Cardano is an open source and decentralized public blockchain platform with its own token called ADA. It works on the proof of stake consensus which gives it an advantage over other cryptocurrencies when it comes to being energy efficient. In this article, we look at 3 reasons why Cardano is being claimed to be better than Ethereum.
Cardano is also called ‘ Ethereum killer ‘.
It is currently at the 5th position in terms of total market cap but earlier this year, it was the third largest cryptocurrency in the world after Bitcoin and Ethereum. Charles Hoskinson, the founder of Cardano and former co-founder of Ethereum in an interview given to Yahoo argued about the scales at which it is better than Ethereum.
As we move ahead with the reasoning, it is important to know that Hoskinson’s split up with Ethereum was due to a dispute between him and Vitalik Buterin in 2015. Hoskinson wanted to make Ethereum a profitable entity while Buterin wanted to continue it as a non profit organization.
Reason 1 : Ethereum on a suicidal mode
Hoskinson feels that with the transition of Ethereum for ETH to ETH 2.0 will be self destructive and Ethereum will go on to kill ETH in that process. Hence, it will not be Cardano but ETH 2.0 that will kill Ethereum in his opinion.
Reason 2 : Process smart contracts with identity, compliance and Meta Data
The second argument Hoskinson gave that while Ethereum can process smart contracts which is awesome, Cardano can do it much better. It is built with an objective of doing more holistic things.
Cardano can process smart contracts with identity, compliance, Meta data and automated regulation on a scale of billions of people unlike its rival. He said that the project was built around to bring identity into the blockchain system.
Reason 3 : Ethereum suffering with lack of Evolution unlike Cardano
The third argument Hoskinson presented was related to Ethereum being too big to evolve for better. He gave the example of Bitcoin and said that both BTC and ETH 2.0 even after evolving were suffering from the similar problems.
“The bigger these systems get, the slower they evolve. Look at Bitcoin, you have these Bitcoin co-developers who desperately want to evolve the system. They want to add smart contracts, side chains and new cryptographic protocols but they just can’t get it done. Even though they all agree it is a good idea. They are such a big boat. It’s like a cruise ship [where] you move the wheel but it doesn’t move for a long time. Ethereum is suffering from that problem [too]. “
What makes Cardano better is while Ethereum struggles with these evolutions, ADA already has these things in the core part of its roadmap. Ethereum doesn’t have an on chain governance system like Cardano.
With the on chain governance system, Cardano can collect protocols to offer support to billions of people in developing countries and most importantly in poor regions. Hoskinson said that Cardano has cooperated with the governments of countries like Ethiopia, Tanzania, and Georgia to benefit their citizens while Ethereum doesn’t care about it.
Cardano finally thriving on its model
Cardano has taken a lot more time than many of the investors would have liked. It was launched in 2017 on proof of stake consensus and it sensed a great chance to be recognized for its energy efficiency as soon as Elon Musk tweeted about Bitcoin being highly energy inefficient.
While Musk had created a sense of furore with his tweet among Crypto community, Cardano was one of the few cryptocurrencies which was getting a positive insight from everyone.
While before the tweet, its price was $ 1.5528, it went up to $ 2.3 in the next 3 days when every other cryptocurrency was crashing. Even though Cardano emerged late in the crypto market considering how early it was found, it has finally started to reap the rewards of all the patience and perseverance.
It is being traded at $ 1.48 at the time of publishing this article.