This is the era of digitalization. Have you wondered if digitalization too had made a heavy impact on the environment? Yes, due to mining, a lot of energy is spent, which is degrading our precious planet. So, can we cut off mining cryptocurrency? No, we cannot do that. But we can focus our vision on some eco-friendly coins produced without putting stress on the ecology.
This blog draws a comparison between the three major cryptocurrencies that are unique in perspective to their creation without mining. Of course, Ethereum is undergoing mining, but it is getting updated to Ethereum 2.0, which highly focus on the Proof of stake mechanism. So, let us get into the article.
There is a lot of difference between these three major cryptocurrencies. But before that we can discuss the similarities between the three cryptocurrencies - Cardano, Ethereum, and Polkadot
Now, let us discuss about the differences
The founder of Polkadot is Gavinwood,who is the founder of another not-for-profit organization Web3 foundation, that overseas the management of DOT coin.
The founder of Cardano is Charles Hoskinson who is also the founder of the company Emurgo, which is the managing organization of the Cardano coin or the ADA coin.
We all know that the founder of Ethereum is Vitalik Buterin. You know what, the above mentioned two founders were part of the Ethereum Foundation as major programming developers in the Ethereum foundation. Gavinwood was the chief architect of Ethereum and Hoskinson was one of the project managers.
The usage of technology plays a unique role in the development of these altcoins. Polkadot and Cardano are similar to the functions of Ethereum but the former two are constructed as Proof of stake coins whereas Ethereum is not a POS coin. But the Ethereum team is working towards converting the coin to the POS mechanism to stake and pool coins that might be possible in the last quarter of 2021.
Another interesting fact is that Polkadot uses a ecosystem of blockchain called the “Parachain” that is connected to the core blockchain known as “ Relay Chain”. This kind of infrastructure allows the polkadot to conduct nearly 1 million transactions per second.
But with respect to the Cardano, all the functionalities are run by the consensus mechanism called the Ouroboros Proof of Stake (POS) that can allow the coin to conduct nearly 100 to 1000 transactions per second.
Etherum encourages staking of coins by allowing the users to stake and become an Ethereum validator. To become an Etherum validator, one should stake at least 32 ETH in the ETH ecosystem. But there are certain risks involved. You can also stake less than 2 ETH in the Ethereum staking platform.
When it comes to Cardano, there are nearly 1500 Cardano validators who stake nearly 70% of the ADA coins in circulation. Also the staking holders can receive the return of nearly 5% per year in ADA if it is transacted through the Yoroi and Daedalus wallets.
Pokadot is currently having more than 300 validators who stake nearly 60% of the DOT coins in circulation. The nomination for the staking can be done using the Pokadot .Js extension that offers the return of nearly 14% of return in DOT.
Ethereum blockchain can manage to handle around 15 transactions per second. With the arrival of Etehreum 2.0, the blockchain can handle around 100,000 transactions per second.
Cardano blockchain can handle around 30,000 transactions per second.
Polkadot blockchain can transact around 1000 transactions per second due to its parachain structure. It is nearly 10 times higher than the tps of the Ethereum blockchain.
As we all know, Cardano and Polkadot blockchain have a consensus proof of stake mechanism. But considering Etehreum, as of now,they run on the Proof of work mechanism. Ethereum 2.0 os highly expected to bring up the Proof of stake for the ethereum blockchain.
All the three cryptocurrencies have their unique capabilities. There are several other functionalities that distinguishes from one another but the above mentioned properties are the most critical distinguishing features.