# Comparing Ethereum Rivals: Polkadot and Cardano in 2024
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Ethereum has established itself as the leading platform for developers of decentralized applications, boasting the largest developer community, even more than Bitcoin, due to its focus on technology and development. However, several emerging projects are posing a significant challenge to Ethereum's dominance. In this article, we will delve into a comparison between Cardano and Polkadot, both serious contenders in the blockchain arena.
After years of development, the first phase of Ethereum 2.0 has finally been launched, a major upgrade that has been in the works since 2015. Transitioning core elements of a live system is always more challenging than creating a new one from the ground up, which has led many former Ethereum developers to create their own blockchain solutions.
Cardano's Progress Compared to Ethereum
Cardano (ADA) has emerged as a leading smart contract platform in the cryptocurrency landscape. Founded by Charles Hoskinson, one of Ethereum's co-founders, Cardano aims to provide a robust blockchain solution. Hoskinson left Ethereum in 2014 to establish the IOHK Foundation.
Recently, Cardano made headlines with the introduction of the Shelly upgrade on its mainnet. This upgrade enables staking, similar to Ethereum 2.0, and represents just one part of a multi-phase improvement plan. Cardano's goal is to create a scalable environment for developing smart contracts.
Additionally, Cardano plans to implement an on-chain governance model that allows all ADA holders to participate in decision-making. This strategic approach positions Cardano well for future applications in the financial and organizational sectors, especially since it is built on Haskell, a programming language well-suited for business applications and data analysis.
With the introduction of AgeUSD, Cardano has also launched its first stablecoin.
>> Full review of Cardano
Polkadot's Unique Approach
Gavin Wood, another co-founder of Ethereum, designed the Polkadot whitepaper in 2016 after serving as Chief Technology Officer at the Ethereum Foundation. He perceived limitations in Ethereum's design, which led him to create Polkadot.
Polkadot distinguishes itself through its innovative design and growing community, as noted by crypto analytics firm Messari. According to PolkaProject, over 250 projects, including stablecoins and social platforms, are already being developed on the Polkadot network, which launched in May. This rapid growth is notable given the declining interest in Bitcoin and Ethereum.
Unlike Ethereum, which uses smart contracts to run applications on its blockchain, Polkadot allows developers to create their blockchains, known as "Parachains." These interconnected blockchains can communicate with one another, enabling developers to customize aspects such as transaction fees and confirmation speeds.
Gavin Wood envisions that Polkadot will foster many innovative products that might not thrive in Ethereum's smart contract ecosystem, particularly in areas like blockchain gaming and consortium applications. Polkadot is designed to contribute to a decentralized and anonymous future web, often referred to as “Web 3.0.”
>> Full review of Polkadot
Where to Acquire These Cryptocurrencies
For those new to the cryptocurrency space, I recommend Bitpanda as an excellent crypto brokerage. Bitpanda offers a user-friendly service with diverse features, including savings plans and credit card options, and also allows trading in stocks and precious metals with minimal fees.
For more experienced users seeking lower fees, BitForex is an ideal choice.
Conclusion
The upward trajectories of Cardano and Polkadot continue to capture attention. As established companies like Microstrategy and Square enter the cryptocurrency market, boosting prices, many investors are searching for alternatives to Ethereum. Currently, Cardano ranks as the fifth-largest cryptocurrency by market cap, closely followed by Polkadot in ninth place. A report from Outlier Ventures indicated that Cardano ranks as the second-most developed protocol after Ethereum, while Polkadot has seen a doubling of its monthly active developers since July.
Increasingly, investors view Ethereum's costs as prohibitive, with transaction fees rising, according to Glassnode data. While both Cardano and Polkadot offer competitive advantages, neither has yet surpassed Ethereum. However, with Ethereum 2.0 still years away from full implementation, the landscape could shift rapidly. Ethereum has made significant strides, but competitors like Cardano and Polkadot are carving out their niches. Trust remains a critical factor for investors, an area where Ethereum currently holds an advantage over its rivals.
Update 09.2021: Ethereum Price Target: 35.000 USD
The views expressed in this article are those of the author. All data and figures were sourced as of 27/06/2021. Last updated on 12/11/2021; changes may occur. *Affiliate links
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