What Are the Differences between ETH and ADA?


What Are the Differences between ETH and ADA?

When you are selecting a coin to invest in, you might be checking Ethereum as one of the most viable options. And indeed, the coin value is growing ex

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When you are selecting a coin to invest in, you might be checking Ethereum as one of the most viable options. And indeed, the coin value is growing exponentially. Some specialists even believe that Ethereum might become more valuable than Bitcoin over time. Time will tell whether it is the truth or not but if you are considering Ethereum, you might be checking another coin called ADA for the same purpose. Moreover, with a similar functionality, ADA is much cheaper than Ethereum. Might Cardano be a better option for a long-term investment? Let us have a closer look at both coins before you swap your ETH to ADA.

Ethereum and Its Functionality

The Ethereum blockchain is similar to any other blockchain when it comes to its main characteristics such as immutability, decentralization, and transparency. However, the major innovation that the ETH blockchain has introduced is the support of smart contracts and further, the support of decentralized applications and decentralized finance. These peculiarities are the main benefits that the network could and can offer to developers and users. 

Whatever is done on the blockchain, it shall be paid for. The payment is called a gas fee and during the last years, this fee has grown to be pretty high. This is one of the biggest complaints the ETH users and developers have about the network. 

Another issue that the Ethereum blockchain started facing is the issues with scalability. There are so many users on the network that sometimes, the network gets clogged to the extent it cannot perform transactions efficiently or the gas fee surges to the extent that performing a transaction might become unprofitable.

Cardano and Its Functionality

Cardano was created to eliminate the issues the Ethereum blockchain started facing. Therefore, it can be expected that Cardano would support everything that the competitor’s network supports. 

And indeed, developers can create on the Cardano network smart contracts and decentralized applications. However, it would be illogical just to start another project that is the same as Ethereum. Therefore, Cardano developers have introduced some changes to the ETH functionality and implemented them in the ADA blockchain.

Therefore, before you start checking the Holochain prediction 2022–2025, make sure you do not want to try ADA.

Differences Between Cardano and Ethereum

The main differences between ETH and ADA the two projects are the following.

The very first difference was in the basics. Ethereum was the first project of its kind, and therefore, nobody could forecast the scalability issues it might face. ADA was created later and its developers had an opportunity to learn from the mistakes the main blockchain developers have made. So, the approach of Cardano is rather academic. The project developers first study the matter and then, based on the knowledge acquired and a deep scientific analysis, they advance with a new solution.

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Ethereum has been in the market for several years longer than Cardano, and it impacts the network use. The number of smart contracts and dApps that run on the first blockchain is incomparably higher than those that run on the latter one.

The main difference is the consensus protocol. While Ethereum still runs on the PoW, and the number of coins that can be mined is unlimited. Cardano has been applying Proof-of-Stake from the very start, and the maximum number of tokens is limited to 45 bln. This is a significant advantage. However, many specialists believe that as soon as ETH moves to PoS, it will leave all its current competitors behind. For now though, Cardano is incomparably more ecologically friendly and efficient compared to its main competitor. The energy consumption is another issue that the ETH network faces with its PoW. 


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