Ethereum (ETH) has been supporting the creation of smart contracts a lot longer than Cardano ADA. In fact, it is known to be the pioneer of smart contracts in the cryptocurrency industry. Ethereum is described as a “decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.”
Cardano ADA, on the other hand, is known to be one of the most interesting crypto projects in the industry. Like Ethereum, it is a platform for smart contracts developments and hosting. Cardano is able to offer scalability as well as security using its layered architecture. In addition to that, it issues a native token referred to as ADA, which users can store, send or receive digital funds. The transactions on Cardano blockchain are secured using using cryptography. The network has a lot of use cases but we will come to that in a bit.
Ether is the official digital token on the Ethereum network. Ether is used to pay for fees on the platform when hosting decentralized applications, it is a medium of exchange and a store of value for the users. The token is backed by the Ethereum blockchain.
Ethereum Smart Contracts
Smart contracts refer to programs that are used to control digital assets on the blockchain, in this case the Ethereum Blockchain. These programs are not, however, unique to the blockchain technology but their utility increase the diversity of the decentralized blockchain. The founder of Ethereum, Vitalik Buterin explains smart contracts with reference to a vending machine.
“You put money in, and candy comes out. A vending machine is a physical device that executes the rules of agreement. But a vending machine can be broken. By digitalizing the concept, cryptography makes these contracts far more secure and powerful,” explains Buterin.
Ethereum platform is specifically built to support the creation of smart contracts. The Ethereum Virtual Machine (EVM) is the “World Computer” used by developers to create these programs. The smart contracts are then hosted/executed on the blockchain using computing power that is sourced from Ethereum nodes.
Cardano Smart Contracts
Cardano ADA is a brainchild of science and philosophical research principles. Charles Hoskinson, one of the founders of the Ethereum project initiated the development of Cardano. Many cryptocurrency experts and enthusiasts say that Cardano is one of the most promising cryptocurrency projects ever developed in the industry. Moreover, it is currently establishing itself as a viable rival for Ethereum ETH.
Recently, the network has launched yet another use case referred to as Marlowe. It is a domain specific language (DSL) that has been tailor made for the execution of financial contracts. IOHK says that DSL resembles an algebraic form of the Haskell but has been improved to encompass executable small-step semantics.
The entrance of Marlowe especially in the financial service industry threatens the dominance of Ethereum smart contracts. It has the ability to replace the common Escrow transactions and related services. Mr. Hoskinson is hoping that the new language will become a better alternative for smart contracts in the industry. Its adoption could eventually outperform and dethrone Ethereum as the leading smart contract platform.