Cardano’s founder, Charles Hoskinson, has highlighted recently how much cheaper Cardano is than Ethereum when it comes to transaction fees.
The cryptocurrency tycoon cited a tweet in which he said that the cost of a 56-asset transaction on the Cardano network was under $0.14, a sum that Ethereum could never equal.
He suggests in his tweet that Cardano’s blockchain architecture’s special features—such as native assets, extended UTXO (Eutxo), and its smart contract language Plutus—may be the reason for the cheaper prices.
The term “Extended UTXO” describes Cardano’s fundamental ledger concept. Meanwhile, the platform’s smart contract language, Plutus, is what drives decentralised apps, or DApps. These components are made to guarantee safe and economical transactions, which is essential to a blockchain network’s general usefulness and uptake.
One of the main differences between Cardano and Ethereum is the reduced transaction cost. Ethereum has been criticised for having high transaction costs, especially when there is network congestion. Known as the “Japanese Ethereum,” Cardano seeks to provide a blockchain that is more inexpensive, easily accessible, and permissionless.
Hoskinson’s remarks are consistent with his earlier critiques of Ethereum, in which he specifically questioned the blockchain’s staking system, which he had previously assisted in creating.
He has a history of contrasting the strategies used by the two platforms, arguing that Cardano is superior than Ethereum because of the better architecture of its proof-of-stake protocol.
Hoskinson has also called Ethereum “a skip fire” and implied that it would become outdated in a number of scathing comments.
