ETH vs ADA vs DOT: a comparison of networks from former Ethereum founding members
Ethereum (ETH), Cardano (ADA), and Polkadot (DOT) are listed as the top three decentralized networks that feature smart contracts and rank within the top 10 cryptocurrencies with highest market cap on Coinmarketcap.
The founders of these three networks are notably former co-founding members of Ethereum, making the premise increasingly interesting to see which network would be the winner of this supposed competition.
Ethereum, the second largest cryptocurrency, was developed by Vitalik Buterin. Ethereum has been undoubtedly gaining higher reliability than other networks by developers who are into Decentralized Applications (dApps) with Smart Contract.
Most of the popular tokens were created on the Ethereum network like Uniswap (UNI), Chainlink (LINK) or Maker (MKR), which all specifically yield privilege in their own way and the Bitkub exchange also offers these coin to allow investors to explore the world of investment further.
Ethereum network uses the Proof-of-Work (PoW) consensus algorithm as a mechanism behind their blockchain functions, while also planning to migrate into the Proof-of-Stake (PoS) system in ETH 2.0 to yield better sustainability, security, and scalability. As the number of users in the network has been dramatically increased, Gas Fees are also inevitably heading in the same direction, becoming the network's main issue. It can be compared with the cost of living in the urban areas, which will always be higher than remote locations.
Cardano was established in 2015 by Charles Hoskinson, a former Ethereum co-founder team member, which has the same goal as Ethereum, but designed Cardno to mainly focus on use cases in the financial and banking industries. Cardano has claimed itself to be a 3rd generation blockchain, which turns all the errors in the past as solutions for the present.
An interesting point to note is the more affordable gas fee found on the network, along with a scalability function to fit in any circumstances needed by users. Cardano is trying to launch an ERC-20 converter tool so users can move their token’s database from Ethereum to Cardano.
Moreover, Cardano has been utilizing their blockchain technology for educational purposes in Ethiopia to support the evaluation process and to collect students' databases, now in use for 5 millions people from it previous 3.5 thousand throughout the entire country.
Polkadot was invented in 2020 by Gavin Wood, another former Ethereum co-founding member, which carries the same goal as Ethereum and Cardano, but its technologies are what make Polkadot attractive. Technologies called Relay Chain, Parachains, and Bridges were designed to connect different blockchain networks together into one massive Internet of Blockchain.
Gavin Wood believes that Polkadot’s technology can increase security as the more coins staked in the network, the stronger the connections between blockchain networks become.
During the first phase of the network, Polkadot has been using Proof-of-Authority (PoA) as its consensus mechanism, which has various organizations within the Web3 Foundation as listed validators for every transaction on its blockchain.
Afterwards, Polkadot fully updated into the Nominated Proof of Stake (NPoS) algorithm to allow DOT holders to become validators or nominators to inspect and secure its network.