ethereum and Cardano are two popular smart contract platforms. While the latter is peer-reviewed and research-led, ethereum enjoys first-mover advantage and has the highest total value locked (TVL) if decentralized finance (DeFi) is a leading metric.
However, one X user believes that Cardano is ahead of ethereum in features. This position was highlighted following a paper published by ethereum co-founder Vitalik Buterin on November 14.
Is ethereum trying to catch up with Cardano?
Carrying X on the same day, @JaromirTesar, a Cardano supporter, saying Buterin’s article pointed out liquid staking and addressed the unspent transaction output (UTXO) model complete with a solution that the user believes is similar to Hydra.
Hydra is a Layer 2 scaling solution on Cardano that uses state channels, similar to the Lightning Network (LN) architecture. The goal of this solution, like layer 2 scaling options on ethereum like Arbitrum and OP Mainnet, is to increase throughput and reduce transaction fees.
Cardano is anchored on the UTXO system, the same architecture used by bitcoin. However, Input Output Global (IOG), the lead Cardano developer, overlaid smart contracts, enabling the deployment of dapps in a secure and scalable 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 as it allows complex transactions to be processed.
According to the details presented by Buterin in the eth.limo/general/2023/11/14/neoplasma.html” target=”_blank” rel=”noopener nofollow”>paper“Exit games for EVM validiums: the return of Plasma”, Cardano supporters now claim that Buterin appears to be proposing a system that works similarly to Hydra. In this paper, the ethereum co-founder said that the team could build a system that considers the traditional UTXO system to avoid the double spending problem while helping scale the base layer.
With Plasma, Buterin said there will be greater security for platforms looking to scale ethereum while avoiding glitches such as data availability issues 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 take years. However, with the development of ZK-EVM, powered by Polygon and set to feature heavily in its Polygon 2.0 roadmap, the ethereum co-founder believes there is room for “more effective builds to simplify the developer experience and protect the funds” in the coming days.
ethereum prices remain stable at spot rates, trading above the psychological support level of $2,000, looking at the candle arrangement on the daily chart. eth is up 34% from the October 2023 lows but is capped below the 2023 highs at around $2,100.
Featured image from Canva, TradingView chart
