Two big brothers step into the Bar: Comparing the strengths between Cardano and Ethereum

Developer

01/07/2024

Cardano and Ethereum both offer unique strengths, innovations, and visions for the future of decentralized technology. Learning about different blockchains is not intended to identify a single winner. Instead, it's about appreciating the advances each platform contributes and the strengths they can have.

Cardano's strengths:

 

Ability of extension:
Instead of storing the entire network's transaction history, each account in Cardano only stores its own state.This means that as the network grows and the number of transactions increases, the amount of data that needs to be stored will not increase significantly.Thanks to this, the Cardano network can be easily expanded without being affected by data overload.
Low transaction fees:
Since there is no need to check the entire transaction history to validate new transactions, the necessary computational cost is also reduced.This results in lower transaction fees on the Cardano network compared to Ethereum. Besides all transaction parameters and status are known in advance, you also know the transaction costs before executing.
Redefining Transactions Per Second (TPS):
Simply checking the status of the relevant account helps authenticate transactions faster than having to check the entire transaction history.As a result, transaction speed on the Cardano network has also improved significantly. Ethereum users must be processed one by one in order because each transaction needs to be settled for the next transaction to be processed. On Cardano, a single transaction can serve one person, or 10, or 100, or 1000 people. While Cardano's TPS is 250, much higher than Ethereum's 30, Cardano can serve more than 250 people per second.
Formal Verification and High-Assurance Code:
Cardano uses rigorous mathematical methods to check the source code of the blockchain, called “Formal Verification” and “ High-Assurance Code“. Just like checking the problem with theory and formulas, Formal Verification and High-Assurance Code help ensure that Cardano's code works as expected and without errors. This results in a more secure and trustworthy blockchain.
Interoperability and Cross Chain Communication:
Cardano aims to facilitate interoperability with other blockchains, allowing for more seamless communication and value transfer across different networks. This feature can make it a more flexible platform for a variety of applications and integration with existing systems.
Multi-layer architecture:
Cardano's blockchain is divided into two layers: the Cardano Settlement Layer (CSL) for transaction processing and the Cardano Compute Layer (CCL) for smart contracts and applications. This separation allows for more flexibility and is easier to maintain and upgrade.
Research Methods:
Cardano's development relies heavily on academic research, with its protocols being peer-reviewed and published. This scientific philosophy can lead to a strong and well-thought-out foundation over the long term.
Token Locking and Native Tokens:
Cardano supports native tokens without the need for smart contracts, allowing users to create new tokens that work and are secured in user wallets like Ada. Additionally, Cardano's token locking feature could enable complex smart contract functions such as voting mechanisms or launching decentralized autonomous organizations (DAOs).
Governance model:
Cardano's governance model, through Project Catalyst and eventually the Voltaire era, aims to create a decentralized ecosystem where the community has a direct say in the future development of the smart network. through a democratic voting process.
Staking and incentives:
Cardano's staking model is designed to allow anyone who holds ADA to participate in the network's staking activities and earn rewards. Although Ethereum has also moved to a Proof-of-Stake system that allows holders to stake their Eth, this system is not as direct and user-centric as Cardano.

These are some of the reasons why Cardano's blockchain can be more secure, resilient, and useful against many challenges than Ethereum.

Advantages of Ethereum:

 

Pioneer advantage and network effects:
Ethereum was the first blockchain to introduce smart contracts, leading to a significant first-mover advantage. It has a larger user base, more developers, and a richer ecosystem of decentralized applications (dApps) and projects built on its platform than Cardano. This network effect is important for the development and sustainability of blockchain platforms.
Mature ecosystem and community development:
Ethereum's ecosystem is more mature, with more tools, documentation, and community support for developers. This vast development community has resulted in a rich variety of dApps spanning finance, gaming, art, and more.
Strong brand recognition and trust: As one of the first blockchains, Ethereum has built strong brand recognition and trust in the cryptocurrency community. This trust is a significant asset in the blockchain world, where security, reliability, and longevity are paramount.
Leading in Decentralized Finance (DeFi):
Ethereum is at the forefront of the DeFi movement, hosting the majority of DeFi applications. This includes many lending platforms, decentralized exchanges, and financial instruments.
Advancing development with Ethereum 2.0:
Ethereum is actively evolving with the transition to Ethereum 2.0, aiming to address current challenges such as scalability and energy efficiency. The move to a proof-of-stake (PoS) consensus mechanism is expected to significantly improve its transaction speeds and reduce its environmental impact.
Flexibility of smart contracts and dApps:
Ethereum's programming language, Solidity, is specifically designed for creating and deploying complex smart contracts. This flexibility has made Ethereum the preferred platform for developers looking to build complex and diverse dApps.
Widely applied and integrated:
Ethereum is widely integrated with many wallets, exchanges, and other blockchain services. Its token (ERC-20) has become an industry standard, facilitating token creation and exchange.
Liquidity and market capitalization:
Ethereum has a high market capitalization and liquidity, making it the preferred choice for investors and users looking to trade with cryptocurrencies.
Strong interest from organizations:
Ethereum has attracted significant interest from institutional and corporate investors, in part due to its powerful platform and potential to create enterprise-grade blockchain solutions.
Flexible fee structure:
Ethereum's EIP-1559 upgrade introduces a flexible fee structure that aims to make transaction fees a bit more predictable, improving user experience.


Each of these points highlights Ethereum's current strengths and areas where it may have an advantage over younger platforms. However, the blockchain sector is actively and rapidly developing – the story is still being written.

Conclude:

As you consider the strengths of different projects, it's important to remember that the blockchain sector is not a zero-sum game. Getting ahead is not about choosing the right racehorse. True power lies in knowledge, learning, and becoming an educated participant in the community. Whether you are a developer, investor or just a curious observer, understanding the diverse landscape of these platforms will enrich your perspective and contribute to a blockchain community more informative and comprehensive.

So let's continue this journey of discovery, not as a war between giants and men

source: https://www.lidonation.com/en/posts/two-blockchain-maxis-walk-into-a-bar