Cardano (ADA) and Solana (SOL): What you need to know about the new cryptocurrency coins in Malaysia

This post is brought to you by Luno.

This year, cryptocurrency investors in Malaysia get to choose up to nine digital assets to invest in, with the latest two approved coins by the Securities Commission being Cardano (ADA) and Solana (SOL). These new investible digital assets are now available on Luno, Malaysia’s leading digital asset exchange.

The introduction of Cardano and Solana provides fresh opportunities for new investors to explore the world of cryptocurrency and seasoned ones to expand their portfolios. However, like any other new cryptocurrency coins, it is highly recommended that you first learn the basics before investing.

So, are you ready to broaden your cryptocurrency horizons? Read on to find out more about Cardano and Solana.

Cardano (ADA): One of the leading networks for building and operating decentralised applications (dApps)

Dubbed the next-gen Ethereum, Cardano uses the ‘proof-of-stake’ model to verify transactions and activities on its network. In other words, validators are able to validate transactions by staking Cardano’s native token, ADA, and be in the running to receive more ADA as rewards.

Cardano’s supporters believe that this transaction validation model makes the network faster and more energy efficient, as large amounts of computing power are not required in its creation. On top of speed and sustainability, ADA has a capped supply of 45 billion, meaning no more ADA coins will be created once this amount is in circulation.

Like Ethereum, Cardano enables the development of dApps and allows developers to build and deploy smart contracts on top of its blockchain. However, what is different with Cardano is that its blockchain is designed to be more scalable and efficient. In addition, Cardano emphasises a research-driven approach to enabling applications on its network, a method believed to help its adoption among cryptocurrency users.

Solana (SOL): A speedy, low-fee network for dApps

Solana is another contender for the Ethereum throne. Its fast and scalable network has allowed for a booming development of dApps, non-fungible tokens (NFTs), and decentralised exchanges. Solana is unique because it solves one of blockchain’s primary weaknesses: transaction speed.

To date, Solana is widely recognised as the fastest cryptocurrency network, able to accommodate up to 50,000 transactions per second. It does this by verifying transactions through the proof-of-history model, which records the passing of time into the blockchain ledger. This process provides a historical record of a transaction taking place at a specific time.

As a result, the Solana network is much faster than traditional blockchains like Bitcoin and Ethereum, contributing to reduced network congestion and low processing fees. Such low costs and high speeds were projected to enable Solana’s scalability to compete with centralised payment processors such as Visa and Mastercard.

5 differences between ADA and SOL: Which one should you invest in?

On the surface level, Cardano and Solana share some similarities — both support dApps, fast transaction processing speed, low fees, and excellent scalability. However, there are differences worth paying attention to, so you know which one meets your cryptocurrency investment goals. To help you make an informed decision before investing in a digital asset platform like Luno, here are the differences between Cardano and Solana:

For more information on Cardano and Solana and cryptocurrency in general, you may check out the Luno Discover blog.

Start investing in ADA and SOL on Luno Malaysia; the leading and regulated platform to invest in cryptocurrencies safely

Whichever cryptocurrency you choose to invest in, make sure you are on a regulated and highly secured digital asset exchange platform, like Luno. In addition to these two cryptocurrencies, the Securities Commission-approved platform also features other approved cryptocurrencies that are readily available for you to invest in like Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, Chainlink, and Uniswap.

Sign up with Luno and refer to your friends for Bitcoin rewards:

1. Share your unique invite code with your friend from the Rewards Page
2. Your friend signs up, deposits and buys RM250 in crypto from Luno’s Instant Buy or Sell
3. You both get RM25 in free Bitcoin

*Read more on the Terms & Conditions for Luno’s referral programme here: www.luno.com/en/legal/rewards-and-promotions

This article is for educational purposes only and you should not construe any such information as investment or financial advice. Investing in cryptocurrency is high risk and may result in the loss of capital as the value can fluctuate. We recommend individuals to consult with a licensed financial planner for detailed financial advice on whether cryptocurrency is a good investment option.

Read more on Luno’s Terms of Use and risks associated with cryptocurrencies here: www.luno.com/en/legal/terms