ADA vs. Ethereum: Smart Contracts Comparison

Smart contracts have changed many aspects of the traditional financial system and other industries. In this case, Cardano (ADA) and Ethereum have emerged as key players. Many are curious whether to purchase ADA or ETH, depending on the platform they choose.

When it comes to performance, both platforms have distinct features that set them apart. In this article, you will learn about the performance of ADA and Ethereum so that you can choose what platform to use and whether to seek USDT to ADA or USDT to ETH on crypto exchanges.

Scalability And Transaction Throughput

When it comes to smart contracts, the Ethereum platform was the pioneer. Ethereum has a well-established ecosystem and a sizable developer community. However, scalability has been an issue for some time.

Luckily, Ethereum decided to switch from proof of work to a proof of stake consensus mechanism. Before this solution, Cardano seemed like a more scalable platform since it was based on PoS initially. 

Cardano employs Ouroboros, a proof-of-stake (PoS) consensus method that aims for fast throughput and low transaction costs. In terms of transaction processing capacity, Cardano’s approach to scalability puts it ahead of Ethereum, despite the latter switching to PoS.

Costs

Transaction fees on the Ethereum platform are often higher, especially during periods of heavy network congestion. As a result, it may be less cost-effective for some use cases, notably those involving microtransactions or high-frequency trading. 

Cardano benefits from its PoS algorithm, which leads to cheaper transaction fees in general. Cardano’s lower fees make it an appealing option for users and developers searching for cost-effective smart contract execution. For some people, it may be more convenient to focus on ADA cryptocurrency trading due to its faster transactions. Thus, people use crypto exchanges like WhiteBIT to purchase ADA. 

Environmental Impact

Before autumn 2022, Ethereum used to operate on the proof of work algorithm. However, after evaluating the risks, Ethereum switched to proof of stake. It was a positive decision since more people now view Ethereum as a sustainable blockchain. 

Cardano initially was a proof-of-stake blockchain, so these two blockchains have a lower impact on the environment compared to other cryptocurrencies. Thus, if you were considering using a platform that has a lower negative impact on the environment, both options are safe. 

You can choose a suitable platform depending on your budget and the transaction time needed.