Since the emergence of Bitcoin in 2008, the digital asset space has various innovative digital currencies such as Ethereum and Cardano. While Ethereum was launched in 2015, a 19-year-old Vitalik Buterin and other programmers (though the ETH white paper was published in 2013); Cardano came into existence in 2017. Until then, Ethereum has enjoyed its rivalry with Bitcoin. Bitcoin is known to be highly volatile. Although, it has enjoyed massive popularity since 2018. Due to its volatility, its popularity initiated a tremendous loss from investors. Meanwhile, the majority of market influencers like Elon Musk uphold their stand by investing massively. Lets find out the answer to is buying Cardano a threat to Ethereum here?
However, Ethereum rivaled the success of Bitcoin in the crypto world. With the vision to become a global, open-source platform for custom assets and new kinds of economic applications, Ethereum has gained a lot of attention in the last few years. Aside from this, it has passionately aimed at leveraging blockchain technology to decentralize products and services in a wide range of use cases beyond money. Hence, its threatening competition with Bitcoin. Nonetheless, there seems to be a new narrative as Ethereum is likely to be threatened by Cardano, another cryptocurrency.
A Brief History of Cardano (ADA)
Cardano was launched in September 2017. It is a decentralized open-source platform that uses blockchain technology. Technologists named Jeremy Wood and Charles Hoskinson (who interestingly is a co-founder of Ethereum) created Cardano. The Cardano network focuses on a smart contract that is useful for decentralized applications (DApps). The DAPPs have the advantage over current internet applications in that they are more privacy-friendly and reliable sources. Ethereum coin is otherwise known as ETH (though it was initially ETC), Cardano is known as ADA. It can send and receive values within the network and on the corresponding DApps.
Cardano may take over Ethereum because it adopts the Proof of Stake (PoS) mechanism, which is faster and cheaper. PoS is an alternative solution to the Proof of Work (PoW) mechanism that requires high energy consumption. Meanwhile, Ethereum operates with the PoW mechanism. Miners and partners are actively partaking in the Proof of Stake mining process because it is less costly.
Differences Between Ethereum (ETH) and Cardano (ADA)
One of the ways Cardano differs from Ethereum is its emphasis on a research-driven approach to design to and achieve academic rigor. Cardano’s founders believe it will propel the adoption of its technology.
Another difference between the duo is that Ethereum keeps developing its technology on its journey and is currently rolling out Ethereum 2.0 (Eth2). Wherein Cardano is much slower since each step taken by Cardano is usually thoroughly reviewed by experts.
Furthermore, Ethereum is at its peak as far as the smart contract race is concerned. Smart contracts are the bedrock behind non-fungible tokens (NFTs) and decentralized applications. Without smart contracts, blockchains can only record transactions but cannot execute deals. So, Ethereum has had its smart contract race enabled; and over 2800 are already using its network. On the other hand, Cardano examines its smart contract capabilities. It hopes to lunch them later in the year; August, to be precise.
Regardless of the enormous and glaring advantages that Ethereum has over Cardano in the smart contract environment, Cardano has a bright path ahead. Some experts speculate that Cardano may take over Ethereum.
Furthermore, Bitvavo described the Cardano mechanism comparison with some cryptocurrencies.
“The Cardano blockchain shows many comparisons with other blockchains, but the Cardano blockchain has different layers. This concerns the “Cardano Settlement Layer” and the “Cardano Computation Layer”. The first layer acts as a ledger, while the second layer keeps track of why transactions in the ledger take place.”
Cardano recently announced its major partnership with the Ethiopian Ministry of Education. On the other hand, Ethereum is more concerned with solving economic problems. So if you have been considering buying Cardano but are scared of its yielding, this point is enough to convince you not to chicken out. Hence, dig deeper. If you are convinced enough, go ahead and buy Cardano. Bitvavo is a legit platform to buy Cardano and other cryptocurrencies.
Similarities Between Cardano and Ethereum
One main similarity between Cardano and Ethereum is that developers can use both for similar or familiar features, including running custom programming logic (smart contracts) and building programs (decentralized applications).
Additionally, the duo uses smart contract technologies to provide options for decentralized applications.
ETH and ADA are among the most popular cryptocurrencies whose values are increasing. For instance, Ethereum has $400 billion; Cardano has $50 billion. Although the ETH is leading, the ADA is not far behind. It isn’t far from the truth that Cardano is growing, given the distance between its inception and its present status. However, the factors aforementioned are convincing enough to buy Cardano.