cardano?

A third-generation blockchain after Bitcoin & Ethereum that focuses on scalability, interoperability & sustainability. Cardano also focuses on swelling costs, usage of energy, and transaction time. Founded by the co-founder of Ethereum, Cardano is a multi-layer blockchain operating on the Proof-of-Stake to validate transactions. The core of the Cardano consensus is the Ouroboros algorithm that aims for a high level of security with efficiency. 

To explain it further, Cardano is a decentralized proof-of-stake (PoS) blockchain platform and has the token – ADA as its crypto token. It is based on scientific philosophy and a research-first driven approach. In PoS, the blocks are verified by the machines of coin owners where the owners keep their coins as collateral to validate blocks.

Deep Dive into How Cardano works?

Cardano Vasil Hard Fork

Firstly, in short, Cardano’s smart contract capabilities launch saw intense traffic coming on the chain with a huge number of developers wanting to build DeFi protocols on the chain. More traffic in a platform means the network is likely to get slow on its speed. Thus the Vasil Hard fork was the sorted solution.

Cardano Vasil Hard Fork is the next step in its plan to improve on the speed and scalability of the ADA network. This huge step essentially brings the project one more step closer to dethroning the largest smart contract and DeFi platform out there – Ethereum. With this latest upgrade, Cardano’s developers hope to improve the efficiency of smart contracts to make Cardano cheaper and faster to use.

What is Polkadot?

One of the most prominent layer 2 Ethereum blockchain tokens; Polkadot; is a shrading multichain protocol connecting and securing blockchain networks along with facilitating the transfer of data, and other assets across chains. This helps the data to become interoperable. The foundation for decentralized internet for blockchains which we also call the Web3 was laid out by Polkadot. 

Polkadot also provides connectivity between blockchains without any third party and allows the transfer of information in a very secure manner. Users can create parallel chains called “parachains”, which allow for efficient management of the blockchain network. This design decision by the developers of Polkadot, combined with its consensus mechanisms makes it extremely energy efficient.

Recent news and developments around Polkadot ecosystem

  • The developers of the Polkadot blockchain have released a new roadmap which paves the way for a number of major changes to its operations in the coming months.

  • Polkadot is expected to be pretty busy blockchain ahead as nearly 415 project grants have been passed by the Web3 Foundation out of 1054 applications. On the other hand, staking DOT becomes much easier with the launch of the new staking and nominating dashboard.

Top Polkadot Ecosystem Tokens by Market Cap

An interesting fact often noticed by crypto enthusiasts is that both DOT & ETH have the same ambitions to establish themselves as the leader of the Smart contract platform. Being built on the PoS consensus since inception, Polkadot has many elements which are designed to overcome the weakness persisting in the Ethereum protocol. However, as DOT still appears to be immature compared to ETH which is well-established, Ethereum continues to be the leader in the DeFi space. Even more so, with the successful Merge now on the cards for Ethereum as well.

Some of the top DOT ecosystem tokens are; Kusama, Ocean Protocol, Polkastarter, and Moonriver.

Read more on Top Polkadot Ecosystem Tokens

Cardano vs Polkadot: Comparative Analysis

Coin Name Cardano Polkadot
Launch Date 2017 2017
Founder Charles Hokinson Dr. Gavin Wood, Robert Habermeier, and Peter Czaban.
Blockchain Protocol Ouroboros Protocol  Polkadot Blockchain
Native Token   ADA DOT
Market Cap $14,930,086,894 $7,231,689,274
Token Type Native Native
Circulating Supply 34.24B ADA 1.12B DOT
Max Supply 45,000,000,000 NA
Consensus Method Proof-of-Stake(PoS) Proof-of-Stake(PoS)

ADA vs DOT: Technical Analysis

Cardano Technical Analysis

The ADA price has been trading along the crucial lower support since the beginning of 2022, even more so after the market crash in May. The recent rebound was also a result of a flip from these levels, which could lead the price towards a minor bull rally. At the time of writing, Cardano’s price was trading above $0.4. The change in price was seen few days after receiving an interim push as the most-awaited Vasil Hard Fork went live earlier during the week. While it is quite evident the price failed to attract the bulls as the crypto stood rejected at the pivotal resistance at $0.48. However, the rejection appears to be a short-lived action, which may very well be overturned soon. 

Source: TradingView

Polkadot Technical Analysis

DOT price remained heavily consolidated in the last seven days and closed the weekly trade on a bearish note. However, even if the DOT price has managed to break above the parallel consolidation it is also facing bearish interference at the moment. Following the new roadmap release, the buying pressure has accumulated well, and hence a notable upswing may make its way out very soon. 

Source: TradingView

ADA vs DOT: Price Prediction 2022

How high will ADA price go by the end of 2022

Cardano price has been on the surveillance for the past couple of weeks as the most-anticipated Vasil Hard Fork has been on the verge to go live. It was expected that the upgrade could intensify the rally which may soar high enough for the asset to hit $0.5. However, the upgrade also resulted in ‘Sell the news’ mirroring the impact, post the Ethereum Merge. While the scope of an upswing still remains pretty high as the token maintains its strength.

Additional Read: Cardano Price Prediction

How high will Polkadot price go by the end of 2022

The Polkadot ecosystem is working to empower the DeFi ecosystem and the smart contract phase by strengthening their parachains. It has also recently published a blog about the new roadmap the DOt developers have established. Therefore, regardless of the market conditions, the platform may be the leader in the decentralized space very soon. However, the 2022 close may not be pretty bullish, as the crypto analysts have been guessing a $15 mark for DOT. However, in the upcoming years, the price is expected to regain the lost levels and may also thrive to test the ATH soon.

Additional Read: Polkadot Price Prediction

Pros and Cons of Cardano vs Polkadot

Pros

Cardano Pros Polkadot Pros
Cardano has a great development team with a pre-reviewed platform to ensure the stability  Each chain built within Polkadot uses Parity Technologies Substrate modular framework that allows developers to choose from components that suit their application-specific chain best.
Cardano is open-sourced platform with code written in Haskell programming language The modular framework of Relay Chain offers developers the flexibility to select specific components that best suits the application-specific chain.
The chain is secure and provides digital identity to unbanked citizens across the globe.
It is a multichain layer that uses settlement layer & computational layer to ensure unlimited scalability & quick transactions 

Cons

Cardano Cons Polkadot Cons
Cardano has not accomplished with development phase with a lowered pace  The DOT ecosystem has been hacked and drained of a lot of funds before being stopped
The platform is more prone to 51% attack as the algorithm that claims to sync the ledgers appear to be unrealistic
Limited transactions can be processed within a second 
75% of ADA is not in circulation but staked

Should you buy Cardano or Polkadot?

The functionality of any crypto assets is solely based on what requirements the asset is fully compliant with, as per the investor. For this, it is imperative that you conduct thorough research of all the tokens of interest before deriving at a conclusion. However, while we are talking about Cardano and Polkadot, here are some significant differences that separate the two blockchains; 

Infrastructure

On one hand, Cardano has a double-layer infrastructure, while on the other, Polkadot enables multiple blockchains connected to a single mainnet.

Strengths

Polkadot’s strengths are endless scalability and sustainability with more efforts coming to fruition very soon, while the ADA network provides high transaction speed with low (or zero) transaction fees. 

Mission

Cardano seeks to build an upgraded network essential for the development of dApps, while Polkadot strives for better functionality and interoperability between various blockchains. 

Tokenomics

The supply of Cardano’s native token, ADA, is capped at approximately 45 billion, while Polkadot’s DOT token has an unlimited supply. 

How to invest in Cardano or Polkadot?

Investing in crypto is super simple, safe, and secure with the CoinDCX app. It doesn’t matter whether you want to invest in Cardano or Polkadot token, we have got you covered. CoinDCX is India’s safest and simplest crypto investment app for your one-stop purchase of any crypto asset. 

Here are the 3 simple steps to buy your first token with CoinDCX. 

  1. Sign up on CoinDCX 
  2. Link your bank details
  3. Buy Cardano (ADA) or Polkadot (DOT)
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