As Ethereum continually delayed Ethereum 2.0, the upstart competitor Cardano is getting ready to go live
According to First Mover, CoinDesk’s daily markets newsletter, Cardano and Ethereum seem to be competing. And once Ethereum is still hesitant to launch Ethereum 2.0, it is highly likely that Cardano will be ready to go into operation.
Cardano PoS Blockchain might be a challenge for Ethereum network
Cardano is building a massive network of decentralized computing that millions of people, businesses, and governments can one day use to run financial applications from anywhere in the world.
Since the beginning of the year, ADA prices have increased by more than 120%, surpassing the annual 80% increase of ETH and 31% of Bitcoin. The new catalyst for ADA’s price hike appears to be Cardano’s progress towards an essential upgrade of the Shelley network that is expected to launch next month.
The rollout for Cardano’s Shelley update | Source: Charles Hoskinson
The Shelley upgrade aims to make Cardano 50 to 100 times more decentralized than other large blockchain networks using Proof-of-Stake blockchain that is seen as more efficient than the electricity-hungry Proof-of-Work system used by the Bitcoin.
According to some analysts, upgrading Shelley is not only an opportunity for Cardano to exaggerate its capabilities but also a practical, useful application.
Moreover, investors can get 10% a year from staking ADA. Also, according to Charles Hoskinson, founder of Cardano and co-founder of Ethereum, full staking service via the Shelley upgrade would be available by August 18.
Individual staking rewards calculator for ADA | Source: Cardano
According to Michael Gord, CEO of GDA Capital, Cardano has very high potential.
He said:
“I’m personally short on ADA currently. I think the Shelley upgrade will be another case of buying the rumor, sell the news. In the race to build a computing platform for applications designed to run on decentralized networks, effectively the only blockchain that is challenging ether as the potential No. 1 operating layer.”
However, in many ways, Cardano’s network is still far behind Ethereum
The first factor to claim Cardano is still inferior to Ethereum is that the network has no plans to develop smart contracts – the key to building decentralized applications.
According to DeFi Pulse, 19 of the top 20 dApps are using the Ethereum network. Moreover, among open source software developers, Ethereum attracts much more attention. Only about 28 people are active on IOHK GitHub, far less than 61 people working on open source repositories on Ethereum’s GitHub.
Second, Cardano registers little more than a blip compared with the Ethereum network, already used as the backbone for dollar-linked stablecoins like Tether and USDC, as well as early-generation decentralized exchanges and lending platforms.
The third factor is that both projects have professional leaders. Even so, Ethereum still has Vitalik Buterin – which is more influential. Hoskinson, meanwhile, always tries to attract interest in Cardano.
Traders seem more willing than ever to take a view on Cardano as a cryptocurrency. And gains this year in the ADA token may represent a bet on the ability of the network’s leader to execute the project roadmap.
Read more:
- The Testnet For Cardano’s Staking Era Will Be Open To All Stake Pool Operators On June 9
- Charles Hoskinson Described Participating In Cryptocurrency As An Inherently Political Act