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This User Is Convinced Ethereum Playing Catch Up With Cardano: Here’s Why

Bitcoinist

Bitcoin News / Bitcoinist 106 Views

Ethereum and Cardano are two popular smart contract platforms. While the latter is peer-reviewed and led by research, Ethereum enjoys a first-mover advantage and has the largest total value locked (TVL) if decentralized finance (DeFi) is a leading metric.

However, one user on X thinks Cardano is ahead of Ethereum on features. This position was highlighted following a paper released by Ethereum’s co-founder, Vitalik Buterin, on November 14.

Is Ethereum Playing Catch Up With Cardano?

Taking to X on the same day, @JaromirTesar, a Cardano supporter, said Buterin’s paper pointed out liquid staking and touched on the Unspent Transaction Output (UTXO) model complete with a solution that the user thinks is similar to Hydra.

UTXO model proposed by Vitalik Buterin | Source: @JaromirTesar on X

Hydra is a layer-2 scaling solution in Cardano that uses state channels, similar to the Lightning Network (LN) architecture. The goal of this solution, like in layer-2 scaling options in Ethereum like Arbitrum and OP Mainnet, is to increase throughput and lower transaction fees.

Cardano is anchored on the UTXO system, the same architecture used by Bitcoin. However, Input Output Global (IOG), the lead developer of Cardano, overlaid smart contracts, allowing for the deployment of dapps in a scalable, secure environment.

To achieve this, Cardano uses the Extended UTXO (EUTXO) model, a data structure that allows the blockchain to track transactions more securely and efficiently. There is also a level of flexibility with the EUTXO system since it provides for processing complex transactions.

According to the details laid out by Buterin in the paper, “Exit games for EVM validiums: the return of Plasma,” Cardano supporters now claim Buterin appears to be proposing a system that works similarly to Hydra. Herein, the Ethereum co-founder said the team could build a system that considers the traditional UTXO system to prevent the double-spending problem while also helping scale the base layer.

With Plasma, Buterin said there will be enhanced security for platforms looking to scale Ethereum while bypassing lapses like the data availability problems in roll-ups. 

There is Room For Innovation; ETH Stabilizes Above $2,000

The speed at which this proposal will be implemented remains to be seen and could be years. However, with the development of ZK-EVMs, pushed by Polygon and set to feature heavily in their Polygon 2.0 roadmap, the Ethereum co-founder thinks there is room for “more effective constructions to simplify the developer experience and protect users’ funds” in the days ahead.

Ethereum prices remain stable at spot rates, trading above the $2,000 psychological support level, looking at the candlestick arrangement in the daily chart. ETH is up 34% from October 2023 lows but capped below 2023 highs at around $2,100.

Ethereum price trending upward on the daily chart | Source: ETHUSDT on Binance, TradingView
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