There are different types of altcoins. Cardano and Monero are among the top altcoins, but they are also different in their own rights.
Cardano is a project that supports smart contracts and decentralized applications, while Monero belongs to a special class of cryptocurrencies known as privacy coins. Though all cryptocurrencies don’t reveal the identity of the person using them, privacy coins go further.
If you have been wondering what the difference is between these two cryptocurrencies, this guide is for you. We will distinguish between the two projects and help you to decide which one to use for your particular need.
What Is Cardano (ADA)?
Cardano is a fast and scalable proof-of-stake (PoS) crypto network that is used to build decentralized applications using smart contracts. The network’s scalability is the reason it has grown very popular among developers over the years.
You can use it for all kinds of web3 activities, including non-fungible tokens, gaming, and all others. The network is known for its strict adherence to academic standards which demand that all proposed upgrades to it be tested scientifically and even peer-reviewed.
Because of the scalability, the Cardano network is very fast, and processes more transactions than proof-of-work (PoW) networks or slow PoS networks like Ethereum. This also ensures that fees on the network are kept low.
The native token for Cardano is ADA. This token is used to pay for transaction fees and ensure that the network is secured through staking. Validators stake their ADA and are in return rewarded with more ADA to play this role.
The token is also the governance token for the network. Anyone who holds ADA has a right to vote on changes and upgrades proposed for Cardano. This is another perk for holding ADA, as it gives users a right to participate in the governance of the network.
There are currently 35 billion ADA in circulation. However, the token has a total supply of 37 billion, and a maximum supply of 45 billion tokens. All ADA tokens are pre-mined, which means they don’t need to be mined like Bitcoin. Instead, they are simply released into circulation by the team.
What Is Monero (XMR)?
Monero (XMR) is an altcoin belonging to the class of privacy coins. These are coins that give users an extra layer of privacy, making it impossible to trace transactions that are otherwise fully transparent.
The goal of the project is to make crypto transactions more private and anonymous. By using advanced cryptography, Monero obscures both the sender and the receiver, making it impossible to trace the transaction to its source or destination.
Apart from making transactions more private, Monero is also meant to make crypto transactions faster and less expensive. To achieve this and ensure the highest level of security at the same time, Monero uses an energy-efficient PoW consensus mechanism known as CryptoNight.
The consensus mechanism ensures that there is high securing by ensuring maximum decentralization but is also scalable, making it possible for fees to be low and for speed to be higher than conventional PoW networks like Bitcoin.
XMR is the token used for payments on the Monero network. Its primary use is for facilitating private and anonymous transactions both locally and internationally. There are 18 million XMR in circulation, but the maximum supply is infinite.
This means more XMR will continue to be mined, making it an inflationary asset. However for some reason, the asset has managed to grow significantly in value since its launch.
What Is the Difference?
Cardano is the network for smart contracts, decentralized applications, and the entire web3 ecosystem. This makes it the place for developers looking to develop one thing or the other.
Monero on the other hand is for those looking to carry out private and anonymous transactions. If this is your goal. Monero is the perfect choice as it is capable to ensuring that your transactions remain anonymous.
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