Cardano Vs Ethereum

Cardano Vs Ethereum: Choosing One Among Them Is Not Easy

Comparing Cardano vs Ethereum is similar to comparing apples to oranges as Cardano tries to solve varied issues with Ethereum. For example, Cardano is aiming to solve PoS (Proof of Stake) mining problems whereas Ethereum is working on PoW (Proof of Work). 

So you are basically looking at two blockchains that are aiming for varied things and have their advantages and disadvantages. In this Cardano vs Ethereum article, we will be going over the variations among Ethereum and Cardano. 

Cardano Vs Ethereum: What Are These Coins?

You may find that both these coins are often compared to each other because both their networks offer similar services. Developers can use both Cardano (ADA) and Ethereum (ETH) blockchains for similar features that include operating custom programming logic which is also known as smart contracts and constructing programs like the decentralized applications. However, they both provide varied philosophies to how they approach their framework. 

But before we get into the comparison of Cardano vs Ethereum, let us have a look at the coins now. 


Cardano is a blockchain platform that provides a network for decentralized apps (dApps), smart contracts, and also side chains. Cardano was established by Charles Hoskinson who also co-founded Ethereum. This network has been made public since September 2017 following a lengthy development stage of nearly 2 years. Cardano avails ADA as its digital currency token where 1 ADA is worth $1.14 USD as of writing this. With respect to market cap, Cardano sits at 7th place just below SOL and BNB (Binance Coins) with an anticipated value of $43 billion cap.


Ethereum is a blockchain platform that is focused on decentralizing the web by using smart contracts. Before Ethereum was formed, Bitcoin had already carved the way but BTC is limited in what it can do. Bitcoin can only be utilized as a currency whereas Ethereum enables multiple use scenarios. It has been live since 2015 and employs ETH (ether) as its digital currency tokens where 1 ETH equals $3,127.28 USD at the time of writing this. With respect to market cap, Ether sits at 2nd place just above BNB with a predicted $402 billion cap as per the CoinMarketCap.

Cardano Vs Ethereum: The Comparison

Now that you have got an idea about both these coins, and also the Ethereum vs Cardano price prediction, let us start with the comparison. To compare Cardano vs Ethereum, we will be using four parameters that will help us find the difference in the operation of both these coins. 

Proof of Work vs Proof of Stake

PoW (Proof of work) is one way to authenticate transactions. Ethereum employs proof of work and depends on miners solving complicated problems to validate transactions for a reward. Proof of work is highly energy intensive and also environmentally unfriendly in comparison to proof of stake, the other choice for mining.

Cardano is inclining towards being more energy-efficient than other digital currencies based on proof of stake since there are lesser environmental tensions with this approach.

Proof of stake is where Ethereum and Cardano differ the most. With Cardano, they will employ a new protocol known as the Ouroboros whereas Ethereum is presently operating on proof of work, which is used by BTC also.

Ouroboros vs Ethash

Ethash is the hashing algorithm employed by Ethereum and it has been formed so that ASICs (specialized mining chips) would be less potent to mine this digital currency. This was done in order to try and keep everything decentralized but since mining is becoming profitable due to a rise in ETH value, we are witnessing a huge amount of centralization occurring around a few big players who have invested highly into dedicated mining farms.

Cardano tries to solve this problem with their new protocol Ouroboros where ADA is fully resistant to ASICs and is resistant to centralization with its novel strategy.

This is the explanation from their official website:

“Ouroboros is the first provably secure proof-of-stake protocol and the first blockchain protocol to be based on peer-reviewed research. Ouroboros combines unique technology and mathematically-verified mechanisms – which, in turn, combine behavioral psychology and economic philosophy – to ensure the security and sustainability of the blockchains that depend upon it.”

Digital Assets

Cardano and Ethereum both have a native digital assets. ETH is the native token of Ethereum and ADA is Cardano’s.

The ETH token is employed to pay transaction fees on the Ethereum network. The ADA token is used for the Settlement Layer of Cardano. With Cardano, customers can receive and send ADA or tokens or even assets which are standard ERC20 tokens.

Smart Contracts

Both Ethereum and Cardano enable for the formation of smart contracts which are scripts that will implement when certain needs are met like triggering an event or sending or receiving digital currencies.

This is a computer protocol that is intended to virtually facilitate, authenticate, or enforce the performance or negotiation of a contract. Smart contracts enable the performance of credible transactions without any third parties. These transactions are irreversible and trackable.

It is possible to create smart contracts so that payments in cryptos are released when certain scenarios are met like an expiry date or hitting a specific price with ETH or BTC acting as the currency for this transaction.

Transaction Speed

The speed of transactions on Cardano is prominently quicker in comparison to Ethereum which presently takes 15 seconds to fulfill a transaction while Cardano takes just 5 minutes for doing the same. The network congestion mixed with high fees and disorganized development forms many challenges for Ethereum.

Final Thoughts

After the comparison between Cardano vs Ethereum, it can be concluded that both these coins are both excellent projects that will undoubtedly alter the world of digital currencies. In terms of what is better, Cardano or Ethereum we believe they both have their own pros and cons. Even though Cardano aims more at being eco-friendly with PoS (proof of stake) and is resistant to ASICs, Ethereum has a much bigger user base and has a convenient time recruiting developers as well as larger community support.

In our opinion, Cardano sounds a lot better when studied in theory but it still has a long way to go before one can safely say that Cardano has done away with the chances of vulnerabilities and exploits.

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