Tron and Cardano are two of the major proof-of-stake (PoS) blockchain networks in the crypto industry. As PoS networks, they share a lot in common.
They are both used to build smart contracts and decentralized applications. They also both support non-fungible tokens (NFTs) and many other things they have in common. However, they are also quite different from each other.
In this guide, we explore the major differences between these two networks to help you appreciate their uniqueness more. This will also help to guide you in deciding which of them to use for your investment or building applications.
What is Tron?
Tron is a PoS network that was first created on the Ethereum network. It became an independent network in 2018 and has since become a platform for smart contracts and building of decentralized applications.
The network currently has millions of users who use it to do fund transfers, and build applications. One notable thing about Tron is that it is a fast network, which explains why many people prefer to use it over Ethereum for funds transfers.
The main aim of the Tron network is to decentralize the internet, hence its critical role in building the web3 ecosystem. It is currently the twelfth largest network by market capitalization. Its native token, TRX, is what is used to power the network.
The token is used to pay for transactions. Because Tron is quite fast and scalable, transaction fees are generally very low, usually costing just a fraction of a cent even for large funds transfers.
The token is also used for staking to secure the network, and also as a governance token that allows holders to vote on future developments of the network. TRX has a capped supply of over 100 billion tokens, which is the maximum number of tokens for the network.
The tokens are pre-mined, so there’s no need to mine on the network. Instead, validators stake their TRX and get rewarded with more TRX for helping to validate transactions.
What is Cardano (ADA)?
Cardano is another PoS network that has become quite popular recently. It supports smart contracts and decentralized applications, just like Tron. what makes Cardano unique however, is its academic approach to the network’s development.
The founder of the network, Charles Hoskinson ensures that any upgrade to be implemented on the network goes through a rigorous screening process including peer review before it is implemented.
This is to ensure that a high standard is maintained when it comes to the growth of the network, and that only the best ideas get implemented. This is in line with Hoskinson’s vision of making Cardano the largest crypto network in the near future.
As a PoS network, Cardano supports staking, which is a way to help secure the network. The network’s native token, ADA, is what is used for staking, and also for paying transaction fees for all kinds of transactions.
Holders of the token also have a stake, and so can vote on new developments to be implemented on the network. This is a fast and scalable network, so the fees are also low just like on Tron.
ADA is currently the tenth largest cryptocurrency by market cap, and analysts believe it has a bright future though not many can see it now.
Which Is Better?
Both Tron and Cardano are reliable PoS networks with high scalability and low transaction fees. However if you wish to decide on which network to use for building or as an investment, you’ll need to consider some major factors.
The market capitalization is an important factor to consider. The lower the market cap, the better. However, something even more important is the maximum supply of the token.
The asset with the lower maximum supply is usually a better option because the tokens are more scarce, and so the value is more likely to increase with time. This makes ADA the better choice.
