The ever growing competition in the crypto verse is bringing back of investor smiles after several months of dwindling confidence. The competition between Cardano (ADA) and Ethereum (ETH) is not a pricing war but a technological proposition that will see the consumer benefit from better products. So, who is gaining in the market?
Ethereum Market Dominance Limitations; Cardanos’ Gain
To date, no blockchain is 100% flawless and each is trying to outsmart the other based on past limitations and this is a healthy fight. When you mention Ethereum, for the tech savvy what come into their mind is smart contracts an area where the network dominates. These have driven the platforms’ current popularity but things are turning out nasty as these have some flaws and limitations.
The same smart contracts that have propelled Ethereum to the second largest cryptocurrency by market cap seem to be working against it. Many new generation altcoins has rode on the Ethereum ecosystem with more new project coming onboard but due to the smart contract issues and low speeds, most of these projects are seeking a better and low cost hub to build their projects on and that is where Cardano begins to hit the market hard.
Enter Cardano (ADA)
Cardano takes a scientific and philosophical research model which is a Charles Hoskinson’s brainchild who also doubles up as Ethereum co-founder. The coin initial entry into the market was frowned down upon with many crypto verse enthusiasts labeling it a coin with not product and real life use cases.
However, the coin has become one of the most promising in the crypto-sphere. It has gone further to become the largest threat to Ethereum. The introduction of the Marlowe has proved that the platform use case potential is unlimited. The killer application targets the financial sector in executing financial contracts akin to Peyton Jones.
Marlowe is a language that is domain specific and once adopted, it will change how financial contracts are executed and are poised to rub the Ethereum dominance in the sector the wrong way. Marlowe offers a better value proposition to existing escrow services an area where Ethereum with it flows, dominates.
Cardano Taking Advantage of Recent Ethereum Woes
Ethereum has been losing ground and the recent price drop was attributed to the numerous ICOs and other projects cashing out and looking for better platforms where they can launch their startups. The mass movement saw Cardano benefit. This has exposed the smart contract flaws and the rising transaction costs with Cardano being seen as the new safe haven.
However, Hoskinson had warned the market earlier in the year when he posed:
“Why is anybody worthy of their positions in the market cap? Bitcoin is advertised as a payment system and a means of exchange, and then everybody who’s ever tried to use it for that, it’s been a miserable failure. They usually stop taking it, or they find ways to take cash, and through a creative structure like what Bitpay has done. Ethereum claims to be a world computer, but then CryptoKitties breaks it.”
The announcement of Marlowe is not good enough, what is important is its delivery. This is the only way it can be a better fit in the market to challenge what Ethereum has been able to achieve. The behind the Marlowe is not to compete with Ethereum but give the user more choices and a better platform to transact on.
More Expected from Cardano Team
However, it is not only the Marlowe app that is helping Cardano cannibalize the Ethereum market, a new wallet, Icarus is also playing a pivotal role in the ecosystem and the team explains:
“A reference implementation for a lightweight wallet developed by the IOHK…. Icarus is a fully open source code base that will be the first step in a range of open source initiatives to provide developers with a suite of tools for Cardano.”
With the market normalizing, the two competitors are now trading in the green with ADA marginally gaining 1.38% to the dollar and ETH $2.50% to trade at $0.102899 and $293.03 respectively with the ADA low price giving it an upper hand as a value proposition for more adoption.