Analyzing the Investment Potential of Cardano and Polygon

If you want to diversify your portfolio but cannot decide between ADA or MATIC, this post will clarify everything for you.

When looking at the top 10 cryptocurrencies by market cap, you will notice two blockchains that stand out from the usual culprits. Cardano and Polygon are projects that compete in different fields, yet are battling to remain in this privileged list of top cryptos. 

But what makes these two cryptocurrencies so special for investors? In this article, we compare ADA vs MATIC. We also provide a thorough overview of their fundamentals. Moreover, we will go over some of their goals and offerings so that you can forge an idea of their future potential. 

Innovation is key in this market. So let’s see if these blockchains check all the boxes when it comes to remaining future-proof. 

Cardano: Project Goals and Network Overview

Cardano has been around for quite some time in the industry. It launched in 2017, taking advantage of both the 2017 and 2021 bullish cycles and amassing a huge community in the process. 

It was in 2020 that this project finally started hitting its stride, as developers have been launching new features. From a simple PoS network (one of the first of its kind), Cardano has become a staple in the smart contract industry. Even though its roadmap has taken time to come to completion, the team behind the project has delivered on their promises. 

Many consider the Cardano network to be a direct competitor to Ethereum. It provides a scalable platform for launching dApps and NFTs and has backing from the scientific community. 

ADA Blockchain Technology Explained

Cardano uses a unique PoS consensus mechanism called Ouroboros. In this network, validators are chosen randomly to confirm transactions and create new blocks on the chain. The protocol divides the transactions into epochs, which last approximately five days. Each epoch provides rewards for the users that stake their ADA tokens and secure the network. 

Moreover, Cardano uses a layered architecture. This allows it to separate transactions from smart contract interaction. This provides high scalability and independence of the computational layer. As such, transactions remain near-instantaneous, regardless of network usage. 

ADA Crypto Potential

Ada Cardano graphic representation

One of the strongest assets of the Cardano network is its vibrant community. The network has supporters all over the world, helping to spread the word about the benefits and utilities of the Cardano blockchain. 

Moreover, there are still some upcoming upgrades to this blockchain. They include scaling solutions and governance models. The developers plan on adding sidechain capabilities to ADA, solving the scaling issues. 

Polygon: Project Goals and Network Overview

Polygon started as a layer-2 scaling solution for Ethereum. However, it became so much more over the years. Launched in 2019, Polygon has become one of the strongest blockchains. Its benefits include EVM compatibility and many scaling solutions. 

It has progressed significantly in the ZK-rollups field. These allow seamless roll-up transaction batches from the Polygon sidechain back to Ethereum. 

MATIC Blockchain Technology Explained

Polygon acts as a sidechain for Ethereum. It allows users to bridge assets like ETH, USDT, and other ERC20 tokens onto its network. Then, they can plug them into the thousands of scalable dApps deployed on the chain and access cost-effective DeFi solutions. 

The protocol executes transactions off-chain and then rolls up these in batches on the Ethereum chain. This allows for higher transaction speed and alleviates the strain on the underlying network. 

Since Polygon is EVM-compatible, porting existing applications on the chain becomes a breeze. This code portability allows the network to grow exponentially and propose ready solutions for its users. 

MATIC Crypto Potential

The Polygon team has been working towards providing additional scaling and interoperability solutions. 

Moreover, they have managed to secure some crucial partnerships. Those include leading companies like Coca-Cola, Reddit, and Starbucks. This allowed the MATIC token to perform well even in the bear market. 

As for innovations, Polygon’s Supernets upgrade has been announced. Moreover, the sidechain interoperability feature is expected soon. Polygon is setting itself apart as the #1 scaling for Ethereum. 

Cardano: Technical Features and Innovation

Cardano is a decentralized platform with a focus on security and scalability. It’s the first blockchain to use a proof-of-stake algorithm called Ouroboros. Cardano has a strong team of developers and researchers led by Charles Hoskinson, one of Ethereum’s co-founders.

The Cardano blockchain was built using peer-reviewed academic research, so you can be sure it was thoroughly tested before being released as an open-source product. This gives investors confidence in their investment decisions because they know they’re getting something carefully thought out by some of the world’s top minds in cryptography, mathematics, and economics!

Polygon: Technical Features and Innovation

Polygon is an open-source, scalable, and interoperable blockchain protocol. It will be built on Cardano’s Ouroboros proof-of-stake consensus algorithm and use its native token, POLY.

Polygon’s three main components are:

  • An intelligent contracts layer where developers can build apps that run over the Polygon network;
  • An application layer that allows users to interact with these decentralized applications (dApps);
  • A data layer that provides access to information stored in blockchains such as Ethereum or Bitcoin

Investment Potential and Market Analysis for Cardano and Polygon

Representation of a crypto graph

Cardano and Polygon are in the top 10 coins by market cap. This means that they have a lot of potential to grow in price and become more valuable, but it also means that there are other coins with more potential than Cardano and Polygon.

Cardano was founded in 2015 by Charles Hoskinson, one of Ethereum’s co-founders and an advisor for Polygon (although he isn’t directly involved with them). Both projects were started with an ambitious goal: solving some of blockchain’s most significant problems, such as scalability, interoperability, privacy, and sustainability, while also maintaining what makes traditional blockchains great such as immutability and decentralization.

Final Note 

While Cardano has a lot to offer, most of these offerings remain at a proof of concept stage. Polygon, on the other hand, provides real-world applications by onboarding competent developers. Moreover, the NFT and gaming community on Polygon is growing exponentially. On Cardano, it remains non-existent. 

This is similar to a comparison between SOL vs. EGLD, where one chain provides applicable products that users can enjoy. Even though it has strong potential for growth, Cardano lacks the practicality of Polygon.