It is no news that investors over the years have constantly compared Cardano and Ethereum to determine which is better.
With Ethereum’s recent upgrade, we have witnessed a new version known as “Ethereum 2.0,” as dubbed by many investors.
Ethereum 2.0 has been a major departure from Ethereum, and one major piece of evidence that shows this is the adoption of the proof-of-stake protocol, which is different from the proof-of-work protocol previously used by Ethereum.
• Cardano is still better than Ethereum despite its upgrade to Ethereum 2.0, although the gap between these two has become much closer now than ever.
• Ethereum 2.0 has ushered in the PoS protocol for Ethereum, making it have similar offerings to Cardano.
• Currently, Cardano’s Ouroboros protocol is the first of its kind and is well known for its efficiency and top security.
• With Ethereum 2.0, investors can now stake, earn rewards, and become Ethereum validators, so long as they can stake up to 32 ETH.
SEE ALSO: Cardano Transaction Fees vs. Ethereum Transaction Fees (Best Comparison)
SEE ALSO: How Much Faster is Cardano than Ethereum?
Now the question lies: with Ethereum 2.0 using a proof-of-stake protocol similar to that of Cardano, is Cardano still superior?
In this article, we shall be answering this question, identifying certain comparisons between their official cryptocurrencies, and much more.
The Emergence of Cardano
Cardano was introduced officially into the crypto market in 2017 by Charles Hoskinson and had similar developers to Ethereum responsible for its emergence.
It was created with environmental sustainability in mind using pioneering technologies, as evidenced by the proof-of-stake and Ouroboros protocol.
Tagged “the Ethereum killer,” Cardano came with features that were better and more efficient in all ramifications than Ethereum, even capable of handling more transactions at a much faster rate than Ethereum.
Today, it is one of the biggest and best-performing blockchain platforms in the crypto market.
Ethereum to Ethereum 2.0
With the introduction of Ethereum 2.0, thanks to the Ethereum Merge, Ethereum has gotten far better than what it initially was.
Formerly, Ethereum was known to utilize the proof-of-work protocol, which gave Cardano a major advantage over it because of the high energy costs used by the PoW protocol. With Ethereum’s migration to PoS, it has gotten closer to Cardano than ever.
Now, investors can engage in staking activities, which are more efficient and rewarding than mining, and even become Ethereum validators, so long as they can stake at least 32 ETH.
The release of Ethereum 2.0 has made it a more alluring option for investors looking to use the best blockchain platforms for transactions.
Why Cardano may still be better than Ethereum 2.0
As earlier stated, Ethereum has witnessed a massive upgrade that has seen it become even more attractive to investors.
However, even though Ethereum 2.0 now makes use of the PoS protocol, Cardano still holds a slight advantage over it, especially in terms of functionality.
The reason for this is that Cardano is a dual-layer solution that features smart contract functionality and a currency that can be used to process monetary transactions, whereas Ethereum 2.0 is a single-layer solution that focuses mainly on managing smart contracts and dApps.
Another crucial factor could be Cardano’s Ouroboros protocol. The Ouroboros protocol is the first peer-reviewed and well-secured blockchain, of which Cardano is the first to implement.
Cardano is popular due to its ability to manage smart contracts, ADA transactions, and other functionalities efficiently while maintaining its high-security feature.
Since not many blockchain protocols can boast of this feat, this is the reason why Cardano may still be better than Ethereum 2.0, at least for now.
Comparisons between ADA and ETH
ADA and ETH are the official cryptocurrencies of Cardano and Ethereum 2.0, respectively. These currencies are known to be among the leading cryptocurrencies in the crypto market, as evidenced by their market performance.
They are also the official tokens used in staking and processing transactions on their respective blockchain platforms.
As of the time of writing, ADA is worth $0.3328, whereas ETH is worth $1240.11, according to CoinMarketCap.
That said, here are the comparisons between the two below:
|Main use||Monetary transactions and support for smart contracts||Smart contract support|
|Transaction function||Smart contract operations||Smart contract operations|
|Factor behind forks||Academic reviews and peer-reviewed research||General voting on what to do with the current blockchain|
|Maximum available supply||45 billion||None, but the total supply cannot grow by over 4.5 percent in one year|
|Type of protocol used||Proof of stake protocol||Proof of stake protocol|
A point to note about Cardano and Ethereum 2.0
I have already established in this article that Cardano may still be better than Ethereum despite its recent upgrade to Ethereum 2.0.
However, this does not mean that Cardano is bigger than Ethereum 2.0. Ethereum 2.0’s ETH alongside Bitcoin is the two largest cryptocurrencies in the crypto market, as evidenced by their market prices.
Also, trying to find out which is better between Cardano and Ethereum 2.0 shouldn’t be of utmost priority. What you should look at instead are the features and improvements of both platforms over time and how they fit into your needs as an investor.
The fact that both blockchains are constantly upgrading is a win-win and proof that they are top blockchain platforms.
Frequently Asked Questions (FAQs)
Will ETH 2.0 replace Cardano?
ETH 2.0 won’t replace Cardano. Both blockchain platforms offer unique features that make them beneficial to investors who make use of them.
Can Cardano become the new Ethereum?
Cardano still has some way to go before we can consider it the new Ethereum. Currently, the Ethereum blockchain platform has registered a lot of feats and has a cryptocurrency in ADA that is the second largest in the crypto market.
It remains to be seen if Cardano can beat this, although it cannot be denied how highly functional it is.
Cardano and Ethereum are two blockchain platforms that are highly attractive to investors.
However, it is up to you as an investor to decide which to use based on your expectations and preference. DIY research will be very important in helping you make this decision.
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