Just as humans have generations, so do cryptocurrencies. Bitcoin falls under the first generation while Cardano is labeled as a third-generation cryptocurrency. The reason for this is that it builds off the successes and failures of the previous two generations. Using Bitcoin and Ethereum as an example, Cardano claims to be more environmentally friendly, faster, cheaper, and more secure than its predecessors.
Cardano often draws comparisons to Ethereum and is sometimes labeled as an “Ethereum killer.” This is because Cardano’s founder, Charles Hoskinson was part of the original Ethereum team and helped build it with its inventor, Vitalik Buterin. However, Hoskinson had more “commercial” goals in mind compared to Vitalik’s humanitarian goals. The two split due to these philosophical differences in 2014 and Hoskinson immediately got to work on Cardano in 2015.
Just like Ethereum, Cardano lets people build decentralized applications and use smart contracts. On top of that, it can handle 257 transactions per second, compared to Ethereum which can only do 15. In the future, Cardano looks to implement another layer to the blockchain called Hydra which could potentially allow it to process 1 million transactions per second. For a frame of reference, Visa currently can handle just 1,700 per second.
Despite Hoskinson’s “money-first” reputation, he has made efforts to improve mankind with Cardano, most notably his partnership with the Ethiopian Minister of Education. In this partnership, Cardano’s blockchain will keep the records of over five million Ethiopian students on the blockchain where it is safe from manipulation and theft. Then, when those students later enter the job market, they’ll have their records and accolades publicly available.
The battle between Ethereum and Cardano may never be decided but it’s certainly a major talking point in crypto circles every day. Thankfully, YouHodler has both options for you.
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