In the Cryptocurrency world, the concept of Ethereum killers is evolving as the other cryptocurrencies are taking advantage of flaws in Ethereum. Ethereum is the second-largest public Blockchain network and the most well-known decentralized marketplace for financial apps, services, and games. It has the edge over all other altcoins due to its application in NFTs and DeFi. Since it continues to host the bulk of projects, Ethereum has been the undisputed leader in this industry for many years.
To know more about the importance of Ethereum in NFTs and Defi read- Is Ethereum the best blockchain for NFT? & Is Ethereum the best blockchain to build crypto-project with DAO?
Unfortunately, Ethereum has fallen prey to its own success. It suffers from expensive network costs and network congestion until it can finish upgrading to a more scalable, more eco-friendly model, other recent projects called "Ethereum killers" are grabbing the chance provided due to the flaws by offering quicker, more energy-efficient networks.
Ethereum has a lead over other cryptocurrencies and smart contract platforms due to its early introduction. However, there are a few flaws in its technology.
Scalability: With increased network usage, the Proof-of-Work mechanism become outdated and can now only process 13 transactions per second.
Gas Fees: To use the processing capacity of this enormous ecosystem, users must pay transaction or gas costs, which are always larger when transaction speeds are slow.
Energy consumption: Ethereum consumes more energy than the entire nation does due to its Proof-of-Work mechanism.
Interoperability: It prohibits other blockchain users from engaging with the Ethereum environment unless prior permission has been granted.
An Ethereum killer is a cryptocurrency that has the potential to surpass Ethereum in the future, thus "killing" it in terms of adoption or popularity. They are alternative open-source blockchains that aim to address Ethereum's present drawbacks, namely its insanely high gas fees and limited transaction speed.
Even while Ethereum intends to address its issues through several updates, like Ethereum 2.0 its implementation has not yet been finished. By offering speedier transactions and lower fees, Ethereum-killers have benefited from this delay and gained the attention of cryptocurrency consumers.
The phrase "Ethereum killers" first appeared in 2016–2017 when alternatives to Ethereum, including Cardano, started to emerge. More projects, including Tezos, Solana, Fantom, Polkadot, Binance Smart Chain, and Avalanche, emerged as rivals to Ethereum in the next months and years.
Let’s take a look at some of the Ethereum killers that are now receiving the most attention in the market.
Solana employs the proof of stake consensus process, with an additional layer known as proof of history constructed on top. Users on the network can become validators to check transactions due to the proof-of-stake method. Proof of history enables the network to keep track of transactions and organize them more quickly. Solana has seen a rapid adoption rate since its launch in 2020.
Cardano was developed by Charles Hoskinson, one of Ethereum's co-founders. Its development has followed a research-intensive methodology, which calls for rigorous testing and peer review before each stage is put into action. Cardano is now launching its support for smart contracts. This cryptographic technology is more scalable and resilient. Cardano is a potential Ethereum substitute as it is more eco-friendly.
Polkadot is another cryptocurrency hailed as an Ethereum competitor. It aims to resolve some of Ethereum's cost and scalability problems. However, Polkadot provides more interoperability since it makes it possible for blockchains to efficiently interact. This technique makes it simpler for developers to transition to Polkadot's platform. Investors in DOT essentially trade on technology rather than particularly on the currency.
Tezos, a blockchain with smart contract functionality that can be used to issue new digital currencies and build decentralized apps, or dApps, is a newcomer to the scene. The native token of Tezos is called XTZ. Several notable projects have been developed on Tezos, including those in the fashion, music, gaming, and art sectors. One of the first networks to employ the proof-of-stake (PoS) consensus algorithm was Tezos.
Avalanche is a group of three bulky killers rather than a lone murderer preparing to spring a trap on Ethereum. It is a blockchain made up of the X, P, and C chains in technical terms. Together, the chains—which manage token generation, smart contracts, and proof-of-stake validation—generally do the same task as Ethereum; it's another blockchain for smart contracts, that is quicker and less expensive.
Fantom uses a DAG, or Directed Acyclic Graph, a proof-of-stake version. Despite having some similarities to a distributed ledger, the technology is not a regular blockchain. A cheaper, quicker, and more scalable option for transactions and data processing is provided by the sequencing of data components. It is more energy-efficient, opening the door for sustainability over the long run. Throughout 2021 and the beginning of 2022, the decentralized financial industry has experienced remarkable development in the Fantom ecosystem. Additionally, because Fantom is EVM-compatible, it is simple for Ethereum developers to move their programs to a new network.
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Ethereum, one of the smart contract blockchains, continues to have a special place in Web 3 veterans' hearts and has a good chance of becoming widely adopted. Now, Ethereum is upgrading to Ethereum 2.0 blockchain which would make it more competitive versus other protocols. Recently, the Co-founder of Ethereum addresses detractors of PoS.
However, both investors and advisers should remain knowledgeable about more recent smart contract blockchains that provide creative fixes to Ethereum's flaws. Everyone will be searching for the ideal infrastructure to employ to create the future of Web 3 as the demand for new Dapps and DeFi protocols rises.