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Cardano vs Ethereum | Equitable Analysis

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Cardano vs Ethereum | Which Coin is Better?

Learn about the latest differences between the two similar second and third generations of blockchain tech — Cardano and Ethereum.

While the third wave of technology is hitting the generation, Cardano and Ethereum are within erupting projects.

Exploring blockchain platforms, I've come to understand that the one thing that makes a project unique is how its transactions and accounts are being validated and confirmed.

Among several trending decentralized projects in the crypto markets, we shall be exploring: Cardano (ADA) and Ethereum (ETH).

These are two similar blockchain networks, and they run on Blockchain's intelligent contracts innovation that allows for building ICOs.

The significant difference when it comes to ADA and ETH is their design mechanism. Ada uses Ouroborus (a 50% pos protocol) while eth uses PoW (similar to Bitcoin's)

This guide will dissect the variability between these two and what you need to note when venturing on each project.

Difference between Ethereum and Cardano 

What is Ethereum?

Ethereum is an open-source, decentralized blockchain that runs on smart contract innovation, where programming codes are stored and allows the development of Decentralized applications (DApps).

Following up on Ethereum’s background:

Ethereum aims to introduce a more transparent and seamless internet.


Ether is the intrinsic currency of the ethereum public app,  and it became available for trading in August 2015; it's currently trading at $3517 on various crypto exchanges.


Following Vitalik Buterin's years of work experience with Bitcoin magazine, in 2013, he founded ethereum. Given his failed proposition for a scripting language to the Bitcoin community, he created ethereum in January 2014. He teamed up with a few of his colleagues Hosk and launched the platform in Mid-2014.

What is Cardano?

Cardano is an open-sourced decentralized Blockchain platform that also runs on Blockchain natural features. Smart contract. According to Cardano's whitepaper released on the 9th month of 2017, the platform aims to solve the common issues associated with the first and second generation of Blockchain. These are sustainability, scalability, and interoperability.


Cardano Ada is the innate currency of the Cardano network. (Just as Ether is to Ethereum). Ada was available for trading in October 2017, and it's currently trading at $2.5.


We are taking a brief look at Cardano's limelight.

The Ouroboros platform was launched in 2017 by IOHK. The ethereum's co-founder got the interest of three organizations (IOHK, Emurgo, and Cardano foundation). They are looking to build an equilibrium between the users and regulators, merging privacy and user-friendly regulations for fair financial service.

Consensus models of Ethereum vs Cardano 

Unique features of Ethereum

Ethereum is made of up the following features:

- EVM ethereum virtual machine.

EVM is the core feature of ethereum. It allows thousands of decentralized applications to run on the eth network. And these apps run on this feature.

With this feature, developers can convert any centralized application that can be decentralized without building an app from scratch.

- Smart contracts

This is another extricate feature of ethereum. It's the oldest feature of the whole blockchain platform, and it became widely used on ethereum. Smart contracts can power a decentralized autonomous organization DAO, and they are protocols that provide a completely transparent service.

Ethereum Consensus

Currently, ethereum operates on PoW just as Bitcoin; however, they're looking to counter the common shortcomings existing within the network.

To have a safer, cost-efficient, and faster network, ethereum is considering a consensus upgrade.

Ethereum is already delving into using Casper——a consensus protocol upgrades merging POW algorithm to pos and BFT algorithm, to achieve the earlier stated features.


Sharding: this innovation helps break the Blockchain into pieces and allows nodes to only store and record essential partitioned blocks rather than the whole Blockchain. This aids faster transaction helps prevent lagging in the network.

Plasma: is an innovation that creates a separate but interlinked ethereum blockchain. It helps stop nodes from having to validate every transaction in the network. This helps achieve scalability.

Cardano Consensus

ADA is a complete option decentralized blockchain platform developed from scratch (Haskell).

As stated earlier, they are focused on eliminating the technical struggle associated with the first and second generation of Blockchain by improving the whole design model.

Cardano is designed in layers, and it operates with the Ouroboros pos consensus mechanism.

Contrary to how PoW works,  ouroboros's PoS mechanism allows four consensuses achieved by stakeholders' votes. It has an integrated proof of security among its distinctive features, making it the most efficient design model in cryptocurrency.

Innovations of Cardano

The unique thing about Cardano is that it's designed to make the whole network upgradeable.

Cardano is built in layers, and each layer has its function.

Control layers: this is where the functions of the smart contract exist. Different DApps are built here, and it handles and supports their digital identity.

Settlement layers: Homes the native currency, ADA

Design mechanism: designed in Sept 2017, Cardano is built to allow code improvements and simplification of API integration.

In its pupa stage, Cardano introduced another facet called Shelley that included the release of Ouroborus. This innovation aims at achieving the already laid down goal—interoperability. And it featured wallet upgrades, multi signatures, and so on.

Ensuing Shelley, Cardano is bringing three more phases

Phase 3: Focused on smart contract improvement as side-chains.

Phase 4: Improvement in the mode of operation

Phase 5: Focused on Scalability (capacity-on-demand)

Ethereum Pros and Cons

Pros of Ethereum

- Ethereum 2.0

- Most NFTs are built on Ethereum network

- Initiated the whole idea of smart contracts and DApps development

Cons of Ethereum

- Limited scalability

- Network clogging

- Bad governance agreement (resulting in ethereum classic)

- Sustainability problem

Cardano Pros and Cons

Pros of Cardano

- High scalability

- Flexibility—designed in layers

- Network structures: it differentiates smart contracts from accounts

Cons of Cardano

- Smaller DApp operations compare to ethereum

- Prolonged initiation to smart contracts


Ethereum has been making waves in the Blockchain for a few years now, and they are known for consistency paving the way for the actual applications of smart contracts. However, the network is struggling in terms of scalability and other minor functionalities.

On the other hand, Cardano is like the beautiful princess that everybody is attracted to. The network has proven to have sustainability prospects—as many organizations and scientists are partnering with them.

Cardano is still in its early stage, and they seem to have a lot to bring to the table. Ethereum, on the other hand, is a deep and tested blockchain platform that is working on improving its functionality and scalability by introducing Ethereum 2.0.

Both are great platforms with distinctive features.


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