- 1 Ethereum and Cardano have gained prominent positions in the crypto industry with their efficient use cases and ongoing updates.
- 2 Ethereum 2.0 and Cardano Hydra are constantly trying to improve transaction speeds of cryptocurrencies and make them viable in the ever-growing technology industry.
- 3 Both networks are similar in terms of decentralization, security, token standards, consensus mechanisms, and open-source nature.
Ethereum Virtual Machine (EVM) compatible blockchains utilize the Solidity programming language, which dominates a significant portion of the blockchain ecosystem.
In contrast, Cardano uses Haskell generally for its security and speed. However, it is a concern for users because Haskell is difficult to understand and learn, which makes it unpopular among most developers.
Ethereum is an L1 technology. The Beacon chain, the Merge, and everything else coming up are all parts of the series of networks and prepare its architecture for rollups on L2.
The Ethereum blockchain was initially designed with an auction-based model. Whenever users want their transaction to be added to the chain, they have to bid on that space. This is why, whenever the network experiences congestion, Ethereum fuels bidding wars. This triggers price spikes and causes slower speeds.
Cardano also operates on two layers, whether users believe it or not. The silent layer on Cardano is used for transactions. The computational layer, also known as the Cardano Settlement Layer (CSL) of the network, uses smart contracts for the successful run of dApps and the handling of smart contracts and applications. The distribution into two layers enables flexibility and easier upgrades to achieve an average of 250 tps (transactions per second).
A single organization named the Ethereum Foundation oversees all the Ethereum operations. However, the Ethereum Foundation does not run Ethereum and this claim is true now more than in the past. This is because the chain has become much more decentralized over time.
However, Cardano works with three independent organizations, which include:
IOHK: It is the organization that coded Cardano and is currently responsible for the PoS algorithms it uses.
The Cardano Foundation: The Foundation is responsible for the blockchain development.
Emurgo: It is an external-facing organization whose mission or responsibility is to onboard large-scale businesses to join Cardano.
Moreover, Cardano has a Treasury, which operates as a separate entity from these organizations. When a block is added to the chain, a portion of the ADA rewards are added to a separate Treasury wallet. When a change is proposed to the network, token holders are asked to vote for the change. Then the decision is taken based on the majority. If the change gets the majority of votes, then a grant gets approved and released by the Treasury.
On Ethereum’s Layer 1, it can process up to 30 transactions per second (tps), and despite numerous criticisms around Cardano’s developmental speed, the chain is capable of processing roughly 250 transactions per second.
In the future, with the upgrades on both networks, they both have the potential to increase speeds further. Cardano’s Layer 2 upgrade, Hydra, is capable of raising Cardano’s TPS to a significant number of 2.5 Million, and simultaneously, the update on the Ethereum network is targeting increasing tps to 100,000.
Ethereum has more than 3000 decentralized applications (dApps) running on it and Cardano has a little more than 1,000 decentralized applications.
Ethereum is the first blockchain that enables smart contracts so it also has the first DeFi dApps. These DeFi apps include Uniswap, the first decentralized exchange that relied on an automated market maker model, and other DeFi giants, including Aave and Curve. Looking at the total value locked (TVL), Ethereum’s DeFi ecosystem surpassed all the other chains.
Cardano’s DeFi ecosystem also has loyal customers, despite a lower TVL of less than $100 million currently. Cardano’s DeFi also holds its projects, such as Miniswap, WingRiders, and Sundaeswap.
Conclusion: Ethereum 2.0 vs Cardano Hydra
Ethereum has prioritized security and decentralization over scalability. Even today, scalability is still a challenge in the development and improvement of Ethereum. The updates on Ethereum are complete and it has become an integrated part of the Ethereum protocol and it is not known as Ethereum 2.0 anymore. The Ethereum network will continue to grow with innovation and updates to technology.
Cardano Hydra is set to enable developers to create specialized smart contracts on the Cardano blockchain. It will increase the transaction speed and throughput. Moreover, it will reduce transaction fees.
Which is the native token of Ethereum?
The native token of Ethereum is Ether.
Which is the native token for Cardano?
The native token of Cardano is known as ADA.
Which of the two has a capped supply of tokens?
Cardano has a capped supply of 45 billion ADA tokens, while Ethereum has an uncapped supply of ETH with a circulating supply of 120,182,821 ETH.
Saurav Bhattacharjee is in charge of the Broadcast development team of The Coin Republic.
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