COMPARISON OF NATIVE TOKENS ON CARDANO VS. ETHEREUM

#Cardano vs. #Ethereum 

Check out this brand new GBI Management Paper comparing Cardano Native Tokens to the Ethereum environment.

The paper explores not only advantages and disadvantages, but also potential use cases and their implementation. With Andreessen Horowitz new $2.2 billion fund it is inevitable that the global tokenisation movement will be the driver of new business models and opportunities.

Our GBI Germany Hub Lead Amir Feghhi, explains: “Native tokens are embedded in the blockchain protocol, they do not require the necessity of smart contracts, with a result in keeping the transaction costs low which are crucial for the participants and “enthusiasts” of the tokenizing world.”

Abstract

Blockchain can be undoubtedly regarded as a “game changing” technology with an enormous disruption potential in the world of finance and asset management due to its advancements and benefits such as decentralization, transparency, and immutability.

With the rise of Bitcoin in 2008, more and more blockchain platforms have evolved such as Ethereum and Cardano trying to resolve the inefficiencies of Bitcoin and providing a powerful platform to digitize assets via tokens. The Blockchain has found various applications in the global financial ecosystem, and asset tokenization is one of the most notable mentions. Asset management is a very important concern for all organizations, but the existing asset management landscape is plagued with various setbacks and difficulties due to duplicity of documents, limited transparency, and forgery.

The tokenization of assets will leverage the capabilities of blockchain for transforming and easing the physical asset management process. While the basic concept of digitalization is not new, technologies like blockchain add an additional “flavour” as it creates a bridge between real-world assets and their trading, storage, and transfer in the digital world. The tokenization of assets will benefit in higher cost efficiency and leaner trade financing options. Asset tokenization is here, it’s present, and while some digital solutions can simply be adopted by businesses, others require a deeper understanding of the underlying technology. In this regard, Cardano has approached the market by introducing Native Tokens where tokens are already embedded within the platform like crypto tokens.

This management paper aims to evaluate the Cardano blockchain platform and Native Tokens. The paper considers the following questions: what are the benefits of the Cardano blockchain platform and what are Native Tokens? What opportunities does a native token bring and how can businesses make use of it? The paper also compares Cardano’s Native Tokens to Ethereum tokens, outlining their advantages and disadvantages. It also evaluates the user base of the two platforms and why Cardano’s still has a long way to go to oppose Ethereum.

Keywords: blockchain; tokenization; native tokens; Cardano; Ethereum; evaluation; business use cases

About the Author

Amir FeghiAmir Feghhi, based out of Dusseldorf, Germany, is a Senior Advisor in Digital Transformation as well as Founding Member of the Global Blockchain Initiative.

Amir has almost two decades of experience in Information Technology, working in different industry sectors. His major expertise is Customer Relationship Management (CRM), Data Strategy, Data Management and Cloud Solutions.

He has worked at several consultancies as well as startups, leading strategic initiatives and transforming businesses and organizations. Amir holds a Master’s degree in Blockchain Technologies as well as a Master’s degree in Information Systems.