The cryptocurrency market started off extremely small when it was first introduced to the real world economy. However, the market quickly flourished and turned itself into one of the biggest markets in the world today. The market that was prized at a few dollars at its start has now turned into a trillion dollar crypto economy of its own.
The investors who realized the potential of the crypto market and invested early in it are now amassing a large amount of wealth. Inspired by their success, countless investors have started investing in cryptocurrency and if you want to be one of them then you can read more about how to do so. The most popular cryptocurrencies that most investors are investing in right now are Bitcoin, Ether and Cardano.
Amongst these two, Cardano and Ether have attracted the most attention recently because of their insane amount of price increase in the recent years. The problem is, many crypto investors who are new to the market have no idea what’s the difference between Cardano and Ethereum. Because of this, they don’t know which investment is the perfect one for them.
If you too are one of these investors then don’t worry because we have you covered. In this article, we will be listing several key differences between Cardano and Ethereum and see what defines each of these cryptocurrencies the most. Read the article till the end so that you don’t miss out on crucial details.
What’s the actual difference between Cardano and Ethereum?
Cardano is a much newer cryptocurrency compared to Ethereum and has emerged as one of the most popular alternatives to Ethereum as Ethereum emerged as an alternative to Bitcoin. Thus, in some aspects, they are quite similar such as their application function which is mostly smart contracts. They also have extremely similar goals to achieve, like having a stable decentralized system for investors to use.
With that out of the way, let’s focus on where each of these cryptocurrencies is vastly different. Firstly, both of them share different blockchain networks and thus have completely different ways to access them. Ethereuem uses PoW (proof of work) blockchain protocol, same as Bitcoin, which requires extensive mining rigs to solve complex mathematical problems that, in turn, lets users obtain Ether, the cryptocurrency of the Ethereum network.
On the other hand, Cardano uses the newer PoS (proof of stake) blockchain protocol which does not require extensive physical mining rigs to access their cryptocurrency. This makes Cardano a much more environmentally friendly cryptocurrency than Ethereum, whose mining operations, along with Bitcoin, consume as much energy as Thailand’s annual power use.
Thus, while Ethereum may be the older and larger cryptocurrency on the market, it has extremely low sustainability and the resources required to support the market are growing every day.
That being said, there are talks of Ethereum moving on to the PoS protocol in the coming years so that it becomes a much more eco-friendly option for everyone. Both of the cryptocurrencies also have drastically different symbols for their cryptocurrency with Cardano’s being ADA and Ethereum’s being ETH.
Significant factors about Cardano
Let us learn more about the advantages Cardano has over Ethereum and why it may prove to be an excellent choice for your next crypto investment.
One of the most significant advantages Cardano has over Ethereum is that it runs on the Ouroboros PoS protocol. It was created by the network itself to ensure that their blockchain network becomes secure from external parties and it has proven to do so numerous times. When you invest in Cardano, you not only invest in a cryptocurrency that is based on the sustainable PoS protocol but also on the most secure version of it.
Cardano is created using actual academic research and methods that have the goal of ensuring optimal results in the coming future for the cryptocurrency. Each of the cryptocurrency’s creation phases was strongly regulated and supported with a framework that was based entirely on methods that were approved from research, incorporated insights from its peers and their reviews, and based their structure on the basis of actual evidence that helped the cryptocurrency become better.
In today’s cryptocurrency market, Cardano is a substantially more profitable investment than Ethereum because of the phenomenal market growth it has seen in the last few years. In the recent few months, Cardano’s market value increased by a gigantic average of 2,300% which is massively better than Ethereum’s 600%.
Significant factors about Ethereum
Now that you know what factors make Cardano better, it is time you understand why Ethereum is the preferable choice for most miners and crypto investors in the crypto market.
The prime reason is that Ethereum is considered to be the largest cryptocurrency in the world after Bitcoin. The network has been around longer than Cardano and also has a much more stable market than its counterpart. Because of its extensive network, Ethereum offers a number of blockchain based applications and contracts on its network for investors to use. These options are perfect for many crypto investors out there who are looking for a chance to invest in the market.
While still an idea that is yet to be fully developed, Ethereum is planning on reforming its entire blockchain to accommodate the PoS protocol and discard the PoW one in regards to its excess resource utilization and providing sustainable investments to its users. When this happens, it is only bound to increase the currency’s value dramatically.
While Ethereum’s growth rate has been slower than Cardano’s, it is still a cryptocurrency with a considerably larger value amongst the two. While it may not have the same price hikes as Cardano does, it also does not have the frequent price crashes that are attached to Cardano. Ethereum has relatively stable prices for its market that tend to follow the general trends in the cryptocurrency market.
There are a lot of differences between Ethereum and Cardano and these differences can really impact which cryptocurrency is the perfect choice for you. We hope this article was insightful for you and if it was, please consider following our article for regular updates as it will help us out immensely.