Will Cardano kill Ethereum? Cardano vs EthereumNovember 22, 2021
Cardano has been dubbed the “Ethereum Killer” by several crypto projects, shillers, and media platforms for several years now. While not everyone is on board with the idea, it all stemmed from the fact that at its core, both Cardano and Ethereum are designed to do the same thing, which is to support smart contracts and decentralized applications or DApps.
Cardano is a decentralized blockchain platform that uses the Ouroboros proof-of-stake algorithm. It was created to facilitate peer-to-peer transactions and smart contracts that will help enable developers to build secure decentralized applications powered by Cardano’s native cryptocurrency, ADA. It is also the first proof-of-stake blockchain platform founded on peer-reviewed research and developed through evidence-based methods.
Meanwhile, Ethereum describes itself as “the world’s programmable blockchain”. It was created to enable developers to build and publish smart contracts and distributed applications, and can also be used to process other types of financial transactions and store data for third-party applications.
To put things into perspective, you can think of both Cardano and Ethereum as smartphones that let you download and install different apps on your mobile device. However, they differ in several significant aspects that we discuss below.
Head to Head: Cardano vs Ethereum
Ethereum was conceived by programmer and co-founder Vitalik Buterin in 2013, and its network went live on July 30, 2015. It is a proof-of-work blockchain that enables users within the network to create, publish, and monetize applications on the platform using its native cryptocurrency, Ether or ETH, as payment or gas fee.
Charles Hoskinson, one of the co-founders of Ethereum, saw firsthand the potential issues of a proof-of-work blockchain, specifically when it comes to its scalability and environmental impact. He started developing the Cardano platform as a proof-of-stake blockchain in 2015. He launched it in 2017, together with its native cryptocurrency ADA, named after Ada Lovelace, the 19th-century countess and mathematician who is often regarded as the first computer programmer.
For years, Ethereum has consistently stayed second to Bitcoin in the charts. As of November 2021, its native cryptocurrency ETH has a market cap of $521 billion on Coingecko and remains the second top cryptocurrency by market capitalization. It reached an all-time high (ATH) of $4,878.26 on November 10, 2021, while its all-time low was $0.4329 on October 20, 2015.
On the other hand, Cardano has been climbing up the charts consistently over the years. ADA has a market cap of $51 billion as of November 2021 and currently sits at #6 on the charts as of writing. It reached an all-time high (ATH) of $3.09 on September 2, 2021, and its all-time low was $0.0192 on March 13, 2020.
While Ethereum has an unlimited supply, its annual maximum supply is set at 18 million ETH. In contrast, Cardano has a maximum supply of 45 billion ADA.
Pros and Cons
There is no doubt that Ethereum is one of the biggest and most popular names in the cryptocurrency space right now, and its native token ETH has consistently been second to bitcoin (BTC) on the market.
With the rise of NFTs or non-fungible tokens, which are digital assets that represent ownership over one-of-a-kind items, Ethereum has become even more familiar to more people as it is where the majority of NFTs are hosted, together with decentralized finance or DeFi.
On the downside, Ethereum currently uses the proof-of-work (PoW) consensus protocol in order to verify transactions and maintain network security. Proof of work, which is also used by the Bitcoin network, has long been criticized because it uses massive amounts of energy and is not environmentally sustainable. While Ethereum is working on transitioning to a proof-of-stake protocol, that has been easier said than done, and in doing so, the crypto juggernaut has experienced its share of growing pains and delays along the way.
Unlike Ethereum, Cardano already uses a proof-of-stake (PoS) mining protocol, which is considered more environment friendly compared to proof of work. It has also grown tremendously in terms of transaction volume and market capitalization over the past years, even going as far as the #4 cryptocurrency in the world at some point.
As with all other cryptocurrencies, even the top-ranking ones, you should first do your research before investing in them due to the highly volatile nature of the market.
Both Cardano and Ethereum currently occupy the top 10 ranks of cryptocurrencies by market cap, with both having solid projects and use cases under their belts. Ethereum has been around longer and has always been the second to Bitcoin, but this does not mean Cardano won’t catch up, considering that it also features the same purpose with an environment-friendly edge. When it comes to cryptocurrencies, anything can happen so only time will tell us whether who is in it better for the long run.
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