Ethereum Vs Cardano: Key Differences To Watch Out

Republished By Plato

Followers: 0

Understanding Ethereum and Cardano

Ethereum in Brief

Ethereum is a network of computers across the globe that follows the Ethereum protocol. It is a community-run technology that operates on blockchain to enable smart contracts and crypto trading. It is one of the best altcoins to invest your money in.

Ethereum’s History and Vision

Ethereum was created by Vitalik Buterin in 2013 but gained public awareness in 2014 after the Bitcoin Conference in Miami, Florida. It promotes itself as a peer-to-peer network that can be used by anyone interested in coordinating globally, creating organizations, building apps, and sharing values. Ethereum cryptocurrency, Ether, can be used for digital global payments.

Cardano in Brief

Cardano defines itself as the first blockchain platform to be developed through peer-reviewed research. It offers unparalleled security to its users and helps them ease transactions and exchanges & provides a system for organizations to grow. It works on the famous proof of stake model(PoS), with a distinctive two-layer structure.

Cardano’s History and Vision

Cardano was developed by Charles Hoskinson and Jeremy Wood in 2017. Charles was one of the co-founders of Ethereum. During its launch, this highly valued cryptocurrency created 31 billion tokens. It also raised $60M+ during the initial coin offering in 2017.

Cardano’s core vision is to disrupt the way blockchains reach consensus so they utilize a proof-of-stake called Ouroboros to be the most environmentally sustainable blockchain platform.

Ethereum vs Cardano: Key Parameters for Comparison

The key differences between Ethereum and Cardano blockchain platforms lie in their credibility, ability to process high-volume transactions, and other parameters. Here is a comparative analysis between the two.

Points of Difference	Cardano	Ethereum
*Token*	The key difference between Ethereum and Cardano is in the hard cap set on the total supply. The supply of Cardano cannot exceed the maximum cap set at 45 billion coins.	Ethereum has not set any upper restrictions on the number of coins to be supplied in the cryptocurrency market. In contrast, its supply is set to increase at a fixed rate of 4.5% annually.
*Transaction Speed*	Cardano provides a transaction speed of approximately 250 per second.	The transaction speed lies between 15 seconds to 5 minutes for Ethereum.
*Transaction Fees*	The transaction fee stands at 0.16 USD.	The average transaction fee is approximately 1.164 USD.
*Nodes*	Cardano also operates on three nodes that take care of crypto transactions, help participate in blockchain governance, and send information between mCore nodes and the public internet.	Ethereum works on three popular nodes to run its operations smoothly. These nodes include light, full, and archive nodes. Each node has its function ranging from ensuring accuracy to containing transaction data and history from previous blocks.
*Scalability*	Cardano is more flexible than Ethereum and can handle more transaction volumes.	Ethereum cannot handle more transactions and the system faces a lag when more investors use the platform at the same time.

Future Outlook: Which AltCoin is a Better Investment

Whether to invest your money in Ethereum vs Cardano depends on your investment preferences and risk appetite. However, crypto experts believe that investing in Ethereum is more beneficial because of the support it gets from its developer community and large ecosystem.

In contrast, investment in Cardano can go high for long-term acquisitions as it is growing in emerging markets. The popularity of this crypto depends on the support it is getting in from its growing user base. However, you need to wait a while to see how it will impact the growth and prices of Cardano.

Conclusion

Investment in cryptocurrencies might be risky because of market volatility. However, having proper knowledge of different currencies might help you make a better decision. If you are looking to park your funds in the top cryptos, understanding the Ethereum vs Cardano differences is the first step you should take.