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HBar vs ADA What Are The Pros And Cons?

The cryptocurrency industry is constantly evolving. Crypto traders and experts see how new projects that change the “rules of the game” regularly appear on the market. In this article, we will review projects such as Hedera Hashgraph and Cardano. Let’s talk about their strengths and weaknesses, as well as possible prospects.

What is Cardano?

The Cardano project is developed by Input-Output Hong Kong (IOHK). Developers consider Cardano a third-generation blockchain. According to the leading developer Charles Hoskinson, Bitcoin is the first generation, Ethereum is the second.

The Cardano blockchain can create smart contracts. With their help, the two parties don’t need the services of intermediaries. With the help of this technology, transactions can occur automatically without the risk of fraud.

Benefits of Cardano

  • Cheap and fast transactions
  • The first multi-level blockchain
  • No scaling issue: the more users, the higher the network bandwidth
  • Strong team

Disadvantages of Cardano

  • It is only a concept; it is not completely finished product so far
  • There are problems with the official wallet
  • Strong competitors in existing products in the niche

What is HBAR?

Hedera is a distributed ledger technology based on an entirely new hashgraph mechanism of reaching consensus. It is much more effective than the popular PoW and PoS.

The Hedera Hashgraph (HBAR) cryptocurrency is a token of the same-name platform. It allows users to make thousands of transactions per second without compromising security. The HBAR token gives holders access to decentralized applications built on the platform. It can also be applied for blocking shares, receiving passive earnings, and starting a node.

Hashgraph is a patented algorithm that, similar to blockchain, is fundamentally decentralized and has a high-security level achieved through hashing. However, it does not have the disadvantage of low transaction speed.

The most significant difference between Blockchain and HashGraph is probably that Hashgraph is a permission-based private technology. At the same time, a blockchain is public and not permission-based. A private network means that the identity and number of nodes on the network are known in advance, while there is no fixed number of nodes on the public network.

The main goal of Hashgraph is to allow users to make thousands of transactions per second without compromising security. At the same time, you need to remember that users usually don’t trust each other, so in Hashgraph, you still need to apply mathematical calculations to reach a consensus and enter transactions into the ledger.

When HBAR vs ADA compare, we can see that these two projects have similar goals. At the same time, technically, these are entirely different products. The first is powered by the Hashgraph technology and the second – by Blockchain. Let’s compare them in more detail.

Hashgraph vs Blockchain system

In the blockchain, network participants fight to build the main “trunk”. In Hashgraph, all network branches get the right to exist and develop simultaneously. It means that none of the nodes used in the transaction process can stop the entire process.

As a matter of fact, all participants in the Hashgraph create transactions that several other participants must confirm in a random way.

Everyone knows that the essential feature of all distribution ledgers is public openness. In Hashgraph, information about transactions is distributed chaotically from one communication node to another. A particular algorithm called “Gossip about Gossip” takes part in this exchange of information.

Benefits of Hedera

Hedera Hashgraph is much faster than popular cryptocurrency blockchains. The main feature of this technology is the ability to process transactions in parallel. The whole process takes a matter of seconds.

The Hedera platform uses the same programming language that Ethereum does – Solidity. This platform can also be used to create decentralized applications. There are many other use cases here (digital identity, games, Defi, payment systems, etc.).

The project also offers extremely affordable fees and quick transactions. A transaction can be completed in seconds, and the fees are less than 1 cent. In comparison, Bitcoin transactions take an average of 10 minutes to confirm. And the average transaction fee is $18.

Disadvantages of Hedera Hashgraph

Hedera Hashgraph is a proprietary technology and is not publicly available. That is, developers can’t fork protocols.

With only 39 managing companies, it is doubtful to suggest that Hedera Hashgraph is a decentralized cryptocurrency. However, each of them has a high-class reputation. For this reason, they are unlikely to make decisions that can harm the network.

Conclusion

Despite all their differences, the cryptocurrency projects Cardano and Hedera Hashgraph have common goals. Cardano developers want to make a third-generation blockchain. The creators of HBar rely on a new technology called Hedera Hashgraph. These projects want to popularize cryptocurrency payments and make them fast, convenient, and affordable for all people in the world.

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