Why is Cardano called Ethereum killer what is special about it? Easy explanation of how and why Cardano is going to take Ethereum’s place is given here.
26 December 2022 is going on while writing this blog post about Cardano. I have just checked the current price of Cardanois $0.2598 and the current ethereum price is $1220.09 at coinmarketcap. As you can see there is a huge difference between the prices of both and it seems ethereum is clearly winning the battle and Cardano stands nowhere. Then why I am writing this post about Cardano and why experts believe that in the upcoming years the Cardano is going to beat Ethereum. Let’s understand the concept step by step.
What is Cardano
Cardano is providing proof of stake blockchain platform to the users and its goal is to allow changemakers and innovators to bring positive global change. Cardano was founded way back in 2017 and it was named after 16th century Italian polymath Gerolamo Cardano. Cardano Is native to ADA tokens and Charles Hoskinson.
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Why investors are investing in Cardano
Interesting thing is that Hoskinson is also the cofounder of Ethereum network and here the story begins. Ethereum is already a successful and established network but having some drawbacks such as high gas fees and low output. Apart from technology entrepreneur Hoskinson is also a mathematician and various investors are investing in Cardano only because Hoskinson is connected to it.
It’s not wrong, investors might seeing the success of Ethereum network because today in cryptocurrency world Ethereum is the largest blockchain network that offers various opportunities including trading, swapping, transferring coins from one exchange to another exchange.
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What actually makes Cardano unique is it is one of the biggest blockchain network using proof-of-stake mechanism very easily and intelligent investors are investing in Cardano due to this mechanism.
Ethereum is also used widely on the NFT platform. Here you have to pay high gas fees to secure your self made NFT’s forever. Watching it closely lot of talented artists are not able to place their valuable NFT’s because they have to pay huge gas fees while placing their art for sale. For your kind information NFT’s are sold at NFT marketplaces such as Open Sea and Rarible.
Why Cardano is called Ethereum killer in easy words
Due to high gas fees a lot more people who want to trade are not doing the trading because they can’t afford it. High gas fees is problem for ethereum but opportunity for other network such as cardano, solana, bittorent. I would tell you not only cardano is into but also some other networks such as bittorrent is also in the que. They know very well about this drawback of ethereum and working on it.
According to BitTorrent they will provide the cheapest gas fees to the consumers for trading and swapping purposes. However, at the moment Cardano is far ahead from BitTorrent. By seeing this we can say competitions are good because if there is no competition big networks like Ethereum will keep their gas fees higher. After getting competition from other networks Ethereum will be forced to reduce the gas fees.
Proof of stake vs Proof of work
Cardano is one of the biggest blockchain using the proof of stake mechanism successfully and this makes it unique from other blockchains. Important thing to understand is that proof of stake mechanism is less energy intensive then proof-of-work algorithm. After seeing the potential in the proof of stake technology the larger blockchain network Ethereum is also going to upgrade its technology into POS (proof of stake). Due to proof of stake mechanism gas fees will automatically reduced because less consumption of energy.