Cardano’s network has seen gains over the past few weeks, having some of its loyal followers referring to the platform as “Ethereum Killer.” Meanwhile, Cardano has some shortcoming that showcases the platform’s weakness.
Remember, a non-profit organization operates Cardano. That way, the crypto platform cooperates with academe to research and update the platform’s features and tools. Also, Cardano refers to its native coin, ADA, as a ‘first third-gen crypto.’ That is because the native token can solve the interoperability and scalability dilemma related to previous crypto projects, including Ethereum and Bitcoin.
Bitcoin has experienced a lot of pressure in the past months due to its high electricity consumption. The issue is that Bitcoin uses the Proof-of-Work consensus, a crypto mining mechanism that is energy-intensive.
Unlike BTC, Cardano uses a Proof-of-Stake consensus. This model uses less energy.
Meanwhile, network scalability is a vital thing that digital assets battle to solve.
Besides Cardano, ETH is now shifting to a Proof-of-Stake model. The ETH 2.0 project, anticipated to launch by the end of next year, has two crucial changes for the platform: staking and sharding. Sharding involves breaking the ETH blockchain into definite ‘shards.’ Every shard can serve independently as a blockchain that hosts transaction validators and ‘smart contracts.’
Moreover, ETH 2.0 miners can use the master nodes to lock up or stake Ether. In such a case, users get the transaction rewards based on the staked Ether by an authenticator. With these changes, Ethereum’s network can solve the carbon problems. Moreover, users will enjoy about 100K transactions every second.
Now, what does Cardano has? Well, each critical update on Cardano’s platform is peer-reviewed, allowing optimal execution. Also, Cardano appears to win the race as far as transaction processing power is concerned. For example, the site’s Hydra solution would speed up the system, completing around 1 million transactions each second. That translates to Cardano processing 10X more transactions than ETH 2.0.
On the other side, Ethereum seems to win in dApps and smart contracts. As market players expect Cardano to launch its ‘smart contract feature, Alonzo upgrade, on August 13, ETH has 2,822 dApps, accounting for 78.3% of the overall ecosystem. With that, Cardano enthusiasts may have to forget about the “Ethereum Killer” phrase for some time.
Will Cardano overtake Ethereum? Share your views below.