Cardano is going to become faster than Solana without sacrificing its decentralized ethos. That’s what Charles Hoskinson, Cardano founder is saying about the upcoming upgrade. Solana fans are outraged, as of now, their favorite blockchain is so much faster, it simply leaves Cardano in the dust. Let's get to the bottom of what's really going on.

At press time, Solana is sitting firmly at #5 of the top cryptocurrencies list with $61 Billion of market cap and a bit over 1.4 Billion trading volume in the last 24 hours.

Cardano is trailing behind, it’s at #11 with a significantly smaller market cap (a bit shy of $12 Billion) and a way more humble trading volume in the last 24 hours (around $188 Million).

It’s also worth mentioning that Solana is blazing fast, with almost 65 times faster transaction speeds. And also SOL is worth $132, at the moment, while ADA, Cardano’s native token, is $0.33.

It looks like we are talking different leagues here.

Well, not so fast.

Hoskinson of Cardano claims the things are about to change. Is he serious? Is Cardano on the verge of a serious breakout?

The Gauntlet Is Thrown: Hoskinson's Bold Claim

In a move that's got crypto Twitter buzzing, Cardano founder Charles Hoskinson has thrown down the gauntlet.

He claims an upcoming upgrade will make Cardano faster than Solana, its high-speed rival. This bold statement has set the stage for a showdown in the blockchain world.

The drama kicked off with a community poll. It pitted funding for a Rust node against a new feature called Leios. Hoskinson didn't mince words. He said the Rust node would do zilch for users.

But Leios? That's where the real action is.

"Leios will make us faster than Solana," Hoskinson declared. He's not mucking about. This upgrade, he says, will turbocharge Cardano without sacrificing its decentralized ethos. And this is already a rather aggressive attack on the competitor, because Solana partially owes its high speed to excessively high centralization. At least, this is what many users and experts think.

Speed Demons: Cardano vs. Solana

Let's crunch some numbers.

Cardano currently handles over 1,000 transactions per second (TPS). Not too shabby. And way too faster than two leading cryptos - Bitcoin and Ethereum (7 and 12 TPS, respectively).

Cardano uses a Proof-of-Stake (PoS) system called Ouroboros. This setup allows for quick processing and high throughput.

But wait, there's more. Cardano's also got Hydra, a Layer 2 scaling solution. It lets transactions happen simultaneously, giving performance a serious boost. And Leios is coming, the upgrade Hoskinson is referring to, but we will get back to that in a minute.

Now, let's talk Solana.

This blockchain's been turning heads with its blistering speed. We're talking up to 65,000 TPS. How does it pull this off? It's all thanks to a combo of Proof of History (PoH) and PoS.

PoH acts like a cryptographic stopwatch. It timestamps transactions, cutting down validation times big time. This dual approach has made Solana one of the fastest blockchains out there.

Now wonder, Solana is gaining momentum with all the meme coins, NFTs and DeFi trends. Developers are desperate to make use of the blazing speed to make their products more competitive.

And that is exactly what Cardano is targeting, according to Hoskinson.

The Leios Upgrade: Cardano's Secret Weapon?

So, what's this Leios upgrade all about?

It's also known as Ouroboros Leios. The idea is to separate transaction diffusion and computation from the blockchain's ordering system.

Sounds complex, right? Let's break it down.

According to the Cardano Forum, Leios introduces three new block types. You've got your Ranking Blocks (RB), Endorsement Blocks (EB), and Input Blocks (IB). The Input Blocks hold the transaction data. Ranking Blocks act as references. This setup shrinks the data needed to record transactions on the blockchain.

The end result? Cardano should be able to handle way more transactions without breaking a sweat. And it'll do it while keeping things decentralized. Pretty neat trick, if they can pull it off. And Hoskinson is eager to convince everyone that it's not only possible, it's bound to happen. Though he is cautious enough not to tell exact figures of the TPS that Leios could help Cardano to achieve. He only mentioned briefly that Cardano will be faster than Visa is (which is approximately 4,000 TPS). But that’s not to much to discuss, as Solana is already significantly faster.

Solana's Counterpunch: The Firedancer Upgrade

And Solana's not sitting on its hands.

It's gearing up for its own upgrade called Firedancer. The goal? You won’t be surprised, but it is about pumping up those transaction speeds even more. Oh, and boost security and scalability while they're at it.

Firedancer, a new validator client for the Solana blockchain developed by Jump Crypto, successfully built its first accepted block on the Solana testnet in June.

The high-performance validator client is designed to enhance Solana’s transaction processing capabilities significantly. It introduces sharding support, which can dramatically increase the network’s throughput. 

Until now, Solana has only one validator client, unlike Ethereum or some other blockchains, which boasts several, making it more resilient to bugs and attacks.

Solana users are particularly excited about Firedancer because the network becomes more decentralized with the addition of another client. Security is also enhancing. 

It is expected that Firedancer will make Solana capable of processing 1 million transactions per second (TPS). Blazing speed, isn’t it?

Firedancer has been in the works since August 2022. And this bad boy is set to launch in Q4 2024. Pretty soon.

Two Arch Enemies: Cardano and Solana

Let us remind you how the rivalry began.

Cardano's the brainchild of Charles Hoskinson, who also co-founded Ethereum. It's a third-gen blockchain platform that's big on research. We're talking peer-reviewed academic stuff and formal verification methods. The goal? A secure and sustainable blockchain that can go the distance.

Cardano's secret sauce is its PoS consensus mechanism, Ouroboros. It's designed to sip energy, not guzzle it. And scalability? That's baked right in. The platform's split into two layers: the Cardano Settlement Layer (CSL) for transactions, and the Cardano Computation Layer (CCL) for smart contracts and dApps. This setup gives them flexibility when it comes to upgrades and maintenance.

Solana, on the other hand, was cooked up by Anatoly Yakovenko. Its claim to fame? Speed, baby. Speed.

It introduced PoH, which works alongside a PoS system. Think of PoH as a cryptographic clock. It timestamps transactions, streamlining the whole ordering process. This is how Solana manages to handle thousands of TPS.

Smart Contracts: The Battleground for Adoption

As we have already covered the speed comparison and TPS data, let's switch gears and talk smart contracts.

Yes, smart contracts that are the actual blood of the DeFi markets. Some users and developers are even more interested in how the smart contracts are implemented than in what peak speeds can the blockchains achieve.

So, Cardano uses Plutus, a smart contract language based on Haskell. They're all about security and reliability here. The platform's focus on formal verification aims to stamp out vulnerabilities in smart contracts. Cardano's ecosystem has been growing steadily since the Alonzo upgrade in September 2021, which brought full smart contract capabilities to the table.

Solana takes a different tack. It supports smart contracts written in Rust, C, and C++. This gives developers more options when it comes to programming languages. The network's high performance and low fees have attracted a ton of DeFi projects and NFT marketplaces. At its peak in 2021, Solana's total value locked (TVL) in DeFi protocols topped $10 billion. That's nothing to sneeze at.

Market Cap Showdown: The Numbers Game

OK, let’s talk money then.

When it comes to market cap, these two have been duking it out in the top 10 cryptocurrencies. As of mid-2024, Cardano's sitting pretty at about $12 billion, while Solana's significantly higher at $61 billion. These numbers show just how competitive this space is, with both ecosystems vying for the attention of big-time investors and everyday folks alike.

Both networks have made a name for themselves in DeFi. Cardano's been building its presence with projects like Minswap and SundaeSwap. Solana's still leading the pack with platforms like Serum and Raydium, plus a thriving NFT scene.

Both ADA (Cardano's token) and SOL (Solana's token) have been on one hell of a roller coaster ride. This reflects both the craziness of the broader crypto market and their own individual developments.

Cardano's ADA hit its all-time high of $3.10 in September 2021. This surge was driven by hype around the Alonzo upgrade, which brought smart contracts to the platform. But since then, ADA's taken a beating. It's trading around $0.33 as of now. What gives? Well, there have been delays in promised tech upgrades, and the market's getting more competitive by the day.

Solana's SOL token peaked at $259.96 in November 2021. This was fueled by its booming NFT ecosystem and some high-profile DeFi projects. But then the market tanked in 2022, and SOL nosedived. It hit lows around $9. The FTX collapse didn't help matters, given Solana's ties to the now-defunct exchange. But by mid-2024, SOL had bounced back to around $132. This comeback was driven by renewed interest in Solana's NFT and gaming projects.

Transaction Volumes: The Real Measure of Adoption?

Now here is one more field where you can see major differences between two popular altcoins.

When it comes to transaction volumes, Solana's leaving Cardano in the dust. This reflects Solana's laser focus on speed and throughput. According to data from Messari, Solana's averaging over 200 million transactions per month. This includes a mix of DeFi activity, NFT trades, and general network usage. Despite some network outages (which have drawn plenty of flak), Solana's user base remains highly engaged.

Cardano's adoption has been slower, but steady. And many users prefer it this way.

Its focus on academic peer review and a more measured release of features has led to slower, but consistent, increases in usage. Cardano's averaging about 10 million transactions monthly, driven mainly by DeFi protocols and staking activity. The platform's emphasis on decentralized governance and sustainability has earned it a loyal following, even if it's not matching Solana's raw transaction numbers.

The Green Factor: Energy Efficiency in the Spotlight

Sadly, not everyone in the crypto space cares enough about ecology. But these two arch enemies seem to care a lot.

And there are definitely some things to boast from both sides.

Cardano's PoS mechanism is pretty energy-efficient compared to proof-of-work (PoW) systems. According to the Cardano Foundation, the network consumes about as much energy as 600 U.S. households annually. That's not too bad in the grand scheme of things.

Solana's PoS and PoH mechanisms also help keep energy use down. A report by the Solana Foundation claims that a single Solana transaction uses less juice than two Google searches. That's pretty impressive if it holds up.

The Road Ahead: Who Will Win the Blockchain Race?

So, where does this leave us?

Solana's currently got the edge in raw speed, that's for sure. But Cardano's not throwing in the towel. With upgrades like Leios on the horizon, they're gunning for that top spot.

Will Cardano really be able to overtake Solana in the speed department? It's too early to say for sure. In the end, it might not come down to raw TPS numbers. Factors like security, decentralization, and ease of use will all play a role. But one thing's certain: this race is far from over. Both platforms are pushing the boundaries of what's possible in blockchain technology.