If you want to ask which encryption project is the most useful and most likely to completely change the way the world operates from games, shopping, banking, etc., the answer is clear, it is Ethereum. Because Ethereum relies on revolutionary smart contracts to provide soil and power for DeFi, NFT and other upsurges.
However, Ethereum is not the only blockchain that supports smart contracts. When people are concerned about whether Ethereum can surpass Bitcoin , Ethereum competitors are also launching a powerful offensive against Ethereum in the field of smart contracts.
After the upgrade of Ethereum London is completed, a large amount of ETH is being burned every day, which greatly alleviates the problem of unlimited total amount. However, the old-fashioned problem has not yet been resolved—gas fees are high, and some complex interactions such as creating or trading NFTs require high on-chain costs. Although Ethereum has more upgrade plans in the future, it is still plagued by high cost and slow speed. In extreme cases, the transaction speed may take several minutes or even up to an hour. This also creates opportunities for faster and lower-cost competitors to counterattack.
Here are a few potential ” ether killers”, let’s take a look at their characteristics.
First of all, it is Cardano (ADA), which ranks third in market value. Its founder Charles Hoskinson comes from the original Ethereum founding team. He founded Cardano two years after the birth of Ethereum. Forkast, a cryptocurrency website, believes that “Cardano is a third-generation blockchain, which means that its advanced technology is trying to solve the problems of the first and second-generation blockchains (ie Bitcoin and Ethereum).”
According to reports, the Cardano project team is cooperating with the Ethiopian Ministry of Education to store the academic records of 5 million students on its blockchain to confirm their academic qualifications, which will help them to further their studies, study or work abroad. In addition, the team will also work to improve Ethiopia’s infrastructure.
Generally, the market’s impression of ADA is that the pledge rate on the chain is high, and the main force is highly controlled. As for its performance, it has not yet been proven. On September 12, Cardano will officially launch a smart contract. After the function goes live, ADA will also begin to face real challenges.
Harmony is a lower market capitalization contender for Ethereum, but it has been gaining momentum recently. According to its official website, “Harmony is a fast open source blockchain. Its main network runs Ethereum applications. The transaction completion time is 2 seconds, and the fee can be reduced by 100 times.” This means that Harmony can run the same applications at a faster speed and lower cost. Harmony is an open platform for user assets, collectibles, identity, and governance. Its security bridge provides cross-chain asset transfer with Ethereum, BSC, and three other public chains.
Currently, 68 applications are running on the Harmony chain, including 135,000 wallet addresses, holding more than 96 million US dollars in assets. In addition, there are more than 2,300 NFT artists on the chain, and their NFT sales exceed $600,000. This is a new ecological public chain that has just emerged, and it may become a dark horse in the public chain track.
Binance Smart Chain (BNB)
BSC is faster than Ethereum and has solved some of the existing problems of Ethereum, such as reducing the cost of network usage. More importantly, BSC has its own trading platform, which provides it with a large user base. In addition, BNB can also be used as a transaction fee to save transaction costs. The platform uses its profits to repurchase and destroy it regularly, which also gives the holders a huge motivation for HODL.
However, these strengths can also become weaknesses. Prior to this, the US Department of Justice and the Internal Revenue Service were investigating possible misconduct in Binance. Although it has not yet been confirmed, this still casts a shadow on its development. Disputes are nothing new to trading platforms. Coinbase has also had disputes, but after paying only $6.5 million in fees, it reached a settlement with the U.S. Commodity Futures Trading Commission.
On the positive side, there is also the fact that BSC has become another option for people to escape the high fees of Ethereum. So far, BSC has successfully attracted the support of existing Ethereum projects, including the social media project Mithril and the aviation safety project Aeron. It also supports many native tokens and equivalent tokens “pegged” on BSC, such as BTC and ETH.
Although BSC solves the problem of high fees and congestion in Ethereum, its high degree of centralization and regulatory risks are the biggest problems it will continue to face.
Solana is faster, lower cost, and has a fully functional smart contract. Solana is promoted by SBF’s capital, which has completely overshadowed CZ recently. Some time ago, Solana successfully released the “DegenerativeApe Academy” series of NFTs. 10,000 Apes NFTs were sold out in 8 minutes. This series of NFTs is the leading force in SolanaNFT sales. The current cumulative sales of 765,000 SOL tokens are valued at approximately $122 million at current prices.
In terms of performance, Solana can process 65,000 transactions per second, which is 4000 times faster than Ethereum, 35 times faster than XRP, 6 times faster than BSC, 3 times faster than Harmony, and 2.5 times faster than Visa. On the other hand, Solana’s per transaction fee may be only about 0.00025 USD.
Of course, in addition to the performance and fee advantages, the driving force behind the capital is the most critical factor in the soaring price of SOL. In June of this year, Solana received a US$314 million investment led by Andreessen Horowitz and Polychain to further advance its technology in the decentralized finance field. The investment took the form of buying SOL tokens instead of the traditional form of stocks, so this is also Become the driving force for these institutional investors to pull the market.
In addition to the above-mentioned public chains, public chains such as AVAX, FTM, XTZ, and ALGO have recently offered various subsidy plans and benefits. Capital is all showing its magic.
Ethereum 2.0 is not expected to be launched until next year, and it may not be until the end of 2021 or early 2022 at the earliest. After the upgrade is completed, the transaction fee on the Ethereum chain may be greatly reduced, and TPS may even reach 100,000+ in theory. The king of the public chain has not left much time for competitors. Therefore, in the next few months, the major competitors are bound to do their best to create market enthusiasm and try to get enough shares in this precious time window. Market share.
It is reported that the old public chain LTC is also preparing to enter the field of smart contracts and NFT. According to the official blog of the Litecoin Foundation on September 9, the Litecoin network will use the open source platform OmniLite to introduce smart contracts, DAO, tokenized assets and NFT functions on the chain.
It can be seen that in the window period when Ethereum 2.0 has not yet been upgraded, the public chain battle will enter a fierce battle for traffic, which will create a lot of opportunities for short-term speculators, and will also bury a lot of funds for chasing high. I hope everyone can Maintain awe of the market and do a good job of risk control.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/the-speed-and-cost-battle-are-ether-killers-on-the-rise/
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