In a recent tweet, Charles Hoskinson, the founder of Cardano (ADA), highlighted the financial advantage of Cardano over Ethereum (ETH) regarding transaction costs.
On August 1, Hoskinson claimed a transaction of 56 assets on the Cardano (ADA) network cost just $0.14, a fee he says, could never be matched by Ethereum (ETH). He explained the lower costs may be attributed to the unique features of Cardano’s blockchain architecture including extended UTXO (Eutxo), native assets, and its smart contract language Plutus.
It's almost as if eutxo, native assets, and Plutus are a good idea or something? https://t.co/PEnKgQgcpV
— Charles Hoskinson (@IOHK_Charles) August 1, 2023
Cardano is Superior to Ethereum, Says Hoskinson
Extended UTXO refers to the underlying ledger model of the ADA network. Cardano’s EUTXO combines and matures Bitcoin’s (BTC) security and Ethereum’s (ETH) programmability. As per Hoskinson, this model is vastly superior to the account-based model used by other blockchains because it ensures enhanced security, interoperability, and scalability.
On the other hand, Plutus is the platform’s smart contract language, which powers decentralized applications (DApps). It is a secure, full-featured programming environment based on Haskell, a top functional programming language. As a matter of fact, the security advantages that it provides make sure there is an easier and more robust way to check the correctness of smart contracts.
The ADA founder reiterated these elements are designed to ensure secure and cost-efficient transactions, creating a more comprehensive and sustainable network than other blockchain platforms. He noted the lower transaction cost is a major point of contention between ADA and ETH.
The Ethereum network is particularly infamous for high gas fees. Many users have expressed frustration with the lofty fees associated with using Ethereum (ETH), making it difficult to justify using the platform for smaller transactions.
How Does ADA Beats ETH in terms of Staking?
This is not the first time the Cardano Founder has denounced Ethereum. Previously, Hoskinson had criticized Ethereum’s network by calling it overrated and outlining a lack of vital qualities. More recently, he also explained why ADA is superior to ETH in terms of staking.
Cardano is pretty special. It's almost like a lot of people thought about how to build an excellent staking protocol years ago and made it happen pic.twitter.com/SydlMTYyy1
— Charles Hoskinson (@IOHK_Charles) April 3, 2023
Furthermore, in April 2023, Hoskinson took to Twitter to reveal the Cardano (ADA) network had significantly more unique staking wallets than Ethereum (ETH). The data provided by Hoskinson showed that the number of unique users staking on Cardano was nearly 1.23 million as compared to just 88,400 on the Ethereum chain.
In the recent past, Cardano makers have put in formidable efforts to bolster network adoption as well as bring in several upgrades to improve efficiency. On July 30, ADA devs, launched a long-anticipated upgrade, “Mithril,” a stake-based signature protocol, to enhance the speed and efficiency of node syncing times on the mainnet, raming security and transaction processing timelines.
