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Is Cardano Ethereum Based (Explained)

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Cardano is one of the fastest-growing crypto coins in the market today. It shares many features with Ethereum and supports interoperability, making it an exciting project for many reasons. 

However, is Cardano Ethereum-based? Do these two coins run on an identical blockchain? Are there any similarities between Cardano and Ethereum? 

Is Cardano on the Ethereum Blockchain? 

Cardano does not run on the Ethereum blockchain network. Instead, it runs on its own secure, scalable, and sustainable blockchain called the Ouroboros Protocol.

Let’s take a quick look at it.

The Ouroboros Protocol

The Ouroboros Protocol is a proof-of-stake blockchain algorithm that validates transactions and accepts new blocks into the Cardano network.

One of its most elite features is energy efficiency, which trumps almost all other protocols while offering unparalleled security, speed, and performance. 

The Ouroboros blockchain comes with two layers:

  • The CSL (The Cardano Settlement Layer) transfers ADA and records transactions.
  • The CCL (The Cardano Computation Layer) holds the sense of the smart contract through which developers can program to move value.

Also, the equipment running this software lets participants contribute to the network through nodes.

Also read: Is Cardano The Same As ADA?

How Cardano Nodes Work 

Nodes on the Cardano network work in several different ways:

Validate Transactions

Cardano’s edge nodes handle crypto transactions and validate them using consensus, ensuring the whole process is cryptographically correct.

These nodes also allow slot leaders to accept new blocks into the system before enabling complete network access. 

Determine Slot Leader

mCore nodes are responsible for the staking process. Leaders on the Cardano chain receive allocations from leading stake pools. Participants with the largest stake pools create new blocks that go into the blockchain.

Data Transfer

Relay nodes allow data to move from mCore nodes to the open internet. 

What blockchain is Cardano on?

Cardano runs on the Ouroboros Blockchain Protocol, a different proof-of-stake protocol that relies on specific tools that keep it safe, operational, and stable. 

Unlike other blockchains, Ouroboros is a result of peer-reviewed research, making it a one-of-a-kind blockchain protocol. 

Features of the Ouroboros Protocol

Here are some unique features of the Ouroboros protocol:

Low Energy Consumption

Cardano consumes 4 million times less energy than Bitcoin, making it an energy-efficient solution for future use. You need much less power to mine blocks for Cardano than for other blockchains.

This aspect of the Ouroboros protocol also gives it better scalability and sustainability than its rival protocols.


To protect Cardano users from 51% attacks, the Ouroboros protocol uses a Proof-of-Stake model. If honest users hold this 51% stake, the blockchain remains impenetrable.

Also, no one specific person can control the protocol since the system randomly picks nodes to validate transactions.


Cardano incentivizes participants in their network to complete tasks by rewarding them. Any user who joins a stake pool or assigns a stake in ADA to stake a pool receives rewards.

Delegation of Leader Slots

Cardano administers network control through stake pools. Therefore, system operators can delegate their slots to one large pool to gain leadership of the slots.

As a slot leader, you increase your chance of selection by the network to add a block to the chain and earn rewards. 

What is Cardano?

Cardano is a revolutionary blockchain technology that runs on the proof-of-stake principle. It’s the first cryptocurrency network based on peer-reviewed research and evidence-based techniques.

Like other cryptocurrencies, Cardano gives users collective ownership of the network and can change rules through voting.

As stated above, Cardano runs on the Ouroboros protocol.

Is Cardano Similar to Ethereum?

There are few similarities between Cardano and Ethereum, and what they share is the general principle behind all cryptocurrencies. 

Both coins provide diversity in the cryptocurrency market as alternative coins to Bitcoin. Both coins also make robust platforms for decentralized application platforms.

Another curious thing is that both coins share a founder, Charles Hoskinson. Alongside Vitalik Buterin, he was an Ethereum co-founder. He’s also a co-founder of Cardano. 

Learn more: Does Litecoin Run On Ethereum?

Is Cardano Superior to Ethereum?

At the time of this writing, Ethereum is still superior to Cardano. Although Cardano faster than Ethereum, and it is still in early development but has shown potential to be faster, more energy-efficient, and cheaper on gas fees. 

Ethereum still holds superiority because it has more users and hosts a majority of all decentralized applications. Ethereum 2.0 is on the horizon to solve the network’s current problems, so there’s much to anticipate.  

However, Cardano makes a decent competitor, and if all goes well, who knows? It may overtake Ethereum.

Cardano (ADA) is so popular because of its scalable nature, ability to support decentralized solutions, and affordable price and gas fees. Also, Cardano is a relatively new entrant into the world of Cryptocurrency.

Its bold approach to decentralized solutions and stability has sparked the interest of investors.

Is ADA a Stablecoin?

The ADA is not a stablecoin, although it provides an excellent platform for stablecoins. There are about four stablecoin projects currently underway in the Cardano ecosystem.

They include:

  • Ardana
  • Djed
  • AgeUSD

Which Crypto is the Ethereum Killer?

Several cryptos are vying for the top spot as “Ethereum killers”. The top Ethereum killers are 

  • Tezos, 
  • Cardano (ADA)
  • Solana (SOL) and 
  • Polkadot (DOT)

In the recent past, these coins continued to onboard users giving them more compared to their peers, Bitcoin and Ethereum. 

Final Thoughts

Cardano and Ethereum are currently two of the largest coins in the market and rival each other for market capitalization, users, apps, and value. Cardano doesn’t run on the Ethereum blockchain but instead works on the Ouroboros blockchain. 

Except for some similar features as cryptocurrencies and sharing a co-founder, Ethereum and Cardano are two different protocols.