When it comes to blockchain technology, you will find no shortage of platforms to choose from for your projects. Out of all of them, Ethereum is usually the first one to come to mind when talking about blockchain. This popularity is not without good reason. It has profited off of many decentralized finance (DeFi) projects being built on it, making it a valuable platform. Moreover, it has become the backbone of the non-fungible token (NFT) market.
Its reign as the big name in blockchain technology continues, but there is a chance it could wane. Another blockchain platform, Cardano, has been making waves of its own. So much so that many believe it could be a formidable rival for Ethereum.
Who is this new challenger?
On its official website, Cardano boasts that it is:
“…a blockchain platform for changemakers, innovators, and visionaries, with the tools and technologies required to create possibility for the many, as well as the few…”
Cardano is a cryptocurrency network and an open-source project. Its main objective is to run a public blockchain platform specifically for smart contracts. Its internal cryptocurrency is ADA and it is the only coin with – as they put it – a “scientific philosophy.” On top of that, its approach draws purely from research. This basically means that its open-source blockchain experiences a rigorous peer-review process by various scientists and programmers.
According to deVere Group CEO and founder, Nigel Green, Cardano’s price increased significantly during the last few months. To be exact, its growth was up 600% since the start of the year. In doing so, ADA momentarily became the third-largest cryptocurrency by market capitalization. To rank closely behind Bitcoin and Ethereum is an impressive feat.
He further elaborates on Cardano’s milestone:
“But now Cardano has come of age by becoming fully decentralized – meaning its parent company has handed control of the blockchain over to the community – we can expect it to attract more investors which will, of course, drive its price on an upward trajectory.”
The staunchest Cardano supporters believe that the network could go on to displace Ethereum. If for no other reason than its high-speed technology and a transaction setup that is free from fees.
During the previous year, Ethereum’s value would soar to new heights with the arrival of more high-profile clients. On top of that, Ethereum acts as the backbone of the non-fungible token marketplace. The mania surrounding NFT this year would result in Ethereum’s price boosting even further.
That is not all. Ethereum is generating a profit from notable DeFi projects whose original construction was on its blockchain. With that in mind, Ethereum is rather expensive to use and its transaction times tend to lag. This is where Cardano shines because it intends to beat Ethereum on both these aspects. And this is all thanks to its lightweight design.
Not too long ago, Cardano installed a major update by the name of “Mary.” This update takes one step closer to completely emulating Ethereum’s platform. Mary is a hard fork that will transition the Cardano ledger. This also modifies its capabilities from holding ADA on its blockchain to permitting the creation and exchange of numerous tokens. On top of this, it will allow the system to support stablecoins and permit the creation of NFTs by users.
Why it could take the throne
Cardano boasts a remarkable lineage and a long-term vision for both its cryptocurrency and its blockchain. The blockchain’s goal since the beginning is to expand beyond coins into a control layer. One that will provide additional services to the cryptocurrency ecosystem.
Green believes that Cardano could be an imposing challenger to Ethereum. The main reason is that it is useful not just because of its currency, but also because of its blockchain. This tech comes in handy for the construction of smart contracts, protocols and decentralized applications (DApps). Furthermore, it is supposedly more scalable than Ethereum.
“It will also pose a challenge to the all-mighty Bitcoin. This is because those who invest in digital assets already or are planning to do so, know that one of the secrets of successful investing is diversification.”
With that in mind, these investors – and many others – will be looking to diversify their cryptocurrencies, too. This in turn will likely eat into Bitcoin’s market share.