Second only to Bitcoin, Ethereum (ETH) is regarded as one of the most reputable cryptocurrencies. Financial games, apps, and services can all be found on this well-known decentralized marketplace. It's a smart contract platform built on top of the blockchain. Digital aid classes like NFTs can be transferred as a result of this functionality , which allows for more complex financial transactions .
Anyone interested in NFTs, decentralized finance or stablecoin investing should consider Ethereum as a viable option. An increasing number of people are using Ethereum, which means that long-term investments can be made in cryptocurrency.
Even as the world's second-largest crypto, Ethereum has its weakness and this gives opportunity to other cryptocurrencies to compete.
A lot of activities are done on the Ethereum network and as more users come on its platform, challenges increase. These challenges include gas fees, inefficient energy usage, and delayed processing.
Ethereum's shortcomings could eventually weaken its scalability and its power to build a strong crypto landscape . This can stop new users from investing and push them toward its competitors. In order to decide which choice of cryptocurrencies to invest in, this guide will help to learn about the top Ethereum competitors, can Ethereum be replaced, and the future of Ethereum.
Top Ethereum Competitors
In the race to unseat Ethereum as the second-largest cryptocurrency, there are only a few contenders. For this reason, they are also known as the " Ethereum Killers ," because they were created to address Ethereum's flaws. The Ethereum blockchain is plagued by a variety of issues that these competitors can address.
Ethereum's competitors want to be seen as more energy-efficient, less expensive, and more functional than Ethereum.
There are a growing number of Ethereum killers that are stealing Ethereum's market portion in the cryptosphere. Cardano, Solana, Polkadot, and Bitcoin Smart Chain are among Ethereum's most common rivals.
As measured by market total assets, Cardano's native coin, ADA, is the fourth top cryptocurrency. There are approximately 32.7 billion ADAs in accumulation and a supply of more than 45 billion ADAs. As a 3rd blockchain technology, it was established in 2017 with the goal of providing solutions for Bitcoin and Ethereum, the first and second millennials of blockchains, respectively.
As a public, open source, decentralized ecosystem for building dApps but not yet running smart contracts, Cardano was initially launched and a wide range of smart contracts and NFTs could be supported by the Alonzo upgrade in the year 2021.
SundaeSwap, Cardano's first decentralized finance (DeFi) exchange, has had a modest impact on the cryptocurrency's performance. Cardano co-founder Charles Hoskinson was also a co-founder of Ethereum. As a result of this, when talking about Ethereum competitors, Cardano is the first name that springs to mind.
Cordano's proof-of-stake agreement mechanism is expected to be exceptionally long-lasting and environmentally friendly from the start. The Cordano cryptocurrency token, ADA, has a fixed coin supply, which means that no matter how the ecosystem performs, demand for ADA will always increase.
Using Cardano, the connectivity can process hundreds of operations per second (TPS) by separating the settlement operations from the estimation layer. As with Ethereum, the average transaction fee is set at $ 0.02 . To complete each transfer, it takes ten minutes and fifteen third-party authorizations.
A cryptocurrency called SOL, which is Solana's own native medium of exchange, is currently ranked the 14th by total assets. On-chain, Solana has about 250 operational projects in total .
It is the 4th cryptocurrency on the block chain . Its connectivity boasts an economic breakthrough by maintaining the highest levels of decentralization and safety. Solana network eight-core inventions are accountable for this record-breaking throughput. With this, its main network operation is at beta phase. This is the only thing stopping Solana from gaining ascendancy.
While Ethereum charges about $ 6.498 TPS, Solana's average cost is just between $ 0.00020- $ 0.00025 TPS , which is 3,800 times faster. Speed and transaction costs are critical for blockchain technology's real-world use cases and adoption in the near future .
Polkadot joins many chains together to increase safety and scalability. At first, it was ideationalize as Web 3.0 in its hierarchy. The Polkadot platform's native cryptocurrency is DOT which is at the eighth position. Currently, the market cap is about $ 25.72 billion .
Polkadot is noted for its "interoperability" characteristic . Its technology joins multiple blockchains into a single network, allowing them to share data without jeopardizing their security. Parachain was a word developed to allow polkadot crypto users to build their own blockchain.
Ethereum strategy scalability and administration is in the hands of Polkadot. Interoperability is also critical for the future of Web 3, in which products, currency, and services will migrate across a decentralized digital environment, as many hope. Robust interoperability also opens the door to the cross-chain alliance, which could lead to more protocol alliances.
Bitcoin Smart Chain
Bitcoin smart chain is a network on blockchain that facilitates the construction of increased-performance of other smart contract-based applications and decentralized apps (dApps) by allowing cross-chain compatibility with the native Binance Chain. The Bitcoin smart chain incorporates the BSC smart contract features with BSC high transaction throughput.
BSC is a blockchain developed by the prominent digital aid trade, Binance in 2019. It is another different crypto striving against Ethereum in the space of smart contracts. It offers reasonable and quicker operations than Ethereum. BSC is about 3 times faster also with an average network of 3.0s block time.
Bitcoin Smart Chain is also known as an ethereum killer based on the transaction fees. BSC's acceptance is evidenced by the fact that the network has already surpassed Ethereum in daily transactions. Bitcoin Smart Chain handled 3.2 million transactions on July 11, 2021 , nearly surpassing the Ethereum network's daily transaction rate of 1.1 million.
QTUM, a mixed cryptocurrency platform that integrates the finest features of Ethereum and Bitcoin . It is one of the most potential rivals for Ethereum's crown. QTUM's blockchain smart contract ability is provided via a more resilient x86 Virtual Machine. This is all thanks to an Abstract Accounting Layer, which is similar to bitcoin core.
Bitcoin's Lightning Network and SegWit are essentially off-layer scaling solutions, along with the ability to create and host smart contracts.
QTUM has become a popular choice among developers, thanks to the robust set of security features designed to determine the kind of serious coding violations that could turn into a multimillion-dollar issue. Second-layer storage, despite its decentralization consequences, is appreciated by them because dependable business applications are their primary concern, which is understandable.
Tezos, a new smart contract-able blockchain that can be used to generate decentralized applications and new digital assets. It is rapidly making its way onto the scene and its native currency is called XTZ. It has a market cap of $ 3.6 billion currently .
Video games, music, fashion and the arts have all seen major Tezos-based initiatives get off the ground. A proof-of-stake (PoS) agreement means was initially used by Tezos, making it one of the pioneering blockchains. Additionally, it includes a unique set of administration features. This means it is possible to participate in the administration of the network with a risk of at least 8,000 tokens . In addition to its dApp security, Tezos is famous.
Can Ethereum Competitors Replace It?
Regardless of the circumstances, the basis of DeFi is still Ethereum. It is on this that many of these noteworthy projects were built since the onset of cryptocurrency fortune. Almost all the dApps are running on this system, precisely 79.23%. No wonder these Ethereum killers are intending for a bigger fraction of the smart contract and decentralized finance market.
It is difficult for these Ethereum competitors to compete or replace it because of the advantage of being a first and broad adoption. This is keeping the system at a lead in the industry of smart contracts.
The total value held in the decentralized finance industry makes Ethereum worthy of consideration. Ethereum accounts for almost 75% of total value locked which is US $ 77 billion out of US $ 103.6 billion which is the total net value locked. These Ethereum killers are not even a bit close to this value.
One of the most significant improvements to Ethereum 2.0 is at stake, and the London hard fork is one of the most critical smart contract and decentralized finance markets are uncertain to fall out of Ethereum's grasp as long as the improvement goes as intended. ADA, Polkadot, and Bitcoin smart chain may be able to gain further market interest if Ethereum 2.0 is impeded any longer, reducing the authority of the Ethereum market.
The Future of Ethereum
In years to come, specialists believe Ethereum will be the most popular blockchain platform for developers, businesses, and users compared to other blockchains.
According to Trakulhoon, "Ethereum is still going to be the commentator of the entire decentralized tier because there is still so much faith in the blockchain".
Ethereum is currently undergoing planned advancement which might make a multi-chain useless and Ethereum will become the main chain when it comes to the transaction phase. This planned advancement is called Ethereum 2.0.
Ethereum 2.0 is a batch of updates that will change Ethereum to be a more effective consensus-building called (POS) proof of stake that makes Ethereum consume less energy of about 99.96% .
Ethereum is still a favorite among Web 3 veterans and has a good chance of becoming widely adopted. Newer smart contract blockchains offer creative solutions to Ethereum's shortcomings, and therefore investors should be aware of them. The development of new dapps and DeFi protocols will drive the search for the right infrastructure to leverage on to develop the future of Web 3.