Dogecoin and Cardano

Industry Wired presents a comparative analysis of the two most popular cryptocurrencies- Dogecoin and Cardano

Cryptocurrencies are becoming ubiquitous, and are dominating the fintech industry in the current age. The most popular cryptocurrencies are alluring to investors who are investing in diverse cryptocurrencies to expand their portfolios. This article provides a comparative study between Dogecoin and Cardano, the two most popular and the cheapest cryptos in the crypto market.

The story of Dogecoin or DOGE, a cryptocurrency that began as a joke. Bitcoin, the original cryptocurrency, was a great technological advancement that let anybody trade digital money at low expenses and without the need to request anybody’s permission. But Bitcoin was likewise open-source, which means everybody could duplicate it or copy it, and at a certain point, everybody did, with clones, for example, Litecoin and Peercoin came up all over the place. Dogecoin is an interesting rather hilarious response to this pattern. Made in December 2013 by software engineers Billy Markus and Jackson Palmer, it’s a duplicate/copy of Bitcoin (all the more definitively, Litecoin, which itself is genuinely similar to Bitcoin) that includes the Shiba Inu dog and is quite often referred to in silly language with a dog and moon-related metaphorical representations.

Nearly consistently, Dogecoin garnered a devoted following. It attracted individuals who preferred the idea of crypto yet needed to make fun out of Bitcoin. It attracted individuals who adored dogs. It attracted any individual who wasn’t especially genuine or anything serious about crypto, yet wanted to show interest.

But it still may struggle to grow any further because of the following reasons:

  • It doesn't have a whitepaper or full-time team. Dogecoin has a huge community of loyal fans, but nobody is leading the ship.
  • The price is heavily dependent on tweets from Elon Musk. The Musk effect has powered a lot of Dogecoin's price jumps, and that's not a sustainable driver of growth.
  • One person owns 28% of Dogecoin. Almost a third of all Dogecoin is sitting in one anonymous wallet. And around 100 wallets hold about 65% of the total DOGE market. So a small group of people (and one in particular) can have an outsized impact on the price.
  • There's a lot of competition in the digital payment space. Fast and cheap transactions are an attractive feature of digital currencies, but the introduction of stablecoins and government-backed currencies could undermine that market.
  • Most importantly, several exciting projects are breaking new ground and using blockchain to do exciting things. Here are three that have strong chances of success.

Cardano was founded by Charles Hoskinson, one of Ethereum's co-founders. It's a third-generation cryptocurrency. Rather than upgrading to address issues of scalability and energy consumption, Cardano used lessons from Bitcoin (BTC) and Ethereum to design a whole new blockchain. It's built to be faster and more sustainable from the outset.

Cardano's biggest draw, however, may also be its biggest weakness. The team peer-reviews each step before deploying it. That means Cardano's blockchain will eventually function like a finely-tuned engine. However, it's also taking a long time to develop. For example, Cardano only plans to launch smart contracts in September. Other programmable blockchains have been running them for years.

On the plus side, Cardano also has proven real-world capabilities. It's got various projects in developing countries, such as a partnership with the Ministry of Education in Ethiopia. That pilot scheme will use Cardano's blockchain to record the academic progress of 5 million students, giving them all tamper-proof educational credentials. It remains to be seen whether Cardano's slow and steady approach is too slow or too steady, but I believe it has a bright future.

Dogecoin is synonymous with volatility in the digital currency market. Yes, big names like Elon Musk, CEO of Tesla and SpaceX, solely drive its price. Nothing more than a hint from Musk or a picture of his Shiba Inu dog could drive the dogecoin investors crazy. Born out of the famous Shiba Inu meme that made many laugh, dogecoin came a long way from the very beginning. After maintaining a low profile for almost half a decade, dogecoin investors played a trick with Reddit to make the crypto trending.

However, dogecoin overtaking bitcoin in the recent future seems very unlikely. Dogecoin is inflationary, is not a store of value, has no institutional investment interest, has a limited use case, and is worse than USD as a currency.

Cardano is arguably the most sophisticated blockchain on the market with a peer-reviewed and multi-layered smart platform that supports numerous Defi, Daaps, and other smart capabilities.