As a smart contract blockchain, it’s only natural to compare Cardano to the leader in the space: Ethereum.
Ethereum is not only the leading host platform for decentralized apps (dApps), it’s also the largest altcoin by market capitalization.
In this guide, we’ll compare the two projects to discover how Cardano measures up and whether it can overtake Ethereum.
Is Cardano faster than Ethereum?
Cardano is much faster than Ethereum, with the capacity to process over 250 transactions per second, multiple times faster than Ethereum’s 30 TPS.
Cardano recently underwent a minor upgrade which increased the block size from 64 KB to 72 KB. The 12.5% increase brings Cardano’s blocksize closer to Ethereum’s sub 80 KB limit.
Theoretically, the network can now include more transactions in a single block, increasing the network’s speed.
Cardano is more scalable than Ethereum and most other blockchains because it uses staking pools, groups of stakeholders with a common stake.
These groups reduce the number of nodes required to validate transactions and create blocks.
The validation process becomes faster with fewer validators since fewer entities need to achieve a consensus.
Both Cardano and Ethereum are undergoing network upgrades to increase efficiency and introduce more functionalities. They’re both working on sidechains that increase network capacity—a mechanism known as sharding.
Ethereum will implement sharding after transitioning to PoS consensus. At the same time, Cardano is scheduled to roll out sharding, in the Basho era, after activating their smart contract capability, in the current Goguen era.
With full sharding capability, the two networks should theoretically achieve similar transaction capacity, but this remains to be seen.
Is Cardano faster than XRP?
Cardano isn’t faster than Ripple’s XRP Ledger. XRP is designed to transfer value across the world rapidly.
Ripple’s current transaction speeds are 1,500 TPS with plans to rival conventional money transfer systems such as Visa, which can process as much as 60,000 TPS.
In contrast, Cardano can process about 257 transactions per second, making it almost six times slower than XRP.
Block production on the Cardano blockchain is also much slower than on the XRP Ledger, occurring every 20 or so seconds versus 3-4 seconds.
What is Cardano used for?
Cardano has two primary categories of applications:
- Cardano blockchain
ADA transfers value from one individual to the next the same way cash works. Additionally, ADA will facilitate smart contracts on the Cardano layer once the Cardano Computational Layer (CCL) launches on the mainnet. It’ll be used to pay for gas/transaction fees.
As a blockchain, Cardano has many applications. Here are a few examples:
- Education – Issuing immutable academic credentials and certifications through the Atala PRISM (IOHK) project.
- Retail – Detecting counterfeit goods through the Atala SCAN project, which offers a tamper-proof system to track product provenance from the manufacturer to the consumer.
- Agriculture – Managing supply chain processes by storing data on how and who handles food from the farmers to the grocery stores.
- Health Care – Maintaining immutable medical records to curb the widespread use of counterfeit medication.
Why is Cardano fast?
The Cardano blockchain is fast because it uses a highly scalable consensus mechanism.
Unlike mining, in Bitcoin and Ethereum, staking is an effective way to process transactions faster. Cardano’s implementation of delegated validators is among the most scalable consensus mechanisms.
ADA holders come together to form a staking pool which will then delegate the validation rights to a node operator.
Therefore, the network can validate transactions without relying on all the stakeholders—a few validators can perform their functions fast and efficiently.
Is Cardano better than Ethereum?
Cardano is better than Ethereum in some areas, including scalability, eco-friendliness, and transaction cost. Cardano has these advantages because it uses staking instead of mining, the current consensus mechanism in the Ethereum network.
Is Cardano a competitor to Ethereum?
Cardano serves the same purpose as Ethereum. However, it hasn’t launched all its features, meaning that it doesn’t directly compete with Ethereum.
At the moment, the blockchain can be used to transfer value, but its smart contract layer isn’t yet live. Once this feature is launched to the mainnet, Cardano will be a direct competitor to Ethereum.
Can Cardano surpass Ethereum?
Ethereum is currently the leading smart contract platform, a position envied by most blockchain projects, including Cardano.
The blockchain has several advantages, mainly being the first to market. Therefore, it has attracted a vibrant developer community. It is possible for another project, for example, Cardano, to come along and replace it, but it’ll be a hard task to accomplish.
Why is Cardano important?
Cardano is important for several reasons:
- It uses an eco-friendly consensus mechanism.
- It’s more efficient than most other blockchains in the market.
- It relies on academic contributions to improve its ecosystem.
- It brings diversity to the marketplace.
Also read: Is Cardano Metaverse?
Cardano is an important project, although it hasn’t launched all its features. At the moment, it might not be strong enough to replace Ethereum as the altcoin king, but it does have a shot of doing that in the long run if its core developers keep improving, iterating, and delivering on the roadmap.