Castore  DeRose

Castore DeRose

1659575635

Comparing Ethereum vs. Cardano | Comparing ADA vs. ETH

In this article, you'll learn What is Ethereum, What is Cardano. Comparing Ethereum vs. Cardano. Which is better?

1. What is Ethereum (ETH)?

Ethereum is a blockchain-based computing platform that enables developers to build and deploy decentralized applications—meaning not run by a centralized authority. You can create a decentralized application for which the participants of that particular application are the decision-making authority.

Ethereum is a smart contract platform that can be used for the development of dApps. Ethereum was the first platform to launch smart contracts — programmatic agreements that can function like legal contracts and can be executed automatically once specific conditions have been met. The Ethereum white paper was published in 2013 and the project first launched in 2015. In 2016, ETH became the second token to ever be listed on Coinbase.

Ethereum Features

  • Ether: This is Ethereum’s cryptocurrency.
  • Smart contracts: Ethereum allows the development and deployment of these types of contracts.
  • Ethereum Virtual Machine: Ethereum provides the underlying technology—the architecture and the software—that understands smart contracts and allows you to interact with it.
  • Decentralized applications (Dapps): A decentralized application is called a Dapp (also spelled DAPP, App, or DApp) for short. Ethereum allows you to create consolidated applications, called decentralized applications.
  • Decentralized autonomous organizations (DAOs): Ethereum allows you to create these for democratic decision-making.

These are Ethereum’s essential features. 

How Does Ethereum Work?

Ethereum possesses the same characteristics of other blockchains, such as being an immutable public ledger of transactions, being censorship-resistant due to a decentralized consensus mechanism, and providing a secure network through proof-of-work hashing.

On Ethereum, users can send financial transactions by using the network’s native token, Ether (ETH). They can also participate in any number of dApps built on the network, including decentralized finance (DeFi) platforms, non-fungible token (NFT) marketplaces, and blockchain-based games.

Ethereum was the first network to allow for the use of smart contracts, resulting in the potential for developing dApps. Programmers can code specific conditions into smart contracts, giving them a variety of functionality. For example, a contract for a decentralized marketplace might be programmed to execute trades automatically when a buyer and seller both want to trade at a certain price.

Performing the functions of a smart contract requires a small fee known as Gas. Ethereum gas is measured in gwei, the smallest unit of ETH. Even though the fee for a single smart contract function can be very small, performing complex actions often involves numerous functions within multiple smart contracts, and the fees a user ends up paying can add up quickly.

Why is Ethereum popular?

Decentralised finance, or DeFi, is one of the most popular developments that came from Ethereum. DeFi is an umbrella term that covers decentralised apps and projects related to finance — lending in particular.

DeFi applications negate the need for financial intermediaries like banks or brokers. Users can borrow and lend money through smart contracts.

Smart contracts are programs that automatically execute when the terms of the contract are met. They automate verification processes through code. For example, releasing money into someone’s bank account on the same day every year — like their birthday.

Smart contracts replace human intermediaries in the same way that vending machines replace a human selling food and drinks.

Ethereum also gave rise to non-fungible tokens (NFTs). Every NFT has a unique signature and can’t be duplicated, making each token one of a kind. The most popular NFTs are digital artworks, but investors speculate they could one day be used for proofs of identity or property deeds.

Considerations that weigh in favor of Ethereum are:

  • Longevity – Ethereum is the third-largest cryptocurrency worldwide. It also offers smart contracts and other decentralized applications on its network. This makes it a very appealing asset for clever investors.
  • Ethereum 2.0 – The Ethereum 2.0 update will address some of the concerns with its PoW protocol. Long-term, this should increase Ethereum’s value.

2. What is Cardano (ADA)?

Cardano (also known as ADA) was launched in 2017 by a team led by Hoskinson. The project leaders seek to differentiate Cardano through a degree of academic rigor applied to its code. In addition, Cardano’s developers say it is built on peer-reviewed research that it hopes will give people confidence that its code is stable and solid.

To be the most environmentally sustainable blockchain platform is Cardano’s goal. It uses a unique PoS consensus mechanism called Ouroboros. With an improvement called Hydra, Ouroboros will enable near-instant finality. Implementing Ouroboros Hydra will boost scalability and will allow multiple side chains. In theory, it could increase throughput to 1 million TPS.

Cardano is the first to be founded on a peer-reviewed research PoS blockchain platform. Also, it was developed through evidence-based methods. The platform provides unparalleled security and sustainability to decentralized applications, systems, and societies. 

So users can do cross-network transactions through sidechains. Sidechains are different Blockchains connected to the main blockchain. Creating a link between blockchain networks allows digital tokens to be transferred between them.

There are two layers to the Cardano blockchain: the Cardano Settlement Layer (CSL) and the Cardano Computing Layer (CCL). The CSL contains the ledger of accounts and balances. The CCL layer is where all the computations for apps running on the blockchain are executed via the operations of smart contracts. Splitting the blockchain into two layers helps the Cardano network process as many as a million transactions a second.

The platform also introduced smart contract support in September 2021. The ecosystem is still in development, but many projects, including dApps and DeFi services, are in development.

The fact that Cardano cannot be mined makes it an 'environmentally friendly' cryptocurrency because it does not involve the energy-intensive aspects of mining. According to this model, all Cardano holders can vote on its direction. As well it makes Cardano transactions faster than Ethereum.

The Cardano platform was implemented into real-world projects such as tracking fresh agricultural produce, identifying counterfeit goods, and tamper-proofing educational credentials.

Main Differences:

  • The first blockchain network was developed via evidence-based methods and founded on the pillars of peer-reviewed research;
  • Uses a novel proof-of-stake consensus mechanism Ouroboros;
  • Smart contracts platform powered by the ADA coin;
  • Environmentally friendly cryptocurrency.

Cardano enables several different features on its platform:

  • Currency: With a cryptocurrency wallet, you can send and receive Cardano or transfer it in exchange for goods and services.
  • Smart contracts: Cardano enables smart contracts, which are contracts that automatically self-execute when the contract’s conditions are fulfilled.
  • Decentralized finance: Cardano enables people to skip the middleman, such as banks and other financial institutions, to transact directly and on a permission-less basis with other individuals or entities.
  • Digital apps: As part of decentralized finance, Cardano can enable lending, trading, asset management, insurance and other typical financial services.

How Does Cardano Work?

Like Ethereum, with Cardano developers can program smart contracts and create decentralized applications.

But whereas Ethereum tackles problems with its development as they arise, Cardano tries to plan for contingencies beforehand. It does this by performing scientific studies about proposed changes to the Cardano network.

On Cardano, users can also send financial transactions with the network’s native token, ADA.

Why is Cardano popular?

Cardano was designed to use PoS from its launch, and the mechanism is verifiably secure with rigorous security guarantees. Cardano was the first blockchain protocol based on peer-reviewed research.

Cardano’s PoS mechanism makes the network far more environmentally friendly than Ethereum and most other cryptocurrencies. This has already attracted many green investors.

The network is far more scalable than Ethereum and therefore could overtake it as the smart contract platform of choice.

The Cardano network can, in theory, run as many transactions as you could ever need without slowing down due to a bottleneck.

The network currently processes 266 transactions per second, but developers estimate it will one day process 1,000,000 transactions per second. Comparatively, Visa processes roughly 1,700 transactions per second.

Considerations that weigh in favor of Cardano are:

  • Ouroboros consensus protocol. The Cardano platform runs on the Ouroboros consensus protocol. Ouroboros, created by Cardano in its foundation phase, is the first PoS protocol that was proved to be secure. When choosing to invest in Cardano, the success of the Ouroboros protocol is a huge plus.
  • Scholarly academic research – Cardano’s development has been unique in that it has been informed by scholarly academic research. Each of Cardano’s development phases is supported by a research-based framework, incorporating peer-reviewed insights with evidence-based methods. This creates a strong foundation from which to make progress toward the future of both the blockchain network and the Ada token.

3. Comparing Ethereum vs. Cardano

Similarities Between Cardano and Ethereum

There are many similarities between Cardano and Ethereum. Both networks are trying to achieve the same thing — they just want to go about it differently. Some commonalities between the two cryptocurrencies include:

•   Both platforms provide smart contract functionality

•   Both can be used to develop dApps

•   Both can be used for sending financial transactions via the network’s native token

•   Once Ethereum upgrades to ETH 2.0, both will be proof-of-stake networks

Smart Contracts

With smart contracts, the rules are enforced by code, and the terms of the agreement can be executed automatically when the agreed-upon conditions have been met. This has opened up a new world of possibilities in terms of new applications that can be decentralized.

Smart contracts solve a number of problems that have plagued traditional contracts, specifically the potential for fraud, censorship, or third-party interference. These programmatic contracts are what made Ethereum unique and led it to becoming the second-largest cryptocurrency.

Over time, a number of competing networks that hope to improve upon Ethereum’s design have sprung up. Cardano is currently the largest Ethereum competitor by market cap.

Key Differences

Most of the differences between Cardano vs. Ethereum have to do with their approach to building a blockchain network and the philosophies of their creators.

Ethereum, for example:

•   Was created by Vitalik Buterin in 2015 in an attempt to do things Bitcoin couldn’t, specifically smart contracts

•   Takes more of a “build first, fix problems later” approach

Cardano, on the other hand:

•   Was created by Charles Hoskinson in 2017 as an improvement over Ethereum

•   Tries to use academic research to bolster its development beforehand

Another difference between the two networks is the number of dApps currently running on either platform. The vast majority of blockchain-based video games, NFT marketplaces, and DeFi protocols run on Ethereum or a layer-2 Ethereum network like Polygon.

There are at least 100 DeFi services running on Cardano, in addition to some other unique, disruptive projects.

Cardano’s naitve token is ADA vs. ETH for Ethereum. Both can be used to send financial transactions, although the fees and confirmation times may vary, with ADA usually having lower fees.

  • Proof of Work vs Proof of Stake

An important aspect of any blockchain network is its consensus mechanism. This refers to how all the nodes on a given network agree as to which transactions are valid and which are not (how they achieve consensus). Without consensus, there’s no blockchain, as an accurate distributed ledger couldn’t be maintained.

There are different potential ways of achieving consensus. Proof-of-work (PoW) and proof-of-stake (PoS) are currently the two most popular methods.

Ethereum currently utilizes PoW while Cardano makes use of PoS. Ethereum plans to transition to proof-of-stake consensus with the upgrade of ETH 2.0, which has been delayed many times.

PoW involves solving complex math problems to secure the network and validate transactions, which requires a lot of energy. This is the original consensus mechanism, first used on the Bitcoin network. While it has been criticized for being inefficient, it has also proven to be very secure, provided the network has a high enough hashrate.

PoS relies on the locking up or “staking” of network tokens to accomplish the same, which takes less computing power. Rather than relying on excessive amounts of computing power, this consensus mechanism relies on the total value of a network’s native token for security.

  • Monetary Policy

Another important difference between Cardano vs. Ethereum is each network’s monetary policy governing their respective tokens.

The distribution of both ADA tokens on the Cardano network and ETH on the Ethereum network are similar: the tokens get mined with every block and distributed in return for verifying transactions (in the case of ADA) and distributed to minders (in the case of ADA).

But when it comes to the supply limit placed on the issuance of new tokens, the two cryptos diverge significantly.

There is no limit placed on how many ETH can be minted. The supply of ETH tokens is programmed to increase at a rate of 4.5% annually. The supply of ADA tokens, on the other hand, is limited. According to Cardano’s code, there will only ever be 45 million ADA. As of early February 2022, there were 33.5 billion ADA in circulation.

  • Operational Philosophies

Ethereum takes more of a “build first, tackle problems later as they arise” approach. A good example of this would be the proposed upgrade to ETH 2.0 and transition to proof-of-stake. The need for this upgrade stems from Ethereum’s lack of ability to scale. Cardano proponents might argue that this should have been considered earlier and been dealt with in a scientific manner.

Cardano prefers to conduct rigorous scientific research before implementing changes to their protocol. The idea is to make sure all contingencies are planned for ahead of time so there will be fewer problems down the road.

  • Transaction Details

Cardano can currently process about 250 transactions per second (TPS) as opposed to 100 TPS for Ethereum. Cardano’s proposed Ouroborus Hydra upgrade could see the network’s possible TPS soar to as high as 2.5 million.

At the same time, Ethereum’s ETH 2.0 upgrade aims for an increase to 100,000 TPS. It could be said that Cardano is more ambitious, or that Ethereum is more realistic. A lot of these matters come down to the opinions of developers and users.

  • Energy Consumption

The proof-of-work consensus, which Ethereum uses, is a more energy intensive process than proof-of-stake, which powers the Cardano network. So, for now, Ethereum uses more energy than Cardano.

Ethereum uses about 14.81 terawatts to validate its transactions. In contrast, Cardano requires about 0.00052 terawatts.

If and when Ethereum does upgrade to ETH 2.0 and switch to the proof-of-stake consensus mechanism, then its energy usage will decline. But even then, it will use more energy than Cardano simply due to being a larger network that processes more transactions.

Summary of Differences Between Ethereum and Cardano:

FeatureEthereumCardano
Transactions per second13, but expected to reach 100,000 with Ethereum 2.0266, could rise into the millions once the initial development finishes in 2025
 Created to do things Bitcoin couldn’t, specifically smart contractsCreated as an improvement over Ethereum
Block times10-20 seconds20 seconds
Consensus MechanismProof-of-Work, set to transition to Proof-of-StakeProof-of-Stake
CoinNative token is ETHNative token is ADA
Smart ContractsEthereum supports smart contracts and is the market leader with 2,800 Dapps on its network using smart contractsIntroduced September 15 and compatibole with Ethereum's Solidity programming language
StakingYes, but quite complicated easy to set upEasy and accessible through many exchanges
Pros- First mover with smart contracts and NFTs- First mover with Proof-of-Stake
- Market leader in smart contracts, DeFi, NFTs- In theory infinitely scalable
- Huge developer community- Effortless staking
Cons- Currently high gas fees and slow transfer times during busy periods- Development roadmap won't be finished until 2025
- Currently losing developers because of performance issues- Lagging behind Ethereum in smart contract usage and DeFi applications
- Many applications 

How to buy Ethereum and Cardano

  1. Choose a cryptocurrency exchange. If you’re new to crypto, we offer an overview of some of the popular exchanges below.
  2. Choose a storage method — either a hot or cold wallet. Keeping your crypto on an exchange isn’t recommended long term.
  3. Place an order, then wait for your currency to land in your exchange wallet.
  4. Transfer your funds to your wallet away from the exchange. If you’re interested in staking, you’ll need a wallet that supports staking. The Daedalus wallet provides an easy staking experience for Cardano.

Top exchanges for trading: BinancePoloniexBitfinexHuobiMXCProBITGate.io

Conclusion

Cardano and Ethereum are both platforms with smart contract functionality that can be used to develop dApps. But the two have significant differences as well, from their market caps to the consensus they use (proof-of-stake vs. proof-of-work, respectively).

Read more: How to Earn with Crypto Exchange Affiliate Programs

I hope this article will help you. Don't forget to leave a like, comment and sharing it with others. Thank you!

#blockchain #eth #ethereum #bitcoin #cryptocurrency #ada #cardano   

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Comparing Ethereum vs. Cardano | Comparing ADA vs. ETH
Castore  DeRose

Castore DeRose

1659575635

Comparing Ethereum vs. Cardano | Comparing ADA vs. ETH

In this article, you'll learn What is Ethereum, What is Cardano. Comparing Ethereum vs. Cardano. Which is better?

1. What is Ethereum (ETH)?

Ethereum is a blockchain-based computing platform that enables developers to build and deploy decentralized applications—meaning not run by a centralized authority. You can create a decentralized application for which the participants of that particular application are the decision-making authority.

Ethereum is a smart contract platform that can be used for the development of dApps. Ethereum was the first platform to launch smart contracts — programmatic agreements that can function like legal contracts and can be executed automatically once specific conditions have been met. The Ethereum white paper was published in 2013 and the project first launched in 2015. In 2016, ETH became the second token to ever be listed on Coinbase.

Ethereum Features

  • Ether: This is Ethereum’s cryptocurrency.
  • Smart contracts: Ethereum allows the development and deployment of these types of contracts.
  • Ethereum Virtual Machine: Ethereum provides the underlying technology—the architecture and the software—that understands smart contracts and allows you to interact with it.
  • Decentralized applications (Dapps): A decentralized application is called a Dapp (also spelled DAPP, App, or DApp) for short. Ethereum allows you to create consolidated applications, called decentralized applications.
  • Decentralized autonomous organizations (DAOs): Ethereum allows you to create these for democratic decision-making.

These are Ethereum’s essential features. 

How Does Ethereum Work?

Ethereum possesses the same characteristics of other blockchains, such as being an immutable public ledger of transactions, being censorship-resistant due to a decentralized consensus mechanism, and providing a secure network through proof-of-work hashing.

On Ethereum, users can send financial transactions by using the network’s native token, Ether (ETH). They can also participate in any number of dApps built on the network, including decentralized finance (DeFi) platforms, non-fungible token (NFT) marketplaces, and blockchain-based games.

Ethereum was the first network to allow for the use of smart contracts, resulting in the potential for developing dApps. Programmers can code specific conditions into smart contracts, giving them a variety of functionality. For example, a contract for a decentralized marketplace might be programmed to execute trades automatically when a buyer and seller both want to trade at a certain price.

Performing the functions of a smart contract requires a small fee known as Gas. Ethereum gas is measured in gwei, the smallest unit of ETH. Even though the fee for a single smart contract function can be very small, performing complex actions often involves numerous functions within multiple smart contracts, and the fees a user ends up paying can add up quickly.

Why is Ethereum popular?

Decentralised finance, or DeFi, is one of the most popular developments that came from Ethereum. DeFi is an umbrella term that covers decentralised apps and projects related to finance — lending in particular.

DeFi applications negate the need for financial intermediaries like banks or brokers. Users can borrow and lend money through smart contracts.

Smart contracts are programs that automatically execute when the terms of the contract are met. They automate verification processes through code. For example, releasing money into someone’s bank account on the same day every year — like their birthday.

Smart contracts replace human intermediaries in the same way that vending machines replace a human selling food and drinks.

Ethereum also gave rise to non-fungible tokens (NFTs). Every NFT has a unique signature and can’t be duplicated, making each token one of a kind. The most popular NFTs are digital artworks, but investors speculate they could one day be used for proofs of identity or property deeds.

Considerations that weigh in favor of Ethereum are:

  • Longevity – Ethereum is the third-largest cryptocurrency worldwide. It also offers smart contracts and other decentralized applications on its network. This makes it a very appealing asset for clever investors.
  • Ethereum 2.0 – The Ethereum 2.0 update will address some of the concerns with its PoW protocol. Long-term, this should increase Ethereum’s value.

2. What is Cardano (ADA)?

Cardano (also known as ADA) was launched in 2017 by a team led by Hoskinson. The project leaders seek to differentiate Cardano through a degree of academic rigor applied to its code. In addition, Cardano’s developers say it is built on peer-reviewed research that it hopes will give people confidence that its code is stable and solid.

To be the most environmentally sustainable blockchain platform is Cardano’s goal. It uses a unique PoS consensus mechanism called Ouroboros. With an improvement called Hydra, Ouroboros will enable near-instant finality. Implementing Ouroboros Hydra will boost scalability and will allow multiple side chains. In theory, it could increase throughput to 1 million TPS.

Cardano is the first to be founded on a peer-reviewed research PoS blockchain platform. Also, it was developed through evidence-based methods. The platform provides unparalleled security and sustainability to decentralized applications, systems, and societies. 

So users can do cross-network transactions through sidechains. Sidechains are different Blockchains connected to the main blockchain. Creating a link between blockchain networks allows digital tokens to be transferred between them.

There are two layers to the Cardano blockchain: the Cardano Settlement Layer (CSL) and the Cardano Computing Layer (CCL). The CSL contains the ledger of accounts and balances. The CCL layer is where all the computations for apps running on the blockchain are executed via the operations of smart contracts. Splitting the blockchain into two layers helps the Cardano network process as many as a million transactions a second.

The platform also introduced smart contract support in September 2021. The ecosystem is still in development, but many projects, including dApps and DeFi services, are in development.

The fact that Cardano cannot be mined makes it an 'environmentally friendly' cryptocurrency because it does not involve the energy-intensive aspects of mining. According to this model, all Cardano holders can vote on its direction. As well it makes Cardano transactions faster than Ethereum.

The Cardano platform was implemented into real-world projects such as tracking fresh agricultural produce, identifying counterfeit goods, and tamper-proofing educational credentials.

Main Differences:

  • The first blockchain network was developed via evidence-based methods and founded on the pillars of peer-reviewed research;
  • Uses a novel proof-of-stake consensus mechanism Ouroboros;
  • Smart contracts platform powered by the ADA coin;
  • Environmentally friendly cryptocurrency.

Cardano enables several different features on its platform:

  • Currency: With a cryptocurrency wallet, you can send and receive Cardano or transfer it in exchange for goods and services.
  • Smart contracts: Cardano enables smart contracts, which are contracts that automatically self-execute when the contract’s conditions are fulfilled.
  • Decentralized finance: Cardano enables people to skip the middleman, such as banks and other financial institutions, to transact directly and on a permission-less basis with other individuals or entities.
  • Digital apps: As part of decentralized finance, Cardano can enable lending, trading, asset management, insurance and other typical financial services.

How Does Cardano Work?

Like Ethereum, with Cardano developers can program smart contracts and create decentralized applications.

But whereas Ethereum tackles problems with its development as they arise, Cardano tries to plan for contingencies beforehand. It does this by performing scientific studies about proposed changes to the Cardano network.

On Cardano, users can also send financial transactions with the network’s native token, ADA.

Why is Cardano popular?

Cardano was designed to use PoS from its launch, and the mechanism is verifiably secure with rigorous security guarantees. Cardano was the first blockchain protocol based on peer-reviewed research.

Cardano’s PoS mechanism makes the network far more environmentally friendly than Ethereum and most other cryptocurrencies. This has already attracted many green investors.

The network is far more scalable than Ethereum and therefore could overtake it as the smart contract platform of choice.

The Cardano network can, in theory, run as many transactions as you could ever need without slowing down due to a bottleneck.

The network currently processes 266 transactions per second, but developers estimate it will one day process 1,000,000 transactions per second. Comparatively, Visa processes roughly 1,700 transactions per second.

Considerations that weigh in favor of Cardano are:

  • Ouroboros consensus protocol. The Cardano platform runs on the Ouroboros consensus protocol. Ouroboros, created by Cardano in its foundation phase, is the first PoS protocol that was proved to be secure. When choosing to invest in Cardano, the success of the Ouroboros protocol is a huge plus.
  • Scholarly academic research – Cardano’s development has been unique in that it has been informed by scholarly academic research. Each of Cardano’s development phases is supported by a research-based framework, incorporating peer-reviewed insights with evidence-based methods. This creates a strong foundation from which to make progress toward the future of both the blockchain network and the Ada token.

3. Comparing Ethereum vs. Cardano

Similarities Between Cardano and Ethereum

There are many similarities between Cardano and Ethereum. Both networks are trying to achieve the same thing — they just want to go about it differently. Some commonalities between the two cryptocurrencies include:

•   Both platforms provide smart contract functionality

•   Both can be used to develop dApps

•   Both can be used for sending financial transactions via the network’s native token

•   Once Ethereum upgrades to ETH 2.0, both will be proof-of-stake networks

Smart Contracts

With smart contracts, the rules are enforced by code, and the terms of the agreement can be executed automatically when the agreed-upon conditions have been met. This has opened up a new world of possibilities in terms of new applications that can be decentralized.

Smart contracts solve a number of problems that have plagued traditional contracts, specifically the potential for fraud, censorship, or third-party interference. These programmatic contracts are what made Ethereum unique and led it to becoming the second-largest cryptocurrency.

Over time, a number of competing networks that hope to improve upon Ethereum’s design have sprung up. Cardano is currently the largest Ethereum competitor by market cap.

Key Differences

Most of the differences between Cardano vs. Ethereum have to do with their approach to building a blockchain network and the philosophies of their creators.

Ethereum, for example:

•   Was created by Vitalik Buterin in 2015 in an attempt to do things Bitcoin couldn’t, specifically smart contracts

•   Takes more of a “build first, fix problems later” approach

Cardano, on the other hand:

•   Was created by Charles Hoskinson in 2017 as an improvement over Ethereum

•   Tries to use academic research to bolster its development beforehand

Another difference between the two networks is the number of dApps currently running on either platform. The vast majority of blockchain-based video games, NFT marketplaces, and DeFi protocols run on Ethereum or a layer-2 Ethereum network like Polygon.

There are at least 100 DeFi services running on Cardano, in addition to some other unique, disruptive projects.

Cardano’s naitve token is ADA vs. ETH for Ethereum. Both can be used to send financial transactions, although the fees and confirmation times may vary, with ADA usually having lower fees.

  • Proof of Work vs Proof of Stake

An important aspect of any blockchain network is its consensus mechanism. This refers to how all the nodes on a given network agree as to which transactions are valid and which are not (how they achieve consensus). Without consensus, there’s no blockchain, as an accurate distributed ledger couldn’t be maintained.

There are different potential ways of achieving consensus. Proof-of-work (PoW) and proof-of-stake (PoS) are currently the two most popular methods.

Ethereum currently utilizes PoW while Cardano makes use of PoS. Ethereum plans to transition to proof-of-stake consensus with the upgrade of ETH 2.0, which has been delayed many times.

PoW involves solving complex math problems to secure the network and validate transactions, which requires a lot of energy. This is the original consensus mechanism, first used on the Bitcoin network. While it has been criticized for being inefficient, it has also proven to be very secure, provided the network has a high enough hashrate.

PoS relies on the locking up or “staking” of network tokens to accomplish the same, which takes less computing power. Rather than relying on excessive amounts of computing power, this consensus mechanism relies on the total value of a network’s native token for security.

  • Monetary Policy

Another important difference between Cardano vs. Ethereum is each network’s monetary policy governing their respective tokens.

The distribution of both ADA tokens on the Cardano network and ETH on the Ethereum network are similar: the tokens get mined with every block and distributed in return for verifying transactions (in the case of ADA) and distributed to minders (in the case of ADA).

But when it comes to the supply limit placed on the issuance of new tokens, the two cryptos diverge significantly.

There is no limit placed on how many ETH can be minted. The supply of ETH tokens is programmed to increase at a rate of 4.5% annually. The supply of ADA tokens, on the other hand, is limited. According to Cardano’s code, there will only ever be 45 million ADA. As of early February 2022, there were 33.5 billion ADA in circulation.

  • Operational Philosophies

Ethereum takes more of a “build first, tackle problems later as they arise” approach. A good example of this would be the proposed upgrade to ETH 2.0 and transition to proof-of-stake. The need for this upgrade stems from Ethereum’s lack of ability to scale. Cardano proponents might argue that this should have been considered earlier and been dealt with in a scientific manner.

Cardano prefers to conduct rigorous scientific research before implementing changes to their protocol. The idea is to make sure all contingencies are planned for ahead of time so there will be fewer problems down the road.

  • Transaction Details

Cardano can currently process about 250 transactions per second (TPS) as opposed to 100 TPS for Ethereum. Cardano’s proposed Ouroborus Hydra upgrade could see the network’s possible TPS soar to as high as 2.5 million.

At the same time, Ethereum’s ETH 2.0 upgrade aims for an increase to 100,000 TPS. It could be said that Cardano is more ambitious, or that Ethereum is more realistic. A lot of these matters come down to the opinions of developers and users.

  • Energy Consumption

The proof-of-work consensus, which Ethereum uses, is a more energy intensive process than proof-of-stake, which powers the Cardano network. So, for now, Ethereum uses more energy than Cardano.

Ethereum uses about 14.81 terawatts to validate its transactions. In contrast, Cardano requires about 0.00052 terawatts.

If and when Ethereum does upgrade to ETH 2.0 and switch to the proof-of-stake consensus mechanism, then its energy usage will decline. But even then, it will use more energy than Cardano simply due to being a larger network that processes more transactions.

Summary of Differences Between Ethereum and Cardano:

FeatureEthereumCardano
Transactions per second13, but expected to reach 100,000 with Ethereum 2.0266, could rise into the millions once the initial development finishes in 2025
 Created to do things Bitcoin couldn’t, specifically smart contractsCreated as an improvement over Ethereum
Block times10-20 seconds20 seconds
Consensus MechanismProof-of-Work, set to transition to Proof-of-StakeProof-of-Stake
CoinNative token is ETHNative token is ADA
Smart ContractsEthereum supports smart contracts and is the market leader with 2,800 Dapps on its network using smart contractsIntroduced September 15 and compatibole with Ethereum's Solidity programming language
StakingYes, but quite complicated easy to set upEasy and accessible through many exchanges
Pros- First mover with smart contracts and NFTs- First mover with Proof-of-Stake
- Market leader in smart contracts, DeFi, NFTs- In theory infinitely scalable
- Huge developer community- Effortless staking
Cons- Currently high gas fees and slow transfer times during busy periods- Development roadmap won't be finished until 2025
- Currently losing developers because of performance issues- Lagging behind Ethereum in smart contract usage and DeFi applications
- Many applications 

How to buy Ethereum and Cardano

  1. Choose a cryptocurrency exchange. If you’re new to crypto, we offer an overview of some of the popular exchanges below.
  2. Choose a storage method — either a hot or cold wallet. Keeping your crypto on an exchange isn’t recommended long term.
  3. Place an order, then wait for your currency to land in your exchange wallet.
  4. Transfer your funds to your wallet away from the exchange. If you’re interested in staking, you’ll need a wallet that supports staking. The Daedalus wallet provides an easy staking experience for Cardano.

Top exchanges for trading: BinancePoloniexBitfinexHuobiMXCProBITGate.io

Conclusion

Cardano and Ethereum are both platforms with smart contract functionality that can be used to develop dApps. But the two have significant differences as well, from their market caps to the consensus they use (proof-of-stake vs. proof-of-work, respectively).

Read more: How to Earn with Crypto Exchange Affiliate Programs

I hope this article will help you. Don't forget to leave a like, comment and sharing it with others. Thank you!

#blockchain #eth #ethereum #bitcoin #cryptocurrency #ada #cardano   

$288k Bitcoin Still in Play (Best Time For Ethereum, Cardano & DOT)

In today’s video we will discuss the Bitcoin Price still hitting $288,000 before the end of 2021. We’ll look at the current crypto prices and the market as a whole and discuss the latest Cardano, Ethereum and other top altcoin news.

0:00 Intro
4:45 Market Watch
12:20 Bitcoin Chart
20:35 Ethereum Chart
28:14 $280K BTC
36:56 ETH On Sale
42:15 DOT & ADA Next?
48:24 1st ADA Smart Contract
55:17 Tanzania Going BTC
1:01:04 Millenial Millionaires
1:07:20 July Fireworks
📺 The video in this post was made by BitBoy Crypto
The origin of the article: https://www.youtube.com/watch?v=VNE-a-Oc25c
🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
Cryptocurrency trading is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money
🔥 If you’re a beginner. I believe the article below will be useful to you ☞ What You Should Know Before Investing in Cryptocurrency - For Beginner
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#bitcoin #blockchain #ethereum #cardano #best time for ethereum, cardano & dot #$288k bitcoin still in play (best time for ethereum, cardano & dot)

Cardano (ADA) vs Ethereum (ETH) | Is Cardano a Threat to Ethereum? Token Metrics AMA

In this video we will explore Cardano (ADA) and Ethereum (ETH) - Is Cardano a threat to Ethereum?

subscribe: https://www.youtube.com/channel/UCH9MOLQ_KUpZ_cw8uLGUisA

#ada #ethereum #cryptocurrency #blockchain

Angelina roda

Angelina roda

1624922820

How to Stake Cardano $ADA | Quick & Easy!

In this video, we walk-through how to stake Cardano ($ADA) to start earning free rewards in just a few, simple steps. Staking the cryptocurrency Cardano provides passive income just for holding ADA in your wallet! In this tutorial, we use my favorite software wallet: Exodus!

Staking is a great way to maximize your holdings in staking coins and fiat that would otherwise be sitting in your wallet. Once you have staked your assets you can earn staking rewards on top of your holdings and grow them further by compounding those future rewards.

What are staking rewards?

You can earn rewards when you stake cryptocurrencies and fiat for a period of time as an incentive to acquire and hold onto staking assets. To earn staking rewards, simply decide which cryptocurrency you wish to stake and then you can start earning rewards from the Proof of Stake process. In the case of the cryptocurrency Cardano, you can earn up to about 5% in rewards, just for holding the cryptocurrency, which is pretty awesome.

What is Proof of Stake?

Popular coins like Bitcoin are proof of work, meaning they’re generated by using machines competing to solve complex equations to “mine” coins and digital assets. Proof of Stake works differently by choosing from a pool of people holding the Proof of Stake coin. Staking is the process of actively participating in transaction validation, similar to Bitcoin mining, but on a proof of stake blockchain. Anyone with the minimum required balance of a specific cryptocurrency can validate transaction and earn staking rewards – or free cryptocurrency.

For this tutorial, we will be using the Exodus Crypto Wallet. The Exodus wallet is also available on your mobile phone as well or through the Trezor hardware wallet. I really like the Exodus Crypto Wallet because it has a very intuitive user experience, and it looks pretty awesome.

📺 The video in this post was made by Will Walker
The origin of the article: https://www.youtube.com/watch?v=iKDvqpDrfvI&t=12s
🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
Cryptocurrency trading is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money
🔥 If you’re a beginner. I believe the article below will be useful to you ☞ What You Should Know Before Investing in Cryptocurrency - For Beginner
⭐ ⭐ ⭐The project is of interest to the community. Join to Get free ‘GEEK coin’ (GEEKCASH coin)!
☞ **-----CLICK HERE-----**⭐ ⭐ ⭐
Thanks for visiting and watching! Please don’t forget to leave a like, comment and share!

#bitcoin #blockchain #$ada #cardano #stake cardano #how to stake cardano $ada

Koire phili

Koire phili

1624575600

CARDANO PRICE BREAKOUT! (Buckle Your ADA Seatbelts) ( HOT NEWS!!! )

Cardano price has broken all time high, and with this bullish ada breakout will likely come a lot of volatility, both to the upside and the downside. ADA price has hit a short term target and resistance is anticipated now. Where is support for a potential retrace? Where does ADA price go from here now that Cardano has seen a breakout?

📺 The video in this post was made by Crypto Capital Venture
The origin of the article: https://www.youtube.com/watch?v=Vx9LysPgHAg
🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
Cryptocurrency trading is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money
🔥 If you’re a beginner. I believe the article below will be useful to you ☞ What You Should Know Before Investing in Cryptocurrency - For Beginner
⭐ ⭐ ⭐The project is of interest to the community. Join to Get free ‘GEEK coin’ (GEEKCASH coin)!
☞ **-----CLICK HERE-----**⭐ ⭐ ⭐
Thanks for visiting and watching! Please don’t forget to leave a like, comment and share!

#bitcoin #blockchain #cardano #cardano price #ada #cardano price breakout! (buckle your ada seatbelts)