Recently, Charles Hoskinson, the creator of the Cardano blockchain, stirred conversations in the cryptocurrency sector by claiming that an upcoming upgrade will allow Cardano to outpace Solana in transaction speed.
This remark came after a community poll regarding budget distribution for two rival proposals, showcasing his plan to make Cardano more competitive.
Could ADA Outperform SOL?
The poll was aimed at determining whether to fund a Rust node enhancement or a new feature named Leios. Hoskinson mentioned that the Rust node wouldn’t offer any unique advantages, while the Leios feature is expected to boost Cardano’s speed while keeping its decentralized nature intact.
This confident claim underscores Hoskinson’s belief in the technological progress Cardano is making as it attempts to better compete with other blockchains. He suggested that these improvements could elevate Cardano’s speed beyond that of Solana.
Currently, Cardano handles more than 1,000 transactions per second (TPS) using its Ouroboros consensus algorithm, which is based on a Proof-of-Stake (PoS) system. This setup contributes to rapid transaction speeds and increased throughput.
Moreover, incorporating the Hydra Layer 2 scaling solution allows for multiple simultaneous transactions, enhancing overall performance.
In comparison, Solana is known for its impressive transaction speeds that can peak at 65,000 TPS. This capability results from its use of Proof of History (PoH) alongside PoS.
PoH acts as a cryptographic timeline for transactions, which significantly speeds up the validation process. This combination has secured Solana’s reputation as one of the fastest blockchains available.
Major Upgrades on the Horizon for Cardano and Solana
The upcoming Leios upgrade, also known as Ouroboros Leios, aims to separate transaction diffusion and computation from the blockchain’s ordering process.
As per the Cardano Forum, the upgrade introduces three new types of blocks: Ranking Blocks (RB), Endorsement Blocks (EB), and Input Blocks (IB). Input Blocks contain transaction information, while Ranking Blocks act as references, significantly minimizing the data required to record transactions on the blockchain.
This new structure is expected to allow Cardano to efficiently manage a higher volume of transactions, facilitating scalability while adhering to decentralized principles.
While Cardano prepares for the implementation of Leios, Solana is also getting ready for its Firedancer upgrade, anticipated to roll out in Q4 2024. The Firedancer upgrade focuses on improving transaction speeds, security, and scalability, further solidifying Solana’s competitive position.
Hoskinson indicated that an active prototyping team at Input Output Global (IOG)—the development firm behind Cardano—is diligently working on the Leios design, with momentum expected to increase after finalizing the Peras CIP (Cardano Improvement Proposal).
Overall, while Solana currently showcases superior transaction speed, distinct differences exist between the two blockchains. Whether Cardano can match or exceed Solana’s performance in this aspect remains to be seen, as claimed by its founder.
As of now, ADA is priced at $0.327, showing a 3% decline in the last 24 hours and over a 5% drop in the past week.
Featured image from DALL-E, chart from TradingView.com.
