Cardano and Ethereum are two of the most well-known blockchain projects out there. Both of these digital currencies have made a name for themselves thanks to their innovative blockchain solutions. Both Cardano and Ethereum were designed to serve as platforms for decentralized applications (dApps). Both aim to provide a more user-friendly, cost-effective, and secure way of developing applications on a blockchain. However, Cardano and Ethereum are very different from one another in terms of their goals, their technical implementation, and most importantly — their target audience. In this article, we’ll analyze the similarities and differences between Cardano vs Ethereum and reveal which coin is a better investment opportunity. Let’s get started!
What is Cardano?
Cardano is a smart contract-enabled blockchain platform that aims to be the first fully decentralized, peer-reviewed blockchain. Cardano is written in Haskell, a programming language that uses a high level of abstraction and is therefore considered less prone to errors. Furthermore, Cardano’s decentralized network is built to be factually correct by design, making it less prone to errors and security breaches. Cardano is built as a layered blockchain architecture that divides the network into two layers. The first layer is the settlement layer, which is analogous to the Ethereum blockchain. The second layer is the computation layer, which is analogous to sidechains and the concept of plasma. Cardano’s two-layer architecture allows for separation of duties for each layer, increasing efficiency and reducing the risk of errors in code.
Overview of Cardano
Cardano is a hybrid blockchain platform that aims to combine the best features of both proof-of-work and proof-of-stake models. – Cardano is ADA’s native coin, which is used as a transaction fee or for smart contracts. – Cardano’s team is led by Charles Hoskinson, one of Ethereum’s co-founders.
What is Ethereum?
Ethereum is a decentralized, programmable blockchain designed primarily as a platform for dApps. Ethereum has its own native cryptocurrency, called Ether, which can be used to create dApps and smart contracts. – Ethereum first came into existence in 2015 and still has a few years before it’s expected to be fully developed and functional. – Ether’s price increased more than 100x in 2017, making it one of the best performing digital currencies that year. – Ethereum is written in Solidity and runs on a proof-of-work consensus algorithm.
Ethereum’s Roadmap to Becoming a Fully-Fledged Dapp Platform
Scalability: Ethereum can currently handle about 15 transactions per second, which is an issue when you’re trying to scale a blockchain to process the world’s entire digital economy. To combat this, the Ethereum Foundation is working on implementing sharding and a hybrid consensus model to increase the network’s capacity. – Usability: Since Ethereum is written in Solidity, developers who don’t have a thorough understanding of the language may find it difficult to develop dApps. To make Ethereum as accessible as possible, the Ethereum Foundation is working on creating a new language called Flow, which is easier to learn and write. – Security: An important part of any blockchain platform is security. Ethereum works with a proof-of-work consensus algorithm, which has been proven to be secure. However, the Ethereum Foundation is confident that they can improve security even more by switching to a proof-of-stake consensus algorithm.
Which Blockchain is Better?
As you’ve learned, both Ethereum and Cardano are very promising blockchain projects. But if we compare the two, Cardano has more potential to succeed as a dApp platform. That’s because of a few reasons: – Cardano’s team is comprised of peer-reviewed academics, who are very detail oriented and take pride in their work. – Ethereum is a much younger project, and therefore, the team is still working out some Significant kinks in their platform. – Cardano’s layered architecture is more advanced than Ethereum’s single-layered architecture. This allows for greater scalability and ease of use.
Final Words: Should You Invest in Cardano or Ethereum?
All things considered, Cardano is a more promising blockchain project. It’s backed by a team of seasoned academics, which is a rare quality in the blockchain industry. – Although the Ethereum Foundation is still working out some issues, investors who are looking for an established blockchain platform should be confident in their investment. – Both coins have the potential to succeed in the dApp marketplace, but Cardano has a more advanced architecture and a more experienced team.