It’s easy to see why Cardano could be an “Ethereum killer.” There are many differences between these two cryptocurrencies. However, they do have certain characteristics that could give one an advantage over the other. So what are these features that set them apart? Here’s a Cardano vs Ethereum comparison:
What Exactly is Cardano?
Cardano is a decentralized, open-source, and transparent blockchain platform. It is the first peer-to-peer network to use the Ouroboros consensus method. That is, using a proof of stake (PoS) consensus mechanism. The project began to compete with Ethereum in 2015 .
Cardano is more advanced in features compared to Ethereum. These features include;
- The capacity to send money in various currencies.
- A voting mechanism for stakeholder approval of network updates.
- A treasury system for fund distribution.
Furthermore, the Cardano team has recognized three major issues with today’s cryptocurrency exchange system. These issues are:
- Exorbitant fees.
- A lack of liquidity.
- Non-user-friendliness.
Cardano is developing an open-source and decentralized trading platform to overcome these issues. Charles Hoskinson is the founder of Cardano blockchain. He served as the CEO of BitShares and Ethereum which is one of the most compelling reasons to back Cardano. In addition, He leads IOHK alongside several other computer sciences and game theory experts.
Consensus Mechanism Based on Proof-of-Stake
Cardano was one of the first to use a new and more efficient algorithm. This is one reason Crypto enthusiasts call it a promising cryptocurrency. With proof of stake, there’s no need to invest in expensive mining equipment. In the first place, those mining equipment depletes natural resources and causes environmental harm. Therefore, this is a good thing.
Cardano vs Ethereum: What’s the Difference?
Cardano provides a superior power balance compared to Bitcoin and Ethereum. It takes a more secure approach to carry out transactions. This poses a threat to Ethereum. Especially with its blockchain that’s capable of executing smart contracts. Cardano bases its research on peer review. Plus, it avoids the flaws that plagued its predecessors. It can surpass Ethereum and Bitcoin by market capitalization. Therefore, Cardano is a good investment if you’re looking to buy the dip.
Ethereum, Cardano’s major competitor, is transitioning from proof-of-work (PoW) to proof-of-stake (PoS). Ethereum’s decision to switch from PoW to PoS is significant. Consequently, this change will save energy and improve scalability, with less hardware investment from consumers. The transition will occur this year. So, it will have significant consequences for the blockchain. Here’s a similar article of Ethereum vs Solana.
Conclusion
In conclusion, Ethereum has the first-mover advantage over Cardano in the industry. Ethereum’s simplicity makes it a more tempting blockchain for widespread adoption. But, Cardano may have certain technological advantages over the competition.
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