Are Ethereum And Cardano On Their Way To Overthrow Bitcoin With Their Smart Contract Upgrade
One of the most interesting debates in the current time when it comes to cryptocurrency is about which one of the top 10 will survive the next 10 years. Apart from Bitcoin, the two other strong cryptos are Ethereum and Cardano. Both of them are looking to upgrade the level of global finance using their smart contract operated blockchains. The two cryptocurrencies are in for a big update in their services. By the end of this year, we will be able to see which one among Ethereum and Cardano will lift the crown of cryptocurrencies.
Shared Story of Ethereum and Cardano
Ethereum was created in 2013 by a Russian-Canadian developer, Vitalik Buterin who was the main one among five others. Charles Hoskinson, the founder of Cardano was also in this team of Ethereum builders, which makes the two cryptocurrencies a sort of crypto cousins. Another interesting fact about the founding fathers of these cryptocurrencies is that Gavin Wood, the founder of Polkadot was also one among them. Both Ethereum and Cardano run on the Proof of Stake protocol. The smart contract functionality for Ethereum 2.0 is set to launch in Q4 of this year or Q1 of next year. Cardano is set to launch in August of this year. This upgrade is huge for Cardano as after six years of building it is finally coming to bear fruits. Ethereum that has unlimited supply can adopt 100 thousand transactions per second while Cardano with a supply of 45B can do 2.5 million. The EIP 559 is launching this month for Ethereum that will make Ethereum deflationary as it will begin to burn gas fees and thus impact the supply.
So far Bitcoin is the only coin that has been placed on the pedestal of Market Capitalisation Charts. Being a first-generation blockchain, Bitcoin is slightly showing symptoms of old age. In addition to its inability to scale, Bitcoin has been marked with quite a few limitations. Many cryptocurrencies have their motive to replace Bitcoin by solving the limitations and none have come closer as much as Ethereum has. Although it is built on second-generation blockchain and thus is more advanced than Bitcoin, Ethereum has its fair share of limitations as well. The developers of Ethereum are now behind the process of upgrading the underlying blockchain. This new version will be called Ethereum 2.0. Since March 2019, Ethereum price surged to it’s all time high of $4,196.63.
One of the changes that will be brought in the new upgrade is the introduction of proof-of-stake instead of proof-of-work. Proof-of-work is highly complex and inefficient that affects the ease of use of Ethereum. With the proof-of-stake, an algorithm will choose the nodes of translation and the higher the amount of currency owned by the owner of the noide, the higher is the chance of selection. The new version will also include sharding which is an initiative to improve Ethereum’s scalability. From now on, the new data that is added need not undergo verification by every single participant. Sharding will break the data verification into sets of nodes and also include parallel processing.
Cardano’s way to bull
ADA has been doing quite well in its smart contract era. Three weeks ago, the developers of Cardano had tweeted that they have released the second repetition of Alonzo Blue to the testnet. Cardano price has been stuck in the resistance at $1.40 with solid support for above $1.00. Things have been going pretty well for Cardano this month. Grayscale, one of the leading crypto funds that has around $30 billion in assets under management, announced that it has added Cardano to the digital large capital fund after rebalancing.
Grayscale now includes ADA as their third-largest holding which is around 46%. Cardano is also in its way for a major institutional upscaling because of which this cryptocurrency is now in the eyes of the whales. Experts have been advising crypto holders to lock up their ADAs. Cardano’s retail outlook has also been looking good. eToro revealed that ADA surpassed Bitcoin as the most held cryptocurrency by its clients. ADA also launched on Nexo which offers an impressive 12% APY to its 1.5 million global users. These recent incidents are an example of how Cardano’s holders, stakers and enthusiasts are continuing to grow.
I have been into Cryptocurrency since early 2017. I am a very experienced investor, and have made a lot of money from investing in Bitcoin and other digital currencies. I am also a very popular author, and my work has been featured on sites like Forbes, Huffington Post, Business Insider, and more. I am currently working on a book about Cryptocurrency investing, which will be released later this year. In my free time, I write articles and blog posts about the industry for my followers.