Cardano’s founder Charles Hoskinson has reignited the debate on blockchain cost efficiency, underscoring Cardano’s financial advantage over Ethereum in transaction costs
Charles Hoskinson, the founder of Cardano, has recently emphasized the financial advantage of Cardano over Ethereum when it comes to transaction costs.
The crypto mogul pointed to a tweet claiming a transaction of 56 assets on the Cardano network cost just $0.14, a fee he claims could never be matched by Ethereum.
In his tweet, he hints that the lower costs may be attributed to the unique features of Cardano’s blockchain architecture including extended UTXO (Eutxo), native assets, and its smart contract language Plutus.
Extended UTXO refers to the underlying ledger model of Cardano. Meanwhile, Plutus is the platform’s smart contract language, which powers decentralized applications (DApps). These elements are designed to ensure secure and cost-efficient transactions, which is key to the overall utility and adoption of a blockchain network.
The lower transaction cost is a major point of contention between Cardano and Ethereum, the latter of which has faced criticism for its high transaction fees, particularly during periods of network congestion. Cardano, which is known as the “Japanese Ethereum,” is aiming to offer a more accessible, affordable, and permissionless blockchain.
Hoskinson’s comments align with his previous criticisms of Ethereum, where he notably challenged the staking mechanism of the blockchain he once helped to create.
He has been known to contrast the approaches of the two platforms, suggesting that Cardano’s proof-of-stake protocol is designed more effectively, contributing to its superiority over Ethereum.
In a series of critical remarks, Hoskinson has also described Ethereum as “a dumpster fire” and suggested that it could become obsolete.