#bitcoin

How does Cardano differ from Bitcoin and Etherium?

Cardano and Bitcoin bear some fundamental differences in terms of design, purpose, and usability.

Cardano uses a proof-of-stake consensus mechanism, while Bitcoin relies on proof of work to mine new coins and add blocks to the chain. Functionally, Bitcoin is designed to transfer digital currency in a decentralized, peer-to-peer fashion. Cardano, on the other hand, supports a much broader range of functions. Cardano can handle smart contracts, custom tokens, and decentralized applications (DApps).

Another key difference between Cardano and Bitcoin is the energy utilization. Bitcoin's proof-of-work design consumes huge amounts of energy, to the tune of 204.50 Terawatts/hour. Cardano is far more environmentally sustainable. Charles Hoskinson estimates that Cardano’s electricity consumption is about 0.01% of Bitcoin’s.

How does Cardano differ from Ethereum?

Cardano differs from Ethereum in fundamental ways. Cardano is designed as a proof-of-stake blockchain.Cardano and Ethereum feature different staking systems. Cardano users delegatetheir ada to stake pools run by SPOs, while Ethereum does not natively support delegation. 

Finally, staking on Cardano is more convenient than on Ethereum as there is no locking (users can withdraw ada at any time), there is no minimum stake requirement, rewards get automatically assigned, and the custody always remains with an ada holder.

Also, Cardano supports custom tokens natively, without the need for smart contracts. Ethereum does support custom tokens also, but requires smart contracts, which adds a layer of complexity and the possibility of errors. In Cardano, the ledger handles all token functionality.

Another fundamental difference is the accounting

In terms of non-fungible tokens (NFTs), Algorand users can create NFTs using a system built into the protocol, without the need for smart contracts. Cardano users can create NFTs in a variety of ways.