News - Cardano (ADA) - Is it still a potential "Ethereum killer"?

By Mike Hesp

Cardano (ADA) - Is it still a potential "Ethereum killer"?

The Cardano blockchain and ADA are often portrayed by fans as the "Ethereum killer." What can the top 10 currency do?

Cardano is a blockchain project with its own cryptocurrency ADA. From the beginning, the project has relied on the proof-of-stake mechanism to achieve consensus in the network.

The development of the project dates back to Charles Hoskinson. A shrewd developer who was previously involved in the development of Ethereum. In the (further) development of Cardano, he and his team attach great importance to a scientific approach. In this way, they want to distinguish themselves from other crypto projects.

How does Cardano (ADA) work?

Cardano works with the Proof of Stake algorithm to reach consensus. Unlike the Proof of Work (PoW) mechanism used by cryptocurrencies such as Bitcoin, the Proof of Stake (PoS) mechanism works on a "strike" basis, or the amount of coins an individual commits to help the network validate new blocks on the blockchain. This distinctive feature provides a different approach to consensus building within blockchain technology. Initially, this PoS mechanism provided a competitive advantage for Cardano over Ethereum, which at the time still relied on energy-intensive PoW.

However, Ethereum has since made the switch to PoS, removing the advantage previously held by Cardano. Despite this development, Cardano has so far never been able to compete with Ethereum for second place. Choosing between PoW and PoS depends on individual preferences and circumstances, as both algorithms have their own set of advantages and disadvantages. The choice between these mechanisms can vary based on factors such as security, scalability, energy efficiency and network decentralization.

Impressive: the ADA price trend

Since its launch in 2017, the ADA coin has risen steeply. From its starting price of just under US$0.02 in September 2017, the price of Cardano quickly took flight and reached ten times its value as early as December. Over the course of the ensuing altcoin rally, the ADA price rose to a proud US$1.13 in January 2018. Those who got in at the beginning were able to rake in hefty profits.

But that was not the end of the story. Four years after its launch, on Sept. 2, 2021, ADA reached its all-time high of US$3.09. Relative to today's price, one might assume: There is still room for improvement.

Can you still call Cardano a future Ethereum killer?

As to whether you can still call Cardano a future Ethereum killer, there is no immediate answer. Ultimately, it remains speculation, but based on the following points, you could say that Cardano still has a chance to flip Ethereum in the future:

  • Despite being far from its all-time high, Cardano has proven to be a stable top 10 currency;

  • Cardano continues to evolve and has a clear roadmap;

  • Cardano still has a strong community.

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