Written By: Prajul Jain
In this article, we are going to talk about and compare various smart contract platforms like Ethereum, Solana, and Cardano.
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First developed in 2015 Ethereum is the world’s first and largest smart contract platform. It creates a secure P2P (peer-to-peer) decentralized network allowing users to transact without the need for a centralized authority. It uses smart contracts to be able to do the same.
Smart Contracts: They are nothing but a piece of code or computer program o that automatically executes, controls and documents relevant events and actions according to the terms of a contract or an agreement..
Developers use these smart contracts to build apps and add more functionality to the network. Ethereum is used for everything from decentralised exchanges, NFTs and new age games. $ETH (native token of ethereum) is the second largest cryptocurrency globally, it is also expected to surpass bitcoin and become a leader in this space. However critics argue against it. This is because of two main factors.
- High Carbon Footprint
- Low Transaction speed
Ethereum uses POW (Proof of Work) consensus; this means that each transaction is verified by various other nodes before getting completed. However this process consumes a lot of electricity essentially reducing transaction speed and increasing costs. This is where Solana comes in.
Solana is a next gen smart contract platform that addresses issues. It what people commonly refer to as the “Ethereum killer”. Solana is a highly functional open source project that implements a new, permissionless, and high-speed layer-1 blockchain. It is a newer blockchain designed for speed and scalability. It works using a hybrid model that combines proof-of-history algorithm with a version of proof-of-stake (PoS) that allows it to process over 710,000 transactions per second (TPS) without any scaling solutions needed.
This hybrid consensus is much better than POW (Proof Of Work). It helps:
- Increase transaction speed to upto 50,000 transactions a second
- Improver scalability
- Have lower fees compared to Ethereum
However solana has some downsides too. These include:
- Costlier hardware
- Frequent Server down times
- Fewer Projects
- Lower network stability
Cardano is also a smart contract platform quite similar to solana. Projects like Solana Polkadot and Cardano are referred to as the 3rd generation of blockchain tech and aim to replace ethereum.
Cardano is an open-source project that is based completely on facts and data. It uses peer-reviewed research and pioneering technologies to provide enhanced security and sustainability to the network. Scalability and security are the main USPs (Unique Selling Points) of Cardano. It is a Proof of Stake (PoS) protocol, which is designed to sustain the network’s security while maintaining a high degree of scalability. Cardano also offers the highest degree of decentralization. It offers the following advantages over Ethereum:
- Low Hardware Requirements for miners
- Slightly higher transfer speeds
- Increased decentralization
- Large Storage Community
With little to no downsides. However it faces issues similar to those in ethereum like increased charges.