Cardano and Shiba Inu are two common names in the crypto industry. One is just an altcoin, and the other is a meme token.
They are therefore very different, even though both of them are quite popular. For example, Cardano is an independent network while Shiba Inu is a project that runs on the Ethereum blockchain.
If you are reading this guide, it is probably because you seek to know the differences between the two projects. You may also be wondering which of the two is most suitable for you, whether for investment or any other use.
In this guide, we will clearly differentiate the two cryptocurrencies and help you to decide on which one is best for you.
What Is Cardano?
Cardano is a top proof-of-work (PoS) network that is known for supporting decentralized applications. Developers use it to build dApps and deploy them using smart contracts. It is therefore a platform where all things web3 find expression.
The founder, Charles Hoskinson insists on a scientific approach to building the network. Based on this, every proposal for growing the network must be tested scientifically, even peer-reviewed to ensure that no loopholes are allowed.
Cardano uses a unique PoS consensus mechanism known as Ouroboros. This algorithm is responsible for the network’s uniqueness and strengths which make it distinct from any other network. Some of the strengths of Cardano are scalability, speed, and low transaction fees.
The native token for the network is ADA. This token is used first of all to settle transaction fees on the network, therefore anyone using Cardano must have some ADA. It is also the token used to secure the network through staking.
PoS networks generally depend on validators who stake their tokens to secure such networks, and ADA is the token used on Cardano, both for staking and for incentivizing validators. It is also the governance token for the network.
By holding ADA, you can have the right to vote on proposals for developing the Cardano network. The more ADA you hold, the more impactful your votes will be.
ADA has a circulating supply of 35 billion tokens and a maximum supply of up to 45 billion tokens. All the tokens are pre-mined, and are only released into circulation by the Cardano team.
What Is Shiba Inu (SHIB)?
Shiba Inu is the second largest meme cryptocurrency by market cap after Dogecoin. It was inspired by Shiba Inu, a popular dog breed which also inspired the creation of Dogecoin. Like Dogecoin, it was created as a fun cryptocurrency with no specific use case in mind.
Nevertheless, it has grown rapidly, making many investors rich in the process. The crypto project runs on Ethereum, which makes SHIB, the native token, an ERC-20 token. The team has been seeking to get some use cases for the project.
Currently, SHIB is used to pay for goods and services at thousands of online merchants. The team also launched Shibarium, a Layer 2 network for the token which makes it faster and cheaper to use for payments.
Shiba Inu is also considering support for non-fungible tokens (NFTs). The project recently announced its set of NFT collectibles to be released.
There are currently close to 600 trillion SHIB in circulation, which is the total supply of the token. The team also has a burn mechanism through which SHIB are burnt on a regular basis to keep the supply in check and ensure the value remains intact.
Which Is Better?
Cardano is a strong PoS network that competes with Ethereum upon which Shiba Inu is built. The native token, ADA, also has a much smaller supply than SHIB. This makes it both a good choice for decentralized applications and as an investment.
Shiba Inu on the other hand is a highly volatile ERC-20 token that is hardly predictable as an investment, especially because of its large supply.
