Ethereum Vs Cardano
Cardano (ADA) is an open-source, proof of stake blockchain to build and run smart contracts and other decentralized protocols. The platform started developing as a third-generation blockchain in 2015 and was launched in 2017 by Charles Hoskinson who is also the co-founder of Ethereum. It was also the first blockchain to be thoroughly peer-reviewed by academic experts from the field. In contrast to Ethereum, Cardano addresses the scalability issues, interoperability, and sustainability issues just like Polkadot, Cosmos, Polygon, etc. If you want to know more about the basics of Cardano, please check out this guide by @crypto-guides - What is Cardano coin (ADA)? - Cardano Guide
In this blog, we are going to look at some of the key differences between Cardano and Ethereum and ultimately try to judge which one is better. Let's get started!
Key Differences Between Cardano & Ethereum
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Technology: Ethereum was the first blockchain platform to introduce & process smart contracts, while Cardano can do that with governance and compliance. Cardano could operate with metadata and also with automated regulation. On top of this, it can bring identity to the blockchain system. Ethereum is currently winning the smart contract race since there are thousands of DApps running successfully on the network. Cardano's smart contracts will get released during the end of August 2021 or early September.
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Consensus: Ethereum is currently going through multiple year-long upgrade called Ethereum 2.0 which will transition the consensus algorithm from Proof of Work (POW) to Proof of Stake (POS). Cardano already uses Proof of Stake (POS) algorithm called Ouroboros.
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Speed: Cardano claims to process about 1 million transactions per second. Ethereum 2.0 is estimated to process about 100k transactions per second.
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Supply: Cardano (ADA) has a fixed supply of 45 billion coins, with 32.9 billion already in circulation. Ethereum has an unlimited supply but an annual maximum supply of 18 million ETH.
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Foundational Support: Ethereum is backed by Ethereum Foundation which is a non-profit organization dedicated to supporting Ethereum and related technologies. It is led by Vitalik Buterin and his team and it's based in Switzerland. It also accepts contributions from other community developers which are building on Ethereum. Cardano Foundation is also a Swiss-based non-profit organization that legally owns the Cardano brand and supervises its progress. It works with IOHK and EMURGO to ensure that Cardano is being developed and promoted as an efficient blockchain platform for anyone to use. Cardano technology is battle-tested by academic research and development. It follows a peer-review process at every stage done by industry experts.
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Community & Adoption: Ethereum's community is huge since there are so many people involved in its ecosystem all over the world building DApps and Technologies to expand its ecosystem. Cardano's community is yet to be established but it's growing as we nearing the launch of smart contracts functionality on their mainnet. Once it's fully functional, we might see a shift of market sentiment towards Cardano.
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Social Impact: Cardano Network has collaborated with the governments of Ethiopia, Tanzania, and Georgia to benefit their citizens and give them access to blockchain-based services. For example, Ethiopian schools will use Cardano to track student performance while the Ministry of Education will run a Cardano Full Node. Apart from developing a strong ecosystem, Ethereum has built a close-knit community of developers and innovators who are benefiting from the current crypto boom directly or indirectly. Recently Vitalik donated $1 billion in crypto to India Covid Relief Fund and various other charities.
Is Cardano The Ethereum Killer?
From day 1, Cardano was all about scalability, interoperability, and sustainability which Ethereum is trying to accomplish with Eth 2.0. The on-chain governance system on Ethereum is missing which Cardano already has. Developers propose changes through code updates and each node votes on whether to accept or reject the proposed change. This is important for the security of the network and solves the centralization problem to a great extent over time. As per data from Staking Rewards, $40 billion worth of ADA coins (70.31%) are currently staked, making it one of the most decentralized blockchains in the world.
Both Cardano and Ethereum have seen a series of upgrades and several adoption events worldwide. This year is important for both ecosystems to move ahead in the smart contracts race. Even though Ethereum has a first-mover advantage and it will most likely become the gateway to web 3.0 we cannot ignore Cardano's scientific and structured approach. Both blockchain platforms can co-exist and change the financial industry in the next few years.
What do you guys think? Can Cardano win the smart contract race and become bigger than Ethereum? Please comment below.
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