Ethereum’s main competitors in 2023

ByCaesar Reading Time: 3 minutes
Ethereum's main

Despite its popularity, Ethereum has drawbacks: low bandwidth and limited scalability. Until recently there were high transaction fees, but things improved slightly after the London hard fork in August 2021. September 15, 2022, marked a truly historic moment for the entire crypto market. The blockchain of the second most capitalized cryptocurrency switched from the Proof of Work algorithm to Proof of Stake. Immediately after the transition, the complexity and hash rate of mining dropped to zero. No one is mining Ethereum anymore. After the upgrade, we have a brand new asset, which is more flexible, profitable, and safe for users, more convenient and native for developers, and more open and clear for regulators. Many experts believe that Bitcoin’s dominance will end within five years, and the ever-evolving Ethereum is one of the pillars of the industry.

Ethereum’s main competitors include such projects:

  • Solana;
  • Fantom;
  • Binance Smart Chain.

Solana

What makes Solana special is its consensus mechanism. Solana uses Proof-of-History. Each transaction gets a timestamp, so there is no need to determine the order in which blocks are written. Other innovations include validators processing transactions before the previous batch is completed. The parallel method increases the speed of validation.

Solana advantages:

  • High speed (60 thousand transactions per second). According to developers’ calculations, the theoretical network throughput can reach 710,000 TPS;
  • Scalability;
  • Minimal transaction fees.

Solana uses different protocols to increase competitiveness. Solana’s capitalization is $9 billion. The coin is in the top ten of the rating – however, with a big lag behind the market leaders.

Fantom

Ethereum`s competitor originates from South Korea. The project exists since 2018, at the time of writing FTM token is ranked 61st in the Coinmarketcap rating. The blockchain is developed by Fantom Foundation. According to the statements of the project creators, they managed to solve the problems of scalability and low transaction speed. FTM vs Solana targets scalability while Solana intends to provide privacy-preserving transactions. The blockchain can be used to create smart contracts and tokens and deploy decentralized applications. 

The Fantom platform fulfills these functions:

  • Creation of ecosystems for data sharing, and fast transactions.
  • Introduction of blockchain into various industries.
  • Development of decentralized applications and tokens.

The platform runs on the Lachesis consensus algorithm, which is based on a combination of the Proof of Stake (PoS) algorithm and aBFT. 

According to the representatives of the project, the network can conduct up to 300 thousand transactions per second. The total capitalization of the coin is $659.6 million.

Binance Smart Chain

Binance cryptocurrency exchange released a native token on Ethereum in 2017. In 2019, the Binance Chain blockchain was launched. The native tokens were transferred to the BEP-2 standard network. In September 2020, the exchange launched the Binance Smart Chain (BSC) platform. The network allows the deployment of smart contracts, creating NFTs, and thus competes with Ethereum. 

BSC uses the Proof-of-Stake-Authority algorithm. It is based on the BEP-20 trial standard. Binance Smart Chain can process over 200 transactions per second. Taking into account the features of Binance Smart Chain, we can assume that it can replace Ethereum. Сurrently BNB is ranked 4th in the global ranking with a capitalization of $37, 3 billion.  

On Godex.io you can exchange HNT to BNB, Sol for FTM, FTM for ETH, and many more coins anonymously and reliably.  Proper diversification of assets is one of the key factors of successful investing.

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