The competition is intensifying between Ethereum and emerging blockchains, offering better functionality at a lower cost. Cardano is one such viable alternative to Ethereum. Recently, the Cardano founder, Charles Hoskinson, commented that the first-mover advantage that Ethereum had wouldn’t be a threat for new players.
In the video clip released on YouTube, Hoskinson claimed that the year went by had demonstrated the emergence of alternative blockchain platforms, with only 31% of the new decentralized applications were developed on the Ethereum platform. Dismissing that Ethereum can convert its first-mover advantage to monopoly, Hoskinson said that early entry into the blockchain segment would not lead to any sustainable advantage for Ethereum.
What lends credence to the claims of Hoskinson is the unprecedented growth in the valuation of the Cardano in recent weeks. The surge in Cardano prices from $0.44 to $0.88 in two weeks is a vindication of its growing popularity. It can significantly help the digital currency to solidify its position in the market. The total capitalization of Cardano is now pegged at more than $28 billion, making it a credible player in the segment.
Another fact that adds to the credibility of Cardano is its high staking percentage. According to recent reports, 72% of ADA coins are staked on the Cardano blockchain, making it one of the industry’s most decentralized blockchain networks. Cardano has achieved the top slot by overtaking Polkadot, which has around 60.61% of its tokens staked on the network. With Cardano zooming past, Polkadot has plunged to the second position. All these facts will help Cardano march ahead with confidence to further enhance its usage and adoption among users.
Ethereum network is plagued by high cost and scalability problems, although it indicates that the network is coming up with the upgrade to sort out these niggles soon in the future. To make considerable improvements, Ethereum will release an improved version of its blockchain, called Ethereum 2.0 Beacon Chain. The proposal for the same has been shared by the Ethereum Co-Founder, Vitalik Buterin, which means that very soon, users and developers will have access to the improved functionality and possibly lower cost structure on the new version of Ethereum blockchain. The new iteration will strengthen Ethereum’s current positioning in the market and make it hard for competitors to lure its loyal users and developers.
It will be interesting to witness how much improvement the team of Ethereum brings to the table and whether that will be good enough to help the blockchain network to continue its dominance among emerging competitors in the decentralized space. In terms of the development of decentralized applications, Cardano is still to catch up with the rivals. It has made some significant changes of late that have made the platform attractive for the developers. However, more work is needed if the platform wants to present itself as a credible alternative to the Ethereum blockchain.