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If you think that Bitcoin is the only trendsetter in the cryptocurrency ecosystem, wait till you learn about ADA, Binance, Ethereum, and Solana. These cryptocurrencies are ushering in full swing in the sphere of the decentralized peer-to-peer network.

Cryptocurrencies, as you know, are in the form of a digital token and are stored in a decentralized and distributed ledger known as the blockchain. The realm of cryptocurrency has expanded exponentially ever since Bitcoin got launched. Indeed, Bitcoin still rules the world of cryptocurrencies; many other virtual currencies are also becoming popular.

Even though we will be talking about cryptocurrencies in this post, we want to shift our focus to other rising stars: ADA vs Binance vs Ethereum vs Solana. Let us tell you what they are to pick the correct virtual currency.

Solana

Solana is currently touted as the next big thing in cryptocurrencies. It was launched in 2017. Compared to multiple significant cryptocurrencies, Solana has done well in recent days. It’s a blockchain network, and its token is SOL. So far, it has more than 400 projects, and the number is increasing. Among the many projects, some of them are- unique wallet solutions, staking platforms, lending protocols, decentralized exchanges, digital games, metaverse platforms, storage solutions, and more.

Solana’s growth is growing every day as more and more projects have entered this ecosystem. The Geneva-based Solona Foundation maintains it, and its biggest rival is Ethereum. The reason why SOL is in demand is because of NFT. FTX Exchange has developed an NFT marketplace, the cross-chain trading between Ethereum and Solana, which has enhanced Solana’s growth.

Solana provides its customer with a minimal minting fee, which is another reason it attracts more customers. Solana is a tough competitor of Ethereum, considering Ethereum is here in the industry for a long time. Moreover, Solana is capable of doing 50,000 transactions per second. It can achieve tremendous speed because it combines two consensus algorithms- Proof of History and Proof of Stake.

So far, there are more than 350 projects built on Solana. Some popular projects are Web3 applications, DeFi, games, NFTs, and more. Solana is known for enabling faster transaction speed and low gas cost.

Ethereum

Ethereum is one of the pioneers in blockchain technology. It is an open-source and decentralized blockchain that provides smart contract functionality. It is second to Bitcoin and popular in the cryptocurrency realm. It was founded in 2013 and allows users to deploy immutable and permanent decentralized applications on the platform. Although it was founded in 2013, it was announced in January 2014 during Miami’s North American Bitcoin Conference.

Unlike Solana, the number of transactions Ethereum can do is less. It can handle only 30 transactions per second. However, one of the founders of Ethereum, Vitalik Buterin, has said that the next version, Ethereum 2.0, will handle 100,000 transactions per second. The consensus algorithm Ethereum uses is Proof of Work, PoW. The confirmation and verification of transactions require a lot of electricity, so the number of transactions it can do is limited and more minor. However, Ethereum 2.0 is built on the proof-of-stake model, which requires significantly less electricity and can take care of many transactions.

When it comes to the projects currently running on the Ethereum blockchain, there are more than 3000 decentralized apps, which are also called dapps. Most of the projects of Ethereum are focused on DeFi, otherwise known as decentralized finance. Examples of projects running on Ethereum are- MakerDao, Uniswap, Chainlink, Axie Infinity, Aave, and more.

Cardano (ADA)

ADA is a Dapp development platform and a third-generation public blockchain. It is the first blockchain that added something unique to its core principles, a peer-reviewed research strategy. ADA is different from the rest of cryptocurrencies. ADA or Cardano now becomes a smart contract blockchain. It was launched in September 2017, and it earned quick recognition because of its progression in VM and language. However, it was founded in 2015. 

When it was launched, it separated itself from every competitor because it started working with the academic sector, particularly educators of colleges located in different parts of the globe. But now, Cardano is working intensively with the agriculture, finance, and healthcare sector. Since it follows a peer-review process, the developments are often steady and slow. 

Cardano is an excellent option to invest in terms of environmental factors. It consumes less energy, much lesser than Ethereum. Moreover, the transaction fee of Cardano is cheaper than Ethereum, too; however, more than Solana. Cardano has more than 100 projects in its ecosystem, such as Ergodex, Occamfi, Cardstarter, Singularitynet, Sundaeswap, and much more. Cardano’s community includes developers, enterprises, innovators, regulatory, government, institutions, stake pool operators, and a few more. 

It can handle 250 transactions per second when it comes to transaction speed. The Cardano platform aims to do up to one million transactions per second soon. It uses proof of stake consensus. 

Binance

Binance was launched in 2017 in China by Yo He and Changpeng Zhao. The token of Binance is called Binance Coin, BNB. Their features are educational resources, institutional services, payment services, peer-to-peer crypto transactions, etc. Unlike the other cryptocurrencies, which are better for crypto traders, Binance becomes beneficial for non-crypto traders, who are just getting started and need account features, order types, and trading tools. It offers more than hundreds of cryptocurrencies to traders.

After one year of its launch, it became a leading cryptocurrency. It is working on a host of projects, such as AutoShark Finance, PancakeSwap, Coinswap.space, dForce, Pancake Bunny, Alpaca Finance, TreeDfi, CREAM, and much more. Binance Coin, BNB launched another cryptocurrency in September 2020, Binance Smart Chain. The community of Binance of massive. It includes cryptocurrency traders, developers, innovators, and more.

However, those living in the USA will not use Binance because it was banned in the USA in 2019. Other than this, even in the United Kingdom, the UK’s Financial Conduct Authority ordered Binance to stop their regulated activity immediately. Binance has received multiple regulatory warnings for tax evasion and money laundering.

In terms of the transaction speed, Binance can handle roughly around 100 transactions per second. And just like many other cryptocurrencies, the consensus it uses is proof of stake.

All the cryptocurrencies that we have listed here are derived and inspired by Bitcoin in some way or the other. Some use censorship-resistant architecture, while others use open-source code. Therefore, it is advisable to visit each cryptocurrency’s website to learn more information before using and investing in them.

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