1 Cryptocurrency That Could Eclipse Ethereum

Despite the recent turmoil that has rocked the crypto market, over the past five years, Ethereum (ETH 10.26%) generated an astronomical return of 2,560%. You would be hard-pressed to find a financial asset with a better return than this over the same period.

The second most valuable cryptocurrency in the world has become a popular arena for the development of decentralized applications (dApps), including decentralized finance non-fungible protocols and tokens. And as of May 11, the market value of Ethereum stood at $271 billion.

But a booming cryptocurrency known as gimbal (ADA 24.23%) gain territory. let’s see how it’s fair could outperform Ethereum.

Cardano has a lot of credibility

Cardano was founded in 2015 by former Ethereum co-founder Charles Hoskinson, making it a credible venture thanks to the technical expertise he gained from previously starting what is now the second-largest network most valuable crypto. Since its public launch in 2017, Ada, the native Cardano token, has climbed 2,400% in value. And it currently has a market capitalization of $19 billion, good for seventh place in the crypto ranking.

What makes Cardano unique is its research-based, peer-reviewed approach to development. When new features are implemented, they go through a rigorous process of analysis and review by a team of computer scientists and cryptographers from around the world.

Moreover, the development of Cardano takes place in five phases, each focusing on a key attribute. They are: foundation, decentralization, smart contracts, scalability and governance. Authoritative bodies, like the Cardano Foundation, IOHK, and EMURGO, help lead the adoption, engineering, and commercialization of the network, respectively.

Image source: Getty Images.

Cardano solves scalability

Ethereum is currently working on transitioning from a proof of work (PoW), in which miners must use huge amounts of computing power to solve complex mathematical puzzles in order to validate transactions on the blockchain, at a proof of stake mechanism; Cardano is already there.

Its Ouroboros consensus mechanism requires Ada owners to stake their holdings in order to approve ledger transactions. It requires much less power than PoW and it is much faster. Currently, Cardano can process 250 transactions per second (TPS), more than Ethereum’s 14.

But after the full implementation of the current development phase, Basho, Cardano will theoretically be able to handle 1 million TPS. Indeed, its new algorithm, called Ouroboros Hydra, will add sidechains (which run parallel to the mainnet) that can distribute the system load on the Cardano blockchain. It should be finished in 2022.

Cardano is building real use cases

As Cardano continues to solve the crypto scalability problem, its potential to create real-world use cases skyrockets. With faster processing times, the network becomes much more attractive for developers who want to build on Cardano. As of May 10, there were nearly 3,000 different dApps on the Ethereum blockchain. But with the expected Basho integration, Cardano will become a top destination for developers.

Even in a more tangible sense, Cardano can have an impact. Blockchain can be used to identify counterfeit drugs in the healthcare sector, to track supply chains in the agricultural industry, and for onboarding customers in financial services. Although these are small projects today, they demonstrate how Cardano is spearheading the impact of crypto in our daily lives.

Cardano is a promising blockchain that has wonderful characteristics supporting its continued progression. As it progresses and grows, its future returns could certainly exceed those of Ethereum.

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1 Cryptocurrency That Could Eclipse Ethereum

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