The blockchain technology that powers cryptocurrencies are an exciting new frontier for computer engineering. Yet, the field of cryptocurrency development is not without its controversy. Two major players in the cryptocurrency market are Cardano and ethereum, which have similar goals but different methods of achieving them. If you’re keen and excited in learning more about these two cryptocurrencies, read on!
The blockchain technology that powers cryptocurrencies is an exciting new frontier for computer engineering. Yet, the field of cryptocurrency development is not without its controversy. Two major players in the cryptocurrency market are Cardano and ethereum, which have similar goals but different methods of achieving them.
So you’ve heard of Ethereum, right? It’s the new hot cryptocurrency that everyone is talking about. But did you know there was another player in town? Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source. It’s still pretty young, but it has some big-name supporters like Charles Hoskinson (co-founder of ethereum), so it’s worth knowing about! So let’s get into it…
What are the differences between Cardano and Ethereum?
There are five main differences between Cardano and Ethereum.
- The primary difference is that Cardano is a fully proof-of-stake (PoS) cryptocurrency, while Ethereum currently operates on a proof-of-work (PoW) consensus algorithm. The PoS protocol used by Cardano allows users to stake their coins in exchange for transaction fees and the generation of new tokens.
- The second difference is that Cardano uses a natural language protocol called “Turing Complete” while Ethereum does not.
- The third difference is that when you send funds to someone on ethereum, you actually transfer your coins to miners who then record them in their ledger, making you dependant on the miner’s honesty. When you send funds on Cardano, your transaction is directly recorded into the account statement by using a Recursive InterNetwork Architecture (RINA).
- The forth difference is that quantum computers can break the sha3 algorithm used by Ethereum to create smart contracts.
- The fifth difference is that Ethereum uses a proof-of-work consensus algorithm while Cardano uses the Ouroboros proof-of-stake algorithm, making it safer than the competition.
Pros and Cons of Cardano vs. Ethereum:
Pros of Cardano:
- Cardano’s proof of stake algorithm is built to be flexible, scalable, and more efficient than proof of work algorithms.
- Cardano aims to solve the scalability problem by layering a second set of smart contracts on top of the first layer. It means Cardano can scale infinitely without ever compromising security or speed.
- Cardano’s decentralized treasury produces conflict-free funding, meaning no one has an incentive to stifle Cardano’s growth for money. In addition, the consensus mechanism prevents outside groups from hijacking development through hard forks, meaning Cardano can serve as a neutral platform for all cryptocurrencies rather than favoring anyone in particular.
Cons of cardano:
- Cardano is relatively new, and untested. It has a lot to prove.
- Cardano has not yet fully implemented its product.
- There’s no Cardano whitepaper! Development for Cardano began in 2015 under founder Charles Hoskinson but has since evolved into a collaborative effort involving over thirty different companies, organizations, and scientists. The Cardano team decided not to release an official white paper because their technology is still undergoing significant development. Since Cardano’s mainnet launched in September 2017, it’s unclear where the project is heading long-term.
Pros of Ethereum:
- Ethereum is the first cryptocurrency to run smart contracts, which are essentially user-defined programs that can interact with other smart contracts on the network. Users pay “gas” to use these smart contracts and this helps fund maintenance of the Ethereum blockchain.
- Ethereum is the most used blockchain for building new cryptocurrency projects.
- Many developers are entering the space because of low barriers to entry.
- Ethereum’s community tends to be more open to new ideas (e.g., ETHEREUM CLASSIC, an older version of the network that split off after a disagreement over how best to scale).
Cons of ethereum:
Scalability remains an issue with transactions taking several minutes at minimum and gas prices increasing rapidly as usage increases; this calls into question just how useful it would be on a mass scale.
Less profitable than Cardano until 2020, at least based on one Cardano stake calculator, but profitability increases significantly by 2025.
Ethereum is a pioneer in crypto technology, but many feel it’s already too late to compete with Cardano.
How do both differ in terms of price, popularity, security, scalability, etc.?
Cardano is currently trading for $0.37 per Cardano token with a market cap of $5 billion. ethereum is presently trading at $481 per coin with a market cap of over $60 billion, making cardano significantly cheaper than ethereal. Cardano’s price will increase as its use case becomes better known and it gains adoption. Does Cardano have the second highest market capitalization after ethereum?
Cardano’s proof-of-stake protocol gives it faster confirmation times than ethereum but also makes cardano less decentralized by design. Cardano to solve this problem through subchains, Cardano is scalable without compromising security or speed. Cardano currently claims to be more decentralized than ethereum, with the cardano foundation controlling less than 10% of Cardano’s total supply.
Ethereum has a proven track record, and dozens of developers working on cardano still haven’t launched their mainnet . Cardano’s price will increase in the future as adoption grows over time. Cardano’s proof-of-stake (PoS) protocol gives it faster confirmation times than ethereum but also makes Cardano less decentralized by design.
Cardano aims to solve this problem through subchains, allowing cardano to scale without sacrificing speed or security. Currently, Cardano claims to be more decentralized than ethereum, with the cardano foundation controlling less than 10% of Cardano’s total supply.
What are their overall goals?
Cardano aims to be the first protocol to evolve out of a scientific philosophy and a research-first driven approach. Cardano’s staking system, which they expect, will solve the scaling issues currently faced by ethereum and improve upon ethereum’s consensus protocol by being more decentralized. Cardano attempts to solve scalability problems through subchains, which allows cardano to scale without sacrificing speed or security. Cardano claims that its staking method is more decentralized than ethereum because cardano foundation controls less than 10% of Cardano’s total supply (vice versa for ethereum).
Ethereum has an ambitious goal – becoming the decentralized world computer. Cardano aims to become the backbone of a fully open financial system. Cardano claims it will do this through peer-reviewed academic research, which Cardano hopes will come up with new ways to solve blockchain technology’s biggest problems.
What are their features?
Cardano uses a layered approach, in which the ledger is separate from the digital asset being traded on that ledger. This allows Cardano users to benefit from all the features of Cardano without the associated risks.
Ethereum has an ambitious plan that includes transitioning into a proof-of-stake system sometime this year, which will speed up transaction times and reduce fees. Cardano’s cardano also uses a proof-of-stake system but is still in its early stages with slow transaction times and high fees.
Cardanos settlement layer (which handles internal transactions) is separated from the computational layer (which processes intelligent contracts), which makes cardano more secure than ethereum. Cardano’s two layers also allow cardano to act as a store of value like bitcoin by having more exclusive features built into both layers.
How will these two cryptocurrencies affect each other’s future growth prospects?
Cardano is building itself up to be more than just a cryptocurrency and a library of decentralized apps. While Cardano’s blockchain will retain the properties of decentralization and security that current cryptocurrencies offer, cardano will have its own programming language called “Cassandra” that allows developers to build dapps on cardano.
Ethereum uses solidity in their development for smart contracts and dapps.
cardano and ethereum will be competing against each other to become the go-to platform for developing dapps, as they share many of the same goals.
What are some things cardano adds or changes? How about ethereum?
For example, cardano targets enterprise businesses right out of the gate with features like proof of stake consensus while still keeping decentralization with their proof-of-work consensus algorithm. Cardano also uses peer-reviewed research into the blockchain space to create the cardano platform. Cardano’s goal of becoming a store of value is what separates it from ethereum; cardano will still implement smart contracts, but cardano users can build dapps on cardano’s subchains, having both features without sacrificing speed or security.
Ethereums main change occurred when ethereum shifted its consensus algorithm to proof-of-stake (PoS) earlier this year, which speeds up transactions and reduces fees. Since Cardano release, Cardano’s price has fluctuated between $0.082 USD to $1.28 USD , while ethereum’s price has remained relatively stable, around $370 USD (although currently above that).
Is it too late to invest in either one Cardano vs. Ethereum?
It’s never too delayed to invest in cryptocurrency, Cardano or Ethereum . Cardano has been climbing in price over the last week while ethereum’s price has remained relatively flat. Cardano’s market cap is currently around $9 billion USD, and ethereums market cap is about $87 billion USD .
Cardano might be a good choice for investors who want to get in early on a growing cryptocurrency to become a more efficient global payment system. Cardano’s goal of becoming a store of value similar to bitcoin makes cards in any cryptocurrency.
It seems that there is a never-ending debate about what cryptocurrency will be the most successful. Cardano and Ethereum are both competing for this title, but they have very different approaches to achieving their goals. Cardano and ethereum both have a long road ahead of them. Many people are eagerly waiting to see which cryptocurrency will become the dominant force. What do you think? cardano or ethereum: which one will be king of the cryptocurrencies?
Cardano and ethereum both want to revolutionize blockchain technology and make cryptocurrencies more accessible to the general population. They also have very different ways of achieving this goal. However, cardano uses a ‘scientific philosophy’, while ethereum uses ‘a general-purpose computer’ (note that these aren’t official titles).
Cardano brings more side chains and faster processing speeds than its competitors (currently, three times faster than ethereum). On the other hand, ethereum’s strength rests in its ability to build applications on top of their blockchain.