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Ethereum vs. Solana vs. Cardano: will ETH stay at the top?



The Ethereum course performed well this month. At the same time, the Ethereum transaction fees continue to rise, making the network unattractive. At the moment, even a simple ETH transaction still costs around $ 10.


However, Solana and Cardano offer significantly cheaper and faster transaction fees compared to Ethereum . Vitalik Buterin , the founder of the ETH network, wants to fix the problem with transaction fees with the ETH 2.0 upgrade , which is due to appear in 2022. However, should the upgrade fail or be delayed unnecessarily long, Altcoins such as Cardano or the Solana Coin could actually prevail. But why are the transaction fees on the ETH network so high and how are they related to the Ethereum course ?


Why Solana and Cardano could outperform Ethereum

Right now, both Solana and Cardano are the faster blockchains. While the Ethereum network can currently process around 15 transactions per second , Solana 50,000 per second and Cardano 250 . With the new ETH 2.0 upgrade, however, the number of transactions per second on the ETH network should increase to 100,000. If the upgrade is successful, ETH would again be in the lead on this point.



In addition, the transaction costs on Solana or Cardano are much cheaper. A transaction on Solana currently costs just 0.0025 USD. However, the fees can fluctuate somewhat. With the Cardano network it is 0.25 ADA (0.50 USD with a Cardano rate of 2 USD).


Why are the ETH transaction costs so high and problematic?

Let's take a look at how the cost of an ETH transaction is currently calculated. There is an example calculation for the fees of a transaction on Ethereum.org . The gas units (21,000) are a fixed value. The base fees (basic fees 100 Gwei = 0.00000010 ETH) are the minimum fees and can even be higher with higher network load. The tip is optional. The more tip, the faster the transactions will be processed.



“The calculation of the total transaction fee works as follows: Gas units (limit) * (basic fee + tip).


Let's say Jordan has to pay Taylor 1 ETH. For the transaction, the gas limit is 21,000 units and the basic fee is 100 Gwei. Jordan tips 10 Gwei.


With the above formula this results in 21,000 * (100 + 10) = 2,310,000 Gwei or 0.00231 ETH. "




That is (at an Ethereum exchange rate of 4000 USD) around 9.24 USD or about 8 euros for a single transaction (!). Even if we leave out the tip, an ETH transaction is still considerably more expensive than a Solana transaction (0.00025 USD vs. almost 10 USD = 40,000 times as much!) Or a Cardano transaction. In addition, more complex smart contracts sometimes require several transactions at ETH.


There is also another problem: the more the Ethereum price rises, the more expensive the transaction costs become . The Solana course or the Cardano course , on the other hand, can continue to rise without the transaction fees skyrocketing.


Cardano founder criticizes Ethereum 2.0 - upgrade crucial for ETH future

Should Vitalik Buterin fail with the ETH 2.0 upgrade or should it drag on, more and more projects could switch to cheaper and faster alternatives. That is why Cardano , the Solana Coin and other projects such as Avalanche have been called “Ethereum killers” . Charles Hoskinson , the founder of Cardano, even believes that the ETH 2.0 upgrade could be the end of Ethereum .


Whether we will see a merger of the ETH network with coins such as ADA or the Solana Coin, a successful or unsuccessful ETH 2.0 upgrade, remains to be speculation. At the moment, the ETH is still the most successful altcoin on the market. Vitalik Buterin should definitely solve the problem with the high transaction fees so that Ethereum remains attractive.


Do you think the Solana Coin or Cardano Ethereum will outperform? Tell us what you think on Twitter!

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