17 Aug 2021 9:38 AM +00:00

Cardano vs Ethereum: What’s The Difference?

Cardano and Ethereum are two of the most popular cryptocurrencies in 2021, but what is the difference?

Both will both undergo dramatic changes in the near future. The Cardano smart contract release and Ethereum 2.0 launch are set to bring the two cryptocurrencies closer than ever.

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Here’s a look at Cardano vs Ethereum.

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Cardano vs Ethereum Differences

One of the largest differences between Cardano and Ethereum is the process in which transactions are validated, and new ETH/ADA enters circulation.

The Cardano network uses a proof-of-stake algorithm for this. Proof-of-stake is deemed the more energy-efficient and environmentally friendly method compared to the proof-of-work algorithm, alongside a significantly higher transaction speed and lower transaction costs.

Ethereum currently uses proof-of-work to mine ETH and validate transactions on the blockchain. However, this will soon change. The upcoming Ethereum 2.0 update will introduce Ethereum staking and remove mining from the network. The EIP-1559 London Hard Fork also cut down the transaction fees (or gas) required.

Another soon-to-go difference concerns smart contracts. The Ethereum network enables the use of smart contracts, allowing for a variety of programs and agreements to take place on the blockchain, expanding its utility.

Cardano’s blockchain does not allow for smart contract application – yet. The Cardano Alonzo hard fork will go live on September 12, bringing with it Cardano’s own smart contracts. This will also allow the Cardano network to host DeFi apps, of which Ethereum has a majority of the current market share.

Cardano vs Ethereum History

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19-year-old Vitalik Buterin first published the Ethereum whitepaper in 2013, ahead of its 2015 release. Cardano launched two years later in 2017. It was the creation of Jeremy Wood and Charles Hoskinson, who also helped create Ethereum.

Ethereum thrived through the use of DeFi and dApps on its blockchain, allowing others to offer various services, applications, and tokens through its network.

Cardano’s history is rooted in its academic and research-driven approach. Its use of peer-reviews and thorough testing means development and adoption has been slower than other networks and currencies, but is vital to Cardano’s philosophy and wider approach.

Cardano vs Ethereum Price History and Market Cap

At the time of writing, 1 ADA costs $2.08, with Cardano’s total market cap sitting at just over $67 billion. In comparison, ETH’s price is $3,194.07, with a total market cap of $374.9 billion (via CoinMarketCap).

There are 117,139,744 ETH in circulation, compared to 32,127,671,544 ADA.

In terms of recent price history, Ethereum’s price was $1,964 on July 18 – one month ago, while ETH started 2021 at $736. At the same intervals, Cardano’s price was $1.20 and $0.18, respectively.

Read More: Ethereum Burn Rate: How Much ETH Burned Since The London Hard Fork?

[Featured Photo by Executium on Unsplash]