Some cryptocurrency projects and media have been referring to Cardano as the “Ethereum Killer” for years. While not everyone agrees with this description, it all stems from the fact that essentially both Cardano and Ethereum are designed to do the same thing, that is run smart contracts and decentralized applications or DApps.
Cardano, like Ethereum, is a decentralized blockchain platform. it uses the Ouroboros proof-of-work algorithm. It was created to facilitate peer-to-peer transactions and smart contracts that help developers build secure, decentralized applications powered by Cardano’s native cryptocurrency, ADA. It is also the first blockchain proof-of-stake platform founded on peer-reviewed research and developed through evidence-based methods.
On the other hand, Ethereum describes itself as “the world’s programmable blockchain.” It was created to allow developers to create and publish smart contracts and distributed applications. These applications are meant to use for processing different types of financial transactions and store data for third-party applications.
To put things in context, we can conceive of Cardano and Ethereum as smartphones that allow you to download and install different applications on your mobile device. However, they differ in the following significant aspects that we will comment on below.
Comparison of Cardano and Ethereum
History
Ethereum was conceived by programmer and co-founder Vitalik Buterin in 2013 and was launched on July 30, 2015. It is a proof-of-work blockchain that allows network users to create, publish, and monetize applications on the platform using your native cryptocurrency, Ether or ETH, as payment or gas fee.
Ethereum co-founder Charles Hoskinson saw firsthand the potential problems with a proof-of-work blockchain, specifically in regards to its sizing and environmental impact. It began developing the Cardano platform as a proof-of-stake blockchain in 2015. It launched in 2017, along with its native cryptocurrency ADA, named after Ada Lovelace, the 19th-century countess and mathematician considered to be the first computer programmer.
For years, Ethereum has consistently held second place on the charts, after Bitcoin. As of November 2021, its native cryptocurrency ETH has a market cap of $521 billion on Coingecko and is the second-largest cryptocurrency by market cap.
On the other hand, Cardano has been climbing the charts steadily over the years. ADA has a market capitalization of $51 billion as of November 2021 and at the time of writing is sitting at #6 on the charts.
Although Ethereum has an unlimited contribution, the annual maximum is set at 18 million ETH. In contrast, Cardano has a maximum contribution of 45 billion ADA.
Pros and Cons
There is no doubt that Ethereum is one of the most important and popular cryptocurrencies at the moment and its native token, ETH, has consistently held second place to Bitcoin (BTC) in the market.
With the rise of NFTs or non-fungible tokens, which are digital assets that prove ownership of unique items, Ethereum has gained even more popularity as it is where most NFTs are hosted, alongside decentralized finance or DeFi.
On the downside, Ethereum currently uses the Proof-of-Work (PoW) consensus protocol to verify transactions and ensure network security. The proof-of-work protocol, which is also used by the bitcoin network, is criticized for consuming large amounts of energy and being unsustainable from an environmental point of view. While Ethereum is working on transitioning to a proof-of-stake protocol, this is easier said than done, and in the process, the cryptocurrency giant has experienced significant difficulties and delays.
Unlike Ethereum, Cardano and hokkaido inu already uses a proof-of-stake (PoS) mining protocol, which is considered more environmentally friendly compared to the proof-of-work (PoW) protocol. It has also grown tremendously in terms of transaction volume and market capitalization in recent years, even becoming the No. 4 cryptocurrency in the world at one point.
Read More About: What is Ethereum?
Main Conclusions
As with all other cryptocurrencies, even the best-placed ones, the market is very volatile and you need to do your research before investing.
Both Cardano and Ethereum currently hold the top 10 cryptocurrencies by market capitalization, and both have strong projects and use cases to their credit. Ethereum has been on the market longer and has always been second only to bitcoin, although this does not mean that Cardano cannot catch up, considering that it has the same purpose and has an ecological advantage. When it comes to cryptocurrencies, anything can happen, so only time will tell which one is more successful in the long run.
If you want to explore the possibility of investing in cryptocurrencies such as ADA from Cardano and ETH from Ethereum.
