What is an “Ethereum Killer”?
The term "Ethereum killer" refers to a blockchain that competes directly with Ethereum. These competing chains will have many of the same features as Ethereum, but tend to use different technologies and claim to improve on Ethereum's shortcomings. Often, an Ethereum killer has faster transaction speeds and lower gas fees, an area Ethereum struggled with when demand skyrocketed in late 2021.
All of these competing blockchains use smart contract technology, first introduced in Ethereum. Smart contracts are coded programs that perform predefined functions when certain conditions are met. Because smart contracts run in code, they enable trusted transactionsDeFi(decentralized financing).
Like their main competitors, the “Ethereum killers” focus on incentivizing Web3 developers to build dApps on their blockchains. Besides DeFi dApps likedecentralized exchanges (DEX), Ethereum competitors have many other Web3 projects like NFT markets andplay to win games.
Examples of Ethereum competitors
Ethereum has inspired many developers to create competing smart contract blockchains. However, few ETH killers have become leaders in the cryptocurrency market. Below are some of the most notable non-Ethereum smart contract chains:
Solana (SOUND)
SolanaIt is one of the newest Tier 1 blockchains and has generated a lot of excitement from both institutional and retail investors. Solana, released in 2020, is a smart contract blockchain that uses a unique consensus algorithm called Proof of History (PoH). This complex system allows the Solana blockchain to create unique "timestamps" that verify transactions at extremely high speeds.
In fact, one of Solana's key selling points was its fast confirmation time. With around 65,000 transactions per second (TPS), Solana is one of the fastest cryptocurrencies. Their blockchain is also eco-friendly and doesn't cost much.
While Solana has seen widespread adoption since its inception, some in the crypto space have expressed concerns about its centralization. Solana has fewer nodes than Ethereum and is tied to many venture capitalists and centralized cryptocurrency exchanges (CEXs) like FTX.
Solana has also experienced dozens of network outages and multi-million dollar attacks since its inception. For example, hackers used a vulnerability in the Solana-based Slope wallet to extract approximately $4.5 millioncryptographic billboardsin 2022. Critics argue that Solana's "act fast and break things" approach may have compromised the security of the network.
Cardano (ADA)
Developed by former Ethereum developer Charles Hoskinson, Cardano is a smart contract blockchain that aCertificate of Participation(PoS) consensus mechanism. Although the Cardano blockchain was officially launched in 2017, it is still technically evolving.
Unlike Solana, the Cardano team deliberately took a slow and steady approach when building their blockchain. Everything in the Cardano ecosystem has to go through multiple peer reviews to confirm its safety and effectiveness. Cardano also has partnerships with research centers such as the Tokyo Institute of Technology and the University of Wyoming.
In addition to its methodical development program, Cardano is known for its connections to high-level government institutions. For example, Cardano has partnered with the Ethiopian government to deploy blockchain technology in the African country’s education system. Charles Hoskinson has also visited Washington, DC several times to discuss the potential of blockchain technology.
The Cardano blockchain uses a cryptocurrency called ADA to pay for transactions and reward validators. ADA is typically among the top 10 cryptocurrencies by market cap and is now available on most centralized cryptocurrency exchanges (CEXs).
Polka Dot (POINT)
Like Cardano, Polkadot is a smart contract blockchain created by a former Ethereum developer, Dr. Gavin Wood. The British computer scientist proposed Polkadot in 2017 and the blockchain was introduced in 2020. DOT is Polkadot's native cryptocurrency and can be used to pay transaction fees, vote, or participate in the chain's PoS consensus mechanism.
The Polkadot network has a complex architecture that includes a main relay chain and multiple "para-chains" used to build dApp projects. Polkadot also hosts an auction system to determine which projects can place their dApps on parachains.
However, Polkadot does not qualify as a separate crypto ecosystem. Like crypto projects like Cosmos, Polkadot is committed to improving communication between blockchains (aka "blockchain interoperability"). Instead of choosing between Polkadot and Ethereum, it should be easy for Web3 users to interact with countless dApps via the Polkadot ecosystem.
Avalanche (AVAX)
Avalanche is another smart contract blockchain that uses a PoS. Developed at Cornell University, the Avalanche blockchain launched in 2020 and offers fast transaction speeds with minimal gas fees. Brooklyn-based Ava Labs is overseeing the development of Avalanche.
One way Avalanche stands out from the competition is its three-tier blockchain structure. Developers can access various features with Avalanche's P-Chain, X-Chain or C-Chain.
P-Chain helps people launch their blockchains in the Avalanche ecosystem, while X-Chain focuses on creating Avalanche-based tokens. Finally, the C-Chain connects to the Ethereum virtual machine, which means dApps on Ethereum can connect to the Avalanche network. Some popular Ethereum dApps like Curve Finance and Aave have already been launched on Avalanche's C-Chain.
AVAX is Avalanche's native cryptocurrency. Users who own AVAX can stake this coin to gamble, pay network fees, or control the blockchain.
Ethereum vs Competitors: Will Ethereum Survive?
Despite the rise of Ethereum killers, most cryptanalysts do not believe that Ethereum will “die” any time soon. As the world's first smart contract blockchain, Ethereum has a significant advantage over its competitors. Most cryptocurrencies on the web3 are still centered on the Ethereum protocols, and there is a large community of developers and validators on the Ethereum blockchain.
At the time of writing, Ethereum has a total of$31.5 billionblocked on its DeFi protocols, accounting for more than 50% of the total blocked value (TVL) of all DeFi apps.
Although Ethereum has a strong community, it has significant scalability issues. Most Ethereum replacements lure users and developers alike with promises of cheaper fees and faster transaction speeds. Even with Ethereum's recent upgrade to PoS, Ethereum's main blockchain is slower and more expensive than alternatives like Solana and Cardano.
Additionally, as more chains like Polkadot adopt blockchain interoperability, it's unclear whether Ethereum will retain its competitive advantage. Some cryptocurrency enthusiasts see interoperability as the future of Web3, which could mean Ethereum competitors get a bigger share of TVL.
Whether Ethereum remains the dominant smart contract blockchain will depend largely on the success of recent Ethereum upgrades.
How does "Fusion" affect Ethereum?
Speaking of upgrades, the Ethereum blockchain has its long-awaited "to join' in September 2022. This significant change has migrated the original Ethereumworking test(PoW) to a PoS chain.
The immediate effect of the merger was that Ethereum became almost 100% more energy efficient. Additionally, the merger has significantly reduced the daily issuance of ETH, which could reduce the overall supply of ETH tokens.
While moving to PoS won't solve Ethereum's problems with network congestion or gas fees, it could lay the groundwork for future upgrades. Ethereum developers plan to introduce many new features aimed at improving mainchain efficiency. For example, developers can introduce "shard" chains that can record and process transactions faster than the current Ethereum blockchain.
It is unknown how long it will take the Ethereum team to implement these new features, but the developers aim to reach 100,000 TPS. For comparison, the current Ethereum blockchain can only handle about 30 TPS.
Ethereum Layer 2 scaling solutions
In addition to the post-merger upgrades on Ethereum, there are many Layer 2 blockchains that are already making the interface to Ethereum cheaper and faster. Unlike ETH killers, these layer 2 blockchains are built on top of Ethereum and focus on making the main blockchain more convenient.
Nowadays,polygonis one of the leading layer 2 blockchains built on top of Ethereum. It uses smart contracts to offer scalability solutions connected to the Ethereum main chain. Thanks to Polygon's significant growth, it is available on most of the largest Ethereum dApps, including Uniswap and Aave.
Although Polygon is the largest Tier 2 blockchain, it's not the only project trying to improve Ethereum's scalability. Projects like Optimism and Arbitrum are other Layer 2 blockchains that work with many Ethereum dApps.
The growth of Layer 2 scaling solutions can keep Ethereum competitive even as ETH killers steal part of the cryptocurrency market.
End
The rise of Ethereum competitors cannot be denied, but Ethereum still dominates as the leading smart contract platform. While ETH killers have faster transaction speeds and lower fees, they all have unique strengths and weaknesses. Additionally, as Ethereum progresses with its post-merger upgrades, some of its competitors' value propositions may be nullified.
While Ethereum may lose market share as more competitors enter the market, it still has a significant advantage in the smart contract space. Additionally, thanks to the growth of Layer 2 scaling solutions, it is becoming easier for users to interact with Ethereum without paying exorbitant fees.
At Worldcoin, we envision a future where all blockchains can coexist. Increased collaboration and communication between blockchains will help drive innovation in the cryptocurrency industry. To make the first step easier, we are putting a piece of our cryptocurrency into the hands of every person in the world for free. We also send free DAI tokens to anyone who downloads our app.Subscribe to our YouTube channelto learn more about the crypto ecosystem.
FAQs
Does Ethereum have a competitor? ›
Ethereum's alternatives and competitors. See how Ethereum compares to similar products. Ethereum's top competitors include Aptos, Fluency, and Data Gumbo.
Can Cardano replace Ethereum? ›Even the most bullish of Cardano supporters acknowledge that Cardano will only potentially surpass Ethereum within six to 10 years, not earlier.
Why Cardano is better than Ethereum? ›Cardano system is more scalable than Ethereum and can handle more transactions. Ethereum struggles with transaction volume. When things are calm, the network works fine. But when a bull market starts and millions of new investors get into crypto, Ethereum can't keep up.
What crypto will overtake Ethereum? ›Solana (SOL -0.82%) and Cardano (ADA -0.86%), for example, are two so-called "Ethereum killers" that have real potential to become more prominent in the crypto market.
Which coin will replace Ethereum? ›QTUM. One of the most promising contenders for Ethereum's title is QTUM, a hybrid cryptocurrency technology that takes the best attributes of bitcoin and Ethereum before blending them together.
Who is controlling Ethereum? ›No one person owns or controls the Ethereum protocol, but decisions still need to be made about implementing changes to best ensure the longevity and prosperity of the network. This lack of ownership makes traditional organizational governance an incompatible solution.
Why ETH is not a good investment? ›Ether (ETH), the native token on the blockchain network Ethereum and the second-largest cryptocurrency by market cap, is a risky and volatile investment. It should only be considered if you have a high risk tolerance, are in a strong financial position and can afford to lose whatever you invest in it.
Does Cardano still have a future? ›Many experts predict Cardano to have a bright future in 2023. With continued developments taking place within the Cardano ecosystem and in the crypto asset market as a whole, we may see Cardano potentially reaching a new high. The estimated price of Cardano (ADA) January 2023, according to experts, is USD2. 33.
Which cryptos will survive long term? ›Bitcoin and Ethereum will survive the crypto winter and thrive in the future, but if you are a risk-tolerant crypto investor looking for a name that's a bit out of left field and higher on the risk spectrum, Fantom would be a good bet to be one of the survivors of the crypto winter because of its long-term perspective, ...
How high can Cardano realistically go? ›Based on the analysis of the costs of Cardano by crypto experts, the following maximum and minimum ADA prices are expected in 2027: $2.89 and $2.50. On average, it will be traded at $2.57.
Is Solana better than Ethereum? ›
Ethereum is more popular, but Solana has faster speeds and lower transaction costs.
Which coin is better than Cardano? ›While Cardano vs Luna Classic is a notable cryptocurrency battle in today's market, these cryptos use different mechanisms. While Cardano is intended for general use, Luna Classic (LUNC) has been one of the top-gaining cryptocurrencies at the beginning of Q2 2022.
What is the disadvantage of Cardano? ›Cardano's drawbacks include the fact that its blockchain is still under development. Many important features such as scalability are still being developed, although progression is steady. Ethereum is also developing scalability improvements through sharding, and that is a key threat of Ethereum against Cardano.
Why Solana will overtake Ethereum? ›Solana is faster and cheaper than Ethereum, and that will be its long-term advantage.
Will Solana be bigger than Ethereum? ›Solana could be just as large as Ethereum, if it manages to attract more developers to launch their apps on the Solana network. As of 2022, there is a huge gap between the two networks, and Ethereum has a TVL (Total Value Locked) that is 95% higher than Solana's TVL.
Will Solana be the next Ethereum? ›...
Solana explained.
| Long position overnight fee | -0.0500% |
|---|---|
| Overnight fee time | 22:00 (UTC) |
| Spread | 60.00 |
The Sharding Upgrade after Ethereum Merge
Sharding would be done in an effort to improve its bandwidth for processing transactions. This upgrade is set to be executed in 2023.
Ethereum (ETH)
The upgrade also allows the Ethereum network to handle more transactions per second, improve the platform's scalability and lower transaction fees. Compared to bitcoin, ethereum lacks scarcity — bitcoin supply is capped at 21 million coins — and widespread acceptance by companies and governments.
New blockchains like solana and cardano also provide similar functionality to ethereum and have their own native cryptocurrencies. Still, experts say ethereum is well positioned to grow with its users and meet evolving demand in the future.
Which country controls Ethereum? ›“80 percent of the mining capacity is based in China for both Bitcoin and Ether.”
Does Amazon control Ethereum? ›
Amazon Managed Blockchain's Ethereum Mainnet nodes run on the Ethereum PoS network. The Merge upgrades Ethereum's consensus from PoW to PoS by merging Ethereum Mainnet with the Beacon Chain Proof of Stake system.
What country owns the most Ethereum? ›- Total4752 (100%)
- United States2018 (42.47%)
- Germany589 (12.39%)
- United Kingdom205 (4.31%)
- Singapore202 (4.25%)
- Japan157 (3.30%)
- Canada137 (2.88%)
- France130 (2.74%)
For 2022-3 in general, we think recession risks pose a risk to ETH and so now might not be the best time to buy ethereum if you have a medium-term outlook. We think ethereum is a good long-term investment for the next one to three years and are bullish overall.
Can Ethereum ever shut down? ›Downtime: the applications never shut down unexpectedly and can never be switched off.
What is the problem with Ethereum? ›Despite its success, Ethereum has been dogged by criticism that its transaction speeds are too slow, and that its computing process is an ecological catastrophe. The environmental criticism, in particular, threatens to overshadow the achievements that have made Ethereum the pulse of the crypto ecosystem.
Which crypto will explode in 2023? ›The 5 next cryptocurrencies to explode in 2023
FightOut - A new move-to-earn app rewarding users for exercising. Dash 2 Trade - A crypto signals dashboard and market intelligence platform. C+Charge - A project that seeks to revolutionise the EV charging industry. RobotEra - A Sandbox-like planet-rebuilding game.
Is it wise to invest in Cardano? Yes, Cardano is one of the most fundamentally strong cryptocurrencies in the market today. The fact that it is trading at a considerable discount makes it an excellent cryptocurrency to buy in 2023.
How many Cardano is left? ›Cardano has a total limited supply of 45 billion tokens, and there is nearly 34 billion in circulation. That means there's around 11 billion ADA tokens left in the market.
Which crypto has best future? ›- Bitcoin (BTC) Bitcoin has been around for the longest of any cryptocurrency. ...
- Ethereum (ETH) ...
- Binance Coin (BNB) ...
- Cardano (ADA) ...
- Polygon (MATIC) ...
- Terra 2.0 (LUNA) ...
- Avalanche (AVAX) ...
- Chainlink (LINK)
Deposits into DeFi services surpassed $200 billion in 2021, and demand is expected to grow in 2022. Carol Alexander said that investors looking to make gains in smaller areas of crypto will want to watch Ethereum, Solana, Polkadot, and Cardano coins in 2022.
What is the most stable crypto to invest in? ›
- Tether. Tether (USDT) is one of the oldest stablecoins in the crypto market. ...
- USD Coin. USD Coin (USDC) is also pegged 1 to 1 to the USD. ...
- Binance USD. Binance USD (BUSD) is a stablecoin offered by the largest crypto exchange in the world Binance. ...
- TerraUSD. ...
- Dai.
From time to time, it managed to achieve a fairly decent increase in value, and on the other hand, from time to time, its value decreased significantly. ADA is indeed looking to recover from 2022 losses, but as you can see, some serious growth in the value of this coin will not happen during 2023.
Does Cardano have potential to reach 100? ›At the time of writing, Cardano's price is roughly $0.25. Therefore, if ADA were to reach $100, investors would experience a return of 400x. However, more importantly, to reach $100, Cardano would need to reach a whopping market value of roughly $3.5 trillion.
What will Cardano be at in 10 years? ›A cryptocurrency research firm by the name of Crypto Research Report is calling for Cardano ADA to reach $12.50 by 2025, and $45.60 by 2030.
What is a better buy Cardano or Solana? ›If you're an investor who values a peer-reviewed, scientific process before implementing new technology, Cardano may be a better fit for your portfolio. If transaction speed is the name of the game, Solana might be the better choice.
Does Solana have a future? ›Solana Price Prediction 2026
The experts in the field of cryptocurrency have analyzed the prices of Solana and their fluctuations during the previous years. It is assumed that in 2026, the minimum SOL price might drop to $100.66, while its maximum can reach $116.56. On average, the trading cost will be around $104.11.
Transaction Speed
While Ethereum can only process 30 transactions per second, Solana can process 65,000 transactions per second. The block time of Ethereum is 15 seconds, whereas that of Solana is just one second.
...
4. RobotEra (TARO) - Top P2E Crypto in Newly Launched Presale.
| Presale Started | November 2022 |
|---|---|
| Chain | Ethereum |
| Min Investment | 1,000 TARO |
| Max Investment | N/A |
Ethereum. The second largest crypto by market cap is likely to grow in 2022 and 2023, according to crypto enthusiasts. According to some predictions, Ethereum could reach a worth between $8,000-$10,000 by the end of 2022.
Why is Cardano not popular? ›The most common complaint about Cardano is that the Cardano ecosystem just isn't big enough. Developers aren't building on top of the Cardano blockchain, they say. As a result, there isn't much happening on the Cardano blockchain.
What problem is Cardano trying to solve? ›
Specifically, Cardano aims to solve problems related to scalability, interoperability, and sustainability on cryptocurrency platforms. The first problem refers to the slowing down of networks and high fees due to increase in transaction volumes. (See also: Will High Transaction Fees Bring Down Bitcoin's Price?)
What is so special about Cardano? ›Cardano is an ecosystem that allows other developers to create tokens, decentralized applications, or create other use cases for scalable blockchain network. Cardano uses PoS in its consensus and doesn't reward Ada as an incentive in a competitive mining process like Bitcoin does.
Who is the Ethereum killer? ›We'll go over four of the most notorious ETH killers, as well as why they're called that. Cardano, Solana, EOS, and Polkadot are some of the most well-known ETH killers. If you're looking for a place to buy ETH killers, CoinSwitch has them available on their platform.
Is Solana an Ethereum competitor? ›Solana is one of the few Ethereum rivals that might survive a long crypto winter, due to its innovative approaches to winning over crypto users and developers.
Is Solana an ETH killer? ›Solana was once regarded as one of the most popular blockchain networks in the world. It was even considered an 'Ethereum-killer' for its incredible transaction speed and much lower gas fees. However, 2022 has been brutal for the Solana network.
Is Polkadot an ETH killer? ›Solana, Avalanche, Algorand, Polkadot, and Cardano—sometimes referred to as “Ethereum killers” because they offer similar features to the leading smart-contract network but at significantly lower costs—are climbing.
Who owns the majority of ETH? ›| Stockholder | Stake | Shares owned |
|---|---|---|
| Parkwood LLC | 0.26% | 790,000 |
| Rye Brook Capital LLC | 0.10% | 304,200 |
| Rothschild Investment Corp. | 0.08% | 250,574 |
| Benedetti & Gucer, Inc. | 0.02% | 70,491 |
Ethereum was founded in 2013 by Russian-Canadian programmer Vitalik Buterin and several other crypto entrepreneurs.
Which crypto can beat Solana? ›The blockchain will become much more scalable, increasing the processing speed to several thousand transactions per second. This will consequently reduce the gas fees as well. Ethereum currently has over $200 billion market capitalization, almost 18 times more than Solana's $11.5 billion.
What's the next Ethereum? ›As a result, investors have always sought out "the next Ethereum" that could make them crypto millionaires. In 2022, Solana emerged as the most likely Ethereum challenger.