The blockchain world is one of the most productive financial revolutions of the day, with Bitcoin remaining the most valuable blockchain in the world. Other blockchain technologies like Ethereum and Cardano offer relevant services, including smart contract options.
In general, ETH and ADA are among the most popular cryptocurrencies, the value of which is continuously increasing. Current statistics from Coinmarketcap show that Ethereum’s market capitalization is around $ 400 billion while Cardano’s is around $ 50 billion. As a result, Ethereum is already a popular cryptocurrency platform, and Cardano is not far behind.
One thing that makes comparing Cardano and Ethereum necessary is the similarities between the services they provide. For example, the duo uses intelligent contract technology to provide the option for decentralized applications.
Since the introduction of Ethereum 2.0, both blockchain protocols (Cardano and Ethereum) have been using similar consensus mechanisms (proof of stake). The effects of the introduction of ETH 2.0 are not yet widespread in the cryptocurrency market.
The idea behind the introduction of Ethereum 2.0 was to end the problems of network congestion. Cardano has used the proof-of-stake method since its introduction and was thus ahead of the ETH. The POS consensus mechanism and smart contract options are the main similarities between the two platforms. What is the difference between the two blockchain platforms?
This guide will discuss the technological difference between Ethereum and the Cardano network. It’s important to consider the performance of any blockchain project, including features like speed, scalability, and cost.
Cardano and Ethereum: speed difference
The Ethereum platform can process 20 transactions per second, actually faster than the crypto giant Bitcoin. In addition, according to various analysts, this platform can complete the entire transaction process in a short period of 5 minutes.
In general, the speed of the transaction depends on the amount of gas you give off. For example, if you’re paying slightly lower gas fees, it could take days to complete your transaction.
Cardano, on the other hand, is able to process more than 1000 transactions per second, which turns out to be faster than Ethereum. There is an opening showing that the network could support 1 million TPS in the future. Constantly updating their network, this platform is working to provide the best of services.
However, the transactions in Cardano take an average of 5 to 10 minutes to complete. First and foremost, it takes about 20 seconds to complete a block. However, to ensure there is no reversibility, Cardano introduces a process that places around 15 to 30 blocks.
Ethereum vs. Cardano costs
According to various sources, the cost of Ethereum is becoming increasingly unmanageable. According to the latest statistics from Coindesk, the cost of Ethereum currently averages $ 12.95, an increase of over 6.35,000% over the cost of the previous year.
The formula for determining the total cost of ether transactions involves multiplying the amount of gas and the price per gas. The maximum transaction fee is the maximum gas limit through the gas price.
Unlike Ethereum, Cardano has very fair prices and the cost of transactions is pretty affordable. The costs associated with a transaction depend on the size of each transaction.
The formulas used to calculate the price are X + Y * size, where X and y are constant values of 0.155318 and 0.000043946. However, the average cost is generally cheaper than Ethereum.
Ethereum Vs. Cardano Scalability
Scalability is a big problem in the Ethereum network as the platform faces tons of difficulties. At the end of 2018, the Ethereum network hit more than 1 terabyte, and the size is growing rapidly.
Ethereum is a multitude of hundreds of small projects in ERC-20, ERC-721 and ERC-1155 for Defi and NFTs. Although platform developers want to strengthen the system using techniques such as sharding, scalability is still a major concern.
Almost every blockchain network is designed to surpass the scalability of a large network like Visa. However, most networks, including monsters like Bitcoin and Ethereum, are not currently scalable. For example, the platforms only process a few transactions per second.
However, Cardano is capable of super-fast transactions and hosts many transactions at the same time. Therefore, investors can carry out transactions with all values in Cardano and use the functions of the platform. Compared to Ethereum, Cardano offers more scalable transactions that are larger than many blockchain protocols in the cryptocurrency space.
Ethereum Vs. Cardano Security Protocols
Although the Ethereum network claims to be highly secure, there are several risks associated with Ethereum smart contracts. There are issues like re-entry attacks, security loopholes with gas restrictions, simple logic errors and a lot more.
In addition, cryptanalysts have found in previous research that ETH is likely to fall into brute force attacks that are now devouring blockchains. However, with the recently introduced ETH 2.0, it’s safe to say that the network is also working to rule out the likelihood of hacks.
Ethereum’s public blockchain is strong; can therefore not threaten to be banned in its entirety. The network itself is robust; Therefore, the issue of security is not a big problem.
In order to ensure the highest level of security for the platform, Cardano complies with the regulations that help protect the platforms. In general, the Cardano blockchain platform is decentralized, but regulatory compliance makes this platform very trustworthy.
This blockchain protocol uses POS systems and thus secures the possibility of 51% attacks. In 2019, a Bitrue stock market attack stole some of the Cardano currency and the Bitrue exchange shifted the blame to Cardano’s vulnerabilities. However, since the claims have not been proven, it is safe to say that Cardano is an extremely reliable network.
Cardano and Ethereum Blockchain architectures
The Ethereum network presented its programming language Solidity. The solidity language helped a lot in creating the Ethereum virtual machine. Ethereum is still a single tier network. Therefore, the scalability of the network is not very efficient.
In contrast, Cardano developers used a programming language called Haskell and Plutus. Cardano has a dual-layer system, CSL and CCL, which handle both services separately. This second layer helps improve scalability, speed, cost, and reliability.
As fixed assets
When considering the short-term investment option, however, the coin-operated ETH of Ethereum shines in this area. The token already shows the best prospects it has ever shown.
For example, one ETH was trading at around $ 3,481 at the time of writing and the numbers were rising. Experts say the coin will soon hit the $ 5,000 mark. Hence, this coin is a huge investment deal.
However, Cardanos ADA is lagging behind in terms of prices, with one ADA trading at $ 1.64. Although the currency is expected to continue growing soon, it won’t beat Ethereum. Investors can continue to use ADA currency as it is still among the best in the crypto market.
Cardano vs Ethereum: verdict
After a thorough look at Ethereum and Cardano’s technology, it’s pretty clear that Cardano is miles ahead of Ethereum’s. In addition, the Cardano development team is still working on developing even more solutions for the entire Cardano network. As a result, Cardano will soon be a more reliable smart contract option than Ethereum.
Cardano will continue to offer cheaper, safer, and more scalable services, and will likely thrive on Ethereum in the long run.
However, when you look at ETH and ADA prices, it’s clear that ETH is a better investment alternative. With experts already predicting more incredible things for ETH, this currency remains a better choice for investments.