Cardano will replace Ethereum - or not? (Part 1)
Invest in Cardano (ADA) or still ETH?
Cardano has made itself heard in recent weeks not only through the enormous rise in the share price, but also through several updates. Many see Cardano as the Ethereum Killer, which is supposed to outshine the largest and most famous smart contract platform. But it is not as simple as some people think. Who is better in Marketing?
Cardano's been in a hot spot these past few weeks. The ADA share price has risen nearly 600% from March of this year to today. Many are jumping on the staking train and see it as a good opportunity to generate a passive income. The hype was further fuelled by the announcement of the Shelley Update and other news. Among other things, that Cardano should be 100x more decentralized than Bitcoin. Marketing is in full swing and many already see ADA as the next Ethereum Killer.
But what does it actually take to replace Ethereum? Some would say that a better technology would be enough to outshine the competition in the long run. But for decentralized networks with a native coin, this is only the tip of the iceberg. Technology is by no means everything in crypto-room. Trust, track record, degree of decentralization, network effects and documentation play a much more important role here. This is where Ethereum is ahead by a long way.
Network effect, track record and documentation of ETH by a wide margin
Ethereum has been in existence since 2015, and over the past 5 years the platform has gained a lot of experience and solved identified problems. The degree of decentralization is not as high as in Bitcoin but still much higher than in other projects. The network effect also speaks for itself, especially for developers who want to develop on a public block chain. The documentation is now massive, making it much easier to get started with Ethereum than on other platforms.
There is also a massive difference in terms of the number of different wallets. Almost every wallet supports Ethereum but not every wallet supports Cardano. At first glance this may not seem important, but a developer certainly doesn't want to worry about the proper storage of crypto currencies anymore, but rather take care of his own things. The gap in all the areas listed is getting bigger every day and there is hardly a chance that this will change in the future.