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What are the key differences between Ethereum and Cardano?

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Ethereum and Cardano are two of the most popular and influential blockchain platforms in the crypto space. Both have ambitious visions of creating a decentralized, scalable, and programmable network that can support various applications and innovations. However, they also have significant differences in their design, development, and governance. In this article, you will learn about the key differences between Ethereum and Cardano, and how they affect their performance, security, and potential.

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1 History and goals

Ethereum was launched in 2015 as the first platform to enable smart contracts and decentralized applications (DApps) on a blockchain. Its goal is to become a global computer that can execute any code and host any service without intermediaries or censorship. Cardano was founded in 2017 by Charles Hoskinson, a former co-founder of Ethereum, who wanted to create a more scientific and rigorous approach to blockchain development. Its goal is to become a social and financial operating system that can address the challenges of scalability, interoperability, and sustainability.

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2 Architecture and consensus

Ethereum and Cardano have different architectures and consensus mechanisms that affect their speed, security, and energy efficiency. Ethereum currently uses a proof-of-work (PoW) system, where miners compete to validate transactions and earn rewards. This makes the network secure but also slow, costly, and energy-intensive. Ethereum is planning to transition to a proof-of-stake (PoS) system, where validators stake their coins to secure the network and earn rewards. This is expected to improve the network's scalability, efficiency, and environmental impact. Cardano already uses a PoS system, called Ouroboros, which claims to be the first provably secure and peer-reviewed PoS protocol. It also divides the network into smaller units, called epochs and slots, to increase its throughput and reduce its latency.

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Tanmay Patange

Blockchain PR, Content & Communications Specialist
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Quick update for those tracking Ethereum: It made the move to a Proof of Stake (PoS) consensus mechanism in 2022. Just keeping things accurate!

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3 Development and governance

Ethereum and Cardano have different approaches to development and governance, which reflect their philosophies and cultures. Ethereum follows a more experimental and agile method, where it iterates and improves its features based on feedback and demand. It also has a more decentralized and community-driven governance, where proposals and decisions are made by various stakeholders, such as developers, users, and miners. Cardano follows a more formal and systematic method, where it applies academic research and peer review to its design and implementation. It also has a more structured and hierarchical governance, where proposals and decisions are made by a network of entities, such as the Cardano Foundation, IOHK, Emurgo, and the treasury system.

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4 Smart contracts and DApps

Ethereum and Cardano both enable smart contracts and DApps, but they have different languages, frameworks, and standards for creating and running them. Ethereum uses Solidity, a high-level language that is easy to learn and use, but also prone to errors and bugs. It also uses the Ethereum Virtual Machine (EVM), a runtime environment that executes the code and manages the state of the network. Ethereum has a large and diverse ecosystem of DApps, covering various domains such as finance, gaming, identity, and social media. Cardano uses Plutus, a low-level language that is more secure and reliable, but also more complex and challenging. It also uses the K framework, a formal specification language that verifies the correctness and functionality of the code. Cardano is still in the process of launching its smart contract and DApp platform, called Goguen, which aims to offer more flexibility, interoperability, and usability.

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5 Scalability and interoperability

Ethereum and Cardano both face the challenge of scalability and interoperability, which are essential for achieving mass adoption and innovation. Ethereum is working on several solutions to improve its scalability and interoperability, such as sharding, layer-2 protocols, and bridges. Sharding is a technique that splits the network into smaller and parallel chains, called shards, that can process transactions faster and cheaper. Layer-2 protocols are solutions that run on top of the main chain, such as Plasma, Rollups, and Channels, that can handle more transactions and interactions off-chain. Bridges are connectors that link Ethereum with other blockchains, such as Polkadot, Cosmos, and Binance Smart Chain, that can enable cross-chain communication and exchange. Cardano is also developing several solutions to enhance its scalability and interoperability, such as Hydra, sidechains, and native tokens. Hydra is a technique that creates multiple state channels, called heads, that can handle transactions and computations off-chain. Sidechains are sub-networks that can connect Cardano with other blockchains, such as Bitcoin, Ethereum, and Litecoin, that can enable cross-chain transfers and verification. Native tokens are assets that can be issued and managed on Cardano without requiring smart contracts or gas fees, that can enable multi-asset functionality and diversity.

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Howard Prager

Biometric Security Investor
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Bridges are sometimes hacked because phishing gets role players to give up their credentials. If role players are required to use ITBIOMETRICS Biometric Credentialing Device (BCD) it would minimize the risk.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the key differences between Ethereum and Cardano?

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3

4

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6

1 History and goals

2 Architecture and consensus

3 Development and governance

4 Smart contracts and DApps

5 Scalability and interoperability

6 Here’s what else to consider

Blockchain

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What are the key differences between Ethereum and Cardano?

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6

1 History and goals

2 Architecture and consensus

3 Development and governance

4 Smart contracts and DApps

5 Scalability and interoperability

6 Here’s what else to consider

Blockchain

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