Cardano vs. Ethereum 2.0: Key Differences and Which Is Better?

Ethereum 2.0 remains a single-tier solution designed to manage smart contracts and dApps, while Cardano uses a dual-layer architecture that also includes smart contracts for transactions.

Cardano and Ethereum are opposite blockchains, but they continue to be compared. The reason is that Cardano founder Charles Hoskinson was also instrumental in the birth of Ethereum. Another reason is that both blockchains thrive on their smart contracts capabilities and the dApp ecosystem, which creates a huge digital marketplace for blockchain-based financial products and services.

In this article, we will introduce you to both networks, give their differences and similarities, and tell you which is better.

Key Takeaways

Cardano and Ethereum are two of the most popular cryptocurrencies on the market. Both blockchain networks were created to provide a vast ecosystem of decentralized applications (dApps).

Cardano is newer than Ethereum, which was created in 2015, even though ETH2 started in 2021. This means that Ethereum has a head start regarding technology adoption and user base. However, Cardano is designed to be more scalable and efficient than Ethereum.

Although Cardano has a lower transaction fee than Ethereum, Ethereum is currently more widely accepted than Cardano.

What Is the Difference Between Cardano and Ethereum?

|Features |ADA |ETH2 | |:———– |:———– |:———– | |Release| 2017| 2021| |Market Capitalization|$10.71 billion|$139.4 billion| |Creators|Jeremy Wood and Charles Hoskinson| Vitalik Buterin| |Max Supply|45 billion| Unavailable| |DApps|Around 1,000|2,970| Other differences between ADA and ETH include the following:

Gas Fees

The gas fee is a transaction fee paid by users for a transaction; they are paid to validators for validating transactions and adding new blocks to the blockchain network. The gas fee in the Cardano blockchain is 0.17 ADA, roughly equivalent to $0.91, while Ethereum fees are more and can get higher if the network is congested.

Transaction Speed

Currently, the Ethereum blockchain can handle no more than 20 transactions per second (TPS). However, the performance of the Cardano blockchain platform is currently around 250 TPS.

What Do ADA and ETH Have in Common?

FeatureADA & ETH2
Consensus MechanismIn both cases, the proof-of-stake mechanism allows users to lock their assets to become validators.
Smart ContractsSmart contracts are used for transactions involving both coins. Smart contracts are necessary for trusted transactions on the blockchain because data moves more easily between parties through these contracts. Participants can set the rules by which they will conduct transactions and what to expect during the transaction process.
Energy ConsumptionThey both use the PoS mechanism, which is less energy intensive than the PoW mechanism.

What Is ETH?

Ether (ETH) is a cryptocurrency built on the Ethereum network. Users can transact, earn interest on their assets through staking, use or store non-fungible tokens (NFTs), create dApps, and more.

Buy ETH on Guarda Wallet

What Is ADA?

Cardano is a blockchain technology considered a ‘third generation’ blockchain. Developed to solve the massive problems typically accompanying the first generation, like Bitcoin and the second generation of the Ethereum generation, Cardano is proving to be a constant source of innovation.

Cardano’s native cryptocurrency allows holders to transact and stake for passive income. And even validators are rewarded ADA in the form of transaction fees for validating a block.

Buy ADA on Guarda Wallet

Which Crypto Is Right for You?

There is competition between these two blockchains, as Cardano is trying to challenge and achieve something by different means than Ethereum. As a result, many newcomers pay attention to which blockchain is better. But the idea of a blockchain in which one wins seems outdated.

Ethereum and Cardano have their benefits and drawbacks in the crypto space.

Where to Buy, Sell, or Exchange Cardano and Ethereum Tokens?

You can do these transactions using Guarda Wallet. It is accessible through a web browser/desktop, and when you are on the go, you can access the wallet on your mobile device. Guarda also gives you a rich selection of Cryptocurrencies to choose from.

The service is an easy-to-use, navigable solution for beginners and experienced crypto investors. Creating your own cryptocurrency wallet on Guarda takes a couple of minutes.


Ether has undergone tremendous changes since its inception and is still considered one of the most powerful cryptocurrencies.

On the other hand, Cardano is one of the safest digital assets thanks to its thoughtful development. ADA has had a downward trend in the past. Still, it has since become relatively cheap, making it a great investment option for investors with the budget to buy penny crypto.

Create ADA or ETH Wallets on Guarda


1. Is Cardano better than Ethereum?

Cardano claims to be a possible alternative to Ethereum. Both platforms serve similar functionalities, including smart contracts, which aim to create an interconnected and decentralized system. Ethereum’s value is higher. In recent years, Ethereum has held second place in value after Bitcoin. Cardano, which has grown significantly since its launch, is also considered a good investment.

2. Can Cardano replace Ethereum?

Cardano does not have a tangible superiority over Ethereum that could be expressed in numbers. Additionally, Ethereum is currently the most popular choice for smart contracts and dApps.

3. Will Ethereum 2.0 affect Cardano?

Ethereum 2.0 and Cardano will retain equal levels of application. The Ethereum 2.0 concept will continue to be single-tiered and designed to manage smart contracts and decentralized applications. On the other hand, Cardano will use a two-tiered structure that will include smart contracts functionality and a currency that enables financial transactions.

4. Is ADA the same as ETH?

Cardano and Ethereum are smart contract platforms that creators can use to develop dApps. However, they have significant generational differences and market capitalization.

5. Which token is the most secure: ETH or ADA?

After Ethereum partially moved to the PoS in 2021 and fully in 2022, both blockchain systems used this mechanism to verify transactions. This process ensures that both platforms are sufficiently robust and identical.

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