Ethereum vs Cardano: Transaction Economics

Dominant economic security: ~$50B+ in staked ETH securing the network. This matters for DeFi protocols (Uniswap, Aave) and NFT marketplaces (Blur, OpenSea) where finality and security are non-negotiable, despite higher fees.

EIP-1559 fee burning creates a predictable base fee, reducing bid volatility. This matters for enterprise dApps and institutional users who require stable, estimable transaction costs for budgeting and automation.

Fixed fee formula (a + b * size) results in consistently low costs, typically $0.10 - $0.50. This matters for microtransactions, loyalty programs, and emerging markets where cost predictability is more critical than absolute speed.

Ouroboros PoS prioritizes decentralization and low energy use, capping throughput at ~250 TPS. This matters for sustainable projects and academic/government pilots where environmental and formal verification credentials are key, accepting lower throughput.

High-value DeFi, NFTs, and institutional settlement.

• Use Case: Launching a permissionless money market or a blue-chip NFT collection.
• Why: Unmatched liquidity ($50B+ TVL), robust tooling (Hardhat, Foundry), and maximal security for high-stakes transactions.

Cost-sensitive, high-assurance, or sustainability-focused dApps.

• Use Case: Building a micro-payment system, a verifiable supply chain ledger, or a government identity pilot.
• Why: Predictable sub-dollar fees, peer-reviewed research (Hydra, Mithril), and a strong focus on formal methods.

Specific advantage: Processes ~15-20 TPS on mainnet, scaling to 1000s via L2s like Arbitrum and Optimism. This matters for high-frequency DeFi protocols (Uniswap, Aave) that require deep, liquid markets and composability. Base fees adjust dynamically via EIP-1559, burning ETH to offset inflation.

Specific disadvantage: Mainnet base fees are highly volatile, ranging from $2 to over $200 during congestion. This matters for mass-market dApps or microtransactions, where cost predictability is critical. While L2s reduce costs (~$0.01-$0.10), they add complexity and fragmentation for users.

Specific advantage: Fees are calculated via a deterministic formula: a * size + b, where a=0.000044 ADA/byte and b=0.155381 ADA. This matters for enterprise applications and stablecoin transfers requiring precise, auditable operational costs. Average transaction cost is ~0.17 ADA ($0.10).

Specific disadvantage: Processes ~7 TPS on mainnet, with Hydra scaling solution still in early stages. This matters for high-volume NFT mints or DEX arbitrage where latency and throughput are paramount. Lower network activity results in less fee revenue and burned value compared to Ethereum.

Specific advantage: ~30 TPS (Layer 1) scaling to 100,000+ TPS via rollups (Arbitrum, Optimism). This matters for high-frequency DeFi protocols like Uniswap and Aave, where transaction ordering and atomic composability are critical.

Specific advantage: EIP-1559 introduces base fees burned and priority tips. This matters for time-sensitive transactions (e.g., NFT mints, liquidations) where users can pay to expedite inclusion, though it leads to volatile costs during congestion.

Specific advantage: Fee formula is a * size + b, where a=0.000044 ADA and b=0.155381 ADA. A typical simple transaction costs ~0.17 ADA ($0.10). This matters for microtransactions and budget-sensitive dApps, providing cost certainty unlike auction-based models.

Specific advantage: Extended UTXO model enables parallel transaction processing and predictable resource costs before submission. This matters for batch operations and financial applications requiring exact fee forecasting, eliminating failed transaction costs from gas estimation errors.

Specific advantage: $50B+ DeFi TVL and dominant tooling (Hardhat, Foundry, MetaMask). This matters for teams needing robust infrastructure, extensive liquidity, and established standards (ERC-20, ERC-721) to minimize integration risk and development time.

Specific advantage: Layer 2 solution Hydra aims for 1,000,000 TPS per head. This matters for future-proofing applications requiring massive scale (e.g., gaming, IoT micropayments), though it's still in early stages compared to Ethereum's live rollup ecosystem.