Those who follow the world of cryptocurrencies must have heard of the Cardano vs Ethereum argument. There is a frequent comparison between Cardano (ADA) and Ethereum (ETH), as both networks offer similar services. Both the Ethereum and Cardano blockchains can be used for similar functions, such as running custom programming logic (smart contracts) and creating programs (decentralized applications). The core algorithm of any blockchain network is used to create blocks and validate transactions. The main difference is that Ethereum’s Proof-of-Work blockchain is currently less flexible than Cardano’s Proof-of-Stake Ouroboros consensus method.
In 2015, Ethereum was introduced as a blockchain platform. Ether (FTH) is the platform’s cryptocurrency. Cardano was launched in 2017 and ADA is the platform’s cryptocurrency.
Ethereum’s Proof-of-Work blockchain has a proven track record. In order for the blockchain to function, miners perform many complex calculations. One Ether is a unit of measure for the amount of computing power used.
Likewise, Cardano’s Ouroboros has a Proof-of-Stake consensus, replacing miners with validators. Traditional mining consumes much more energy and resources than Proof-of-Stake mining.
Since its inception, Ether has evolved a lot and is still considered one of the most powerful cryptocurrencies. Cardano, on the other hand, is one of the most secure digital assets due to its meticulous development. ADA was previously in a downtrend, but has since gotten relatively cheap, making it a great investment option for existing investors.
Cardano looks like a decent investment in the short to medium term. It is reasonably priced and is likely to increase in value as the DApp market expands.
Ethereum, with its high market share and the planned improvements in Ethereum 2.0, is likely to be a good cryptocurrency to own in the long run.
However, despite these factors, it is difficult to say which cryptocurrency will have a better chance in 2022. Both have had their ups and downs and it is difficult to predict whose value may fall or rise.
Therefore, investors should be careful before investing.