DotBig review: Algorand vs Ethereum vs Cardano — which blockchain is better for investors

These days, many businesses are trying to explore the possibility of digitizing and delivering their services through blockchain technologies. This approach appeared to be quite efficient in terms of solving the most urgent and sophisticated problems in different industries. That’s why more and more companies are getting in touch with blockchain development specialists. Most of such development services focus on the Ethereum Blockchain. However, the fact that this blockchain is the best can be questioned.

Today, there are numerous blockchain platforms that attract not only entrepreneurs but also investors. Different digital assets can run on those platforms. So, investors are willing to explore the best ones. Ethereum is, probably, the most popular blockchain. But this doesn’t mean that other platforms cannot solve certain problems better. Let’s compare Ethereum with two other popular options — Cardano and Algorand blockchain platforms.

Algorand vs Ethereum vs Cardano

A brief introduction to the history of the projects

Before we get down to examining and comparing the advantages and disadvantages of these platforms, we need to understand what these blockchains are.

  1. So, let’s start with Algorand. This is an open-source blockchain protocol that was launched in 2017. Over the course of time, Algorand attracted a lot of investors and developers. Developers were attracted by the speed and simplicity of the protocol. Plus, this network applied Pure Proof of Stake technology, which allows its participants to make a good passive income. Plus, this protocol is quite flexible, as it provides developers with the possibility to build applications leveraging both traditional financial solutions and the most sophisticated DeFi technologies.
  2. As you can guess, similar to Algorand, Cardano is an open-source blockchain. What makes it so popular among users is the possibility of combining assets and creating stake pools. Initially, Cardano was created by members of the Ethereum team to fill the voids caused by the shortcomings of Ethereum. However, today, Cardano is considered one of the most popular blockchains that became popular due to low fees and a peer-reviewed research strategy. Cardano has great prospects to achieve its initial goals and show how the academic approach can prevail.
  3. Blockchain Ethereum is the most respectable network on this list. Ethereum was a pioneer in the technology of smart contracts when it was released in 2013. This made an enormous influence on the industry of cryptocurrencies as it allowed developers to create decentralized solutions for different purposes, which are now used in different sectors. There’s no reason to wonder that Ethereum is the biggest DeFi ecosystem. It received one more dose of popularity after the launch of the ERC-20 protocol. Today, many mainstream crypto coins run on this technology. This list includes such cryptocurrencies as Tether USD (USDT), USD Coin (USDC), Shiba Inu (SHIB), BNB (BNB), etc.

Algorand vs Ethereum

Both Algorand and Ethereum apply the proof-of-stake consensus mechanism. The only difference between these blockchains in this aspect is that Ethereum was initially launched with the proof-of-work model, while Algorand has been running on its current mechanism since the very first day of operation. That is why somebody may consider Algorand a more energy-efficient blockchain platform since its origin mechanism reduces energy consumption.

Algorand is a younger platform, and many experts claim that it’s more scalable than Ethereum. This characteristic makes the platform more resistant to higher transaction throughput. Plus, Algorand is faster. It claims to process around 6,000 transactions, while the current version of the Ethereum processes only 30 transactions per second. However, we shouldn’t underestimate this blockchain because of this. The upcoming Ethereum 2.0 project is expected to process more than 100,000 transactions.

Algorand is a younger platform, and there’s nothing surprising in the fact that this network has a better capacity and more sophisticated features that can appeal to modern DApps developers. Nonetheless, Ethereum is a time-proven ecosystem with better liquidity.

Ethereum vs Cardano

Basically, Ethereum and Cardano share a lot of common functions. However, these are different networks that suit better different purposes. Here are key differences in their functionality you should be aware of:

  • Ethereum has a higher value. For many years, Ethereum has been considered the second-best blockchain in the crypto industry, after Bitcoin. Its native token, Ether (ETH) is also the second-most valuable cryptocurrency. Although Cardano’s market cap has increased a lot over the passing years, it’s still just $13.2 billion, while Ethereum is valued at around $156 billion. Even though Cardano is able to perform more transactions per second, only 100,000 transactions go through it every day, while Ethereum performs over 1 million operations daily.
  • What makes the Cardano blockchain so interesting for investors is that this is a developing platform. Cardano regularly introduces new services, which attracts more users to the ecosystem and increases the surrounding hype. Ethereum was a pioneer in many features and so it has already introduced the majority of planned projects, while many Cardano blockchain projects are still in development.
  • Cardano is better if you want to save money on transactional fees. Although Ethereum fees also tend to be lower than before, Cardano is still cheaper to use. Some transactions might be charged with fees lower than $1.

Which cryptocurrencies are the best to invest in right now?

The easiest way to deal with these blockchains is to invest in their crypto tokens.

The native token of Algorand is traded under the ticker symbol of ALGO. You can invest through the Coinbase crypto exchange. This investment is great for investors with small capital as it’s traded at around $0.3202 per coin. Algorand price predictions are quite optimistic, although we suggest choosing it for long-term trading strategies. According to technical indicators, it will reach the point of $1 in 2022.

Over the passing years, Cardano has proven to be one of the busiest digital assets. Native coins on Cardano blockchain are available on many exchanges under the ADA symbol. In April, Cardano was close to $1 but similar to other cryptocurrencies, it crashed and today you can buy it for around $0.39. It might be the best time to invest in ADA as it’s expected to recover completely by 2024.

Ether, a native coin of the Ethereum blockchain, also suffered the spring crash of the market and dropped to $1,297. Nevertheless, it remains the second biggest cryptocurrency by market capitalization. Ethereum proved its sustainability so ETH is worth investing in. Besides, it’s expected to exceed its all-time high price in 2024. This is because of the awaited launch of Ethereum 2.0 and the fact that the new blockchain tech promises ease Ethereum.

Final word

All three blockchains and their assets have their advantages and disadvantages. You can choose either Algorand with the advanced Algorand blockchain explorer, innovative Cardano, or time-proven Ethereum. Each choice will bring you certain benefits, depending on your needs and goals.

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