Ethereum, in recent times has already stood as the leader within the decentralized space, having a huge share in DeFi, DEX, DApps, NFTs and more. While the second-largest crypto does have some limitations, projects like Cardano emerged as a strong alternative to Ethereum. Currently, Cardano & Ethereum are the two largest competing projects working on smart contracts.
The comparison between both the projects has been carried out many times as their offerings collide notably. Moreover, the developers also prefer both the chains to build & run programs. While the core of any blockchain is the algorithm it follows to validate the transactions, Cardano & Ethereum use different mechanisms.
Will Cardano ever surpass the crypto with nearly 10 times its market capitalization?
Founded by the co-founder of Ethereum, Cardano is a multi-layer blockchain operating on the Proof-of-Stake to validate the transactions. The core of the Cardano consensus is the Ouroboros algorithm that aims for a high level of security with efficiency.
It is a third-generation blockchain after Bitcoin & Ethereum that focuses on scalability, interoperability & sustainability. Cardano also focuses on swelling costs, usage of energy and transaction time.
Deep Dive into How Cardano works?
Just a little over a month ago, IOHK developers had successfully hard forked the Cardano testnet with the Vasil upgrade. Cardano’s Vasil Hard Fork is the next step in its plan to improve upon the speed and scalability of the network. This essentially brings the project one more step closer to dethroning the largest smart contract and DeFi platform out there – Ethereum. With this latest upgrade, Cardano’s developers hope to improve the efficiency of smart contracts to make Cardano cheaper and faster to use.
We’re happy to report that today at 20:20 UTC the IOG team has successfully hard forked the #Cardano Testnet. This is an important next step in the journey towards the Vasil upgrade on mainnet. 🧵
— Input Output (@InputOutputHK) July 3, 2022
Ethereum is the second-largest cryptocurrency after Bitcoin founded by Vitalik Buterin & Gracin Wood. It is considered to be one of the primitive decentralized chains built on blockchain technology defying the issues of the Bitcoin blockchain. Ethereum is the home of decentralized Apps, Finance, etc and many other products that run with the help of Smart Contracts.
The platform is powered by its native currency Ether or simply ETH which is the base of any smart contract. In the upcoming days, the platform is all set to upgrade to ETH 2.0 or Ethereum 2.0 where the drift from Proof-of-Work to Proof-of-Stake is scheduled to take place. With the shift, the validators are expected to take over the miners to make the entire process of validating the transaction energy efficient.
Additional Read: How Ethereum Works?
Ethereum’s Merge – which is set to transition the Ethereum blockchain from a proof-of-work consensus mechanism to a proof-of-stake consensus mechanism. This move is intended to create a more energy efficient ETH network that has greater scalability capabilities too.
According to official sources, this move is expected to come by as soon as by the middle or end of September, 2022.
Additional Read: Ethereum Merge Update
|Launch date||27-September-2017||Whitepaper was published in 2013 but the network went live in 2015.|
|Founders||Charles Hokinson||Vitalik Buterin along with Gravin Wood and many other developers|
|Blockchain protocol||Ouroboros Protocol||Currently Proof-of-Work mechanism which may be soon switched to Proof-of-Stake|
|Use case||Smart-Contract, NFT, DApps & Crypto supported||Smart-Contract, NFT, DApps & Crypto supported|
|Market Cap*||INR 1.30 trillion||INR 11.52 trillion|
|Circulation Supply**||33.74 billion ADA||121,293,488 ETH|
|Consensus method||Proof-of-Stake(PoS)||Proof-of-Stake & Proof-of-Work|
|Cardano has a great development team with a pre-reviewed platform to ensure the stability||No intermediary is required to carry out transactions and hence a better, low cost & efficient way to send money across the world|
|It is a multichain layer that uses settlement layer & computational layer to ensure unlimited scalability & quick transactions||There is no downtime as the servers are not controlled by a single entity|
|Cardano is open-sourced platform with code written in Haskell programming language||Ethereum is environmental-friendly and easy to mine, unlike Bitcoin|
|The chain is secure and provides digital identity to unbanked citizens across the globe.||As the protocol is open-source, the community is growing constantly being stronger, efficient and secure|
|Cardano has not accomplished with development phase with a lowered pace||Complicated programming language used called solidity|
|Limited transactions can be processed within a second||Low Network Stability and prone to network congestion|
|The platform is more prone to 51% attack as the algorithm that claims to sync the ledgers appear to be unrealistic||Currently little less cost-effective due to miners rewards that may be fixed with the merger|
|75% of ADA is not in circulation but staked||Ethereum has no specific rules for a fork as a fork can take place whenever people holding ETH disagree with any ongoings on the network|
Cardano’s price has been swinging within an extended descending triangle ever since it reached its peak in September 2021. The asset had gained significant bullish momentum in mid-March, but a couple of events impacted the price negatively. Currently, ADA price is trading at 18-month low levels and waiting for the right time to break above the range-bound consolidation.
The ADA price could not display any major change ahead of the quarterly close as the market conditions are pretty uncertain. However, with the beginning of Q3 or by the mid, an ease in the selling pressure may elevate the prices to some extent. By the end of 2022, the price could break above INR 60 to reach INR 100 levels.
Additional Read: Cardano Price Prediction
The Ethereum price ever since recorded its peak in Q4 2021, has been trading within a huge descending channel. Currently, it appears that the price is trying hard to halt the descending trend but the bears still appear to be active and may jump in action any time from now. However, since the beginning of June, the volume has risen sharply while dominated by the bears.
Therefore, a significant inverse movement may still be in place despite the minor upward swings. To end the Q2 trade, the prices are expected to hover close to INR 1 lakh and continue to accumulate in the first few days of Q3. By the end of 2022, the ETH prices could rise high and settle above INR 2 lakh or INR 2.2 lakh.
Additional Read: Ethereum Price Prediction
Check out latest: Cardano Price to INR & Ethereum Price to INR
Cardano & Ethereum, both have secured their respective places within the top 10 for a long time? Moreover, ADA was the top 3rd token after Bitcoin & Ethereum for some time and was expected to challenge ETH’s dominance shortly. While Ethereum can handle 10 to 15 transactions per second, ADA can manage 250. However, with the launch of ETH 2.0, the TPS is expected to spike to 100,000 reducing the congestion and fees.
Currently, both the assets have drained a little after undergoing a notable upswing and hence one can expect the resurgence of a strong upswing soon. Cardano is displaying huge strength and hence the Q3 & Q4 may be profitable. On the other hand, with the PoS, and PoW merger, ETH price is also expected to gain significant bullish momentum.
Therefore, one can consider both the assets as profitable investments.
Also Read: Top 10 Crypto to Invest
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*Price Data as of August 2022
Cardano & Ethereum, despite operating on decentralized applications and smart contracts, differ in speed, the mechanism used, and scalability.
Both the tokens can be considered a good investment tool for the long term as ADA & ETH are expected to surge significantly.
Cardano has been developed to address the issues with the Ethereum chain along with additional features. But Ethereum is also getting loaded and soon could be transformed to ETH 2.0. Therefore, it may be too early to say whether Cardano will be the next Ethereum or not.
Currently, Cardano can manage 250 transactions per second compared to 10 to 15 transactions. However, with the launch of ETH 2.0, the TPS is expected to shoot up to 100,000.
Currently there are 33,752,565,071 ADA coins in circulation compared to 121,293,488 ETH coins.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. In case you have any queries, write to [email protected].
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