Welcome to the complex, burgeoning world of blockchain-based currencies, where Ethereum is the second-largest currency by market cap and the project people talk the most about. Ethereum has gained great popularity in the sector due to its groundbreaking ability to host smart contracts and decentralized applications, projects that encourage people to make use of blockchain technology. However, Ethereum might dominate the altcoin market, and the ETH coin price might be higher than the other alternative coins, but it’s definitely the only project in the industry that has drawn interest, especially since the market has turned bullish again. Everyone knows that the crypto world is the realm of innovation, and competition is higher than in any other sector.

Blockchain technology allows the development of new projects daily, and some of them could challenge Ethereum’s dominance, through their unique features. Some investors call them alternatives, some competitors, but at the end of the day, they are the same thing, projects meant to keep Ethereum on its toes.

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Let’s have a look at the global crypto market

Reports show that the global crypto market was worth $4.67 billion in 2022 and will most likely grow by 12.5% until 2030 to surpass $11.7 billion. Bitcoin and Ethereum are the two largest cryptocurrencies by market cap and the most popular projects in the sector. Bitcoin is the first digital currency and all the other projects launched after it were called altcoins (alternative coins) because they were developed to offer solutions to its drawbacks and limitations. Bitcoin was developed by Satoshi Nakamoto in 2009 as a decentralized digital currency that enables transactions without the involvement of third parties like financial organizations or governments. Since its inception, Bitcoin has always been powered by the Proof-of-Work algorithm which is considered quite energy-intensive.

Ethereum was created to offer extra features to bitcoin’s limitations, and was launched in 2015 by Vitalik Buterin. It has evolved into an open-source platform available worldwide that enables the development of decentralized applications and the execution of smart contracts. Among the decentralized apps native to the Ethereum network are De-Fi apps, non-fungible tokens, tokens, decentralized exchanges, and lending protocols.

While Ethereum is the dominant ecosystem for building decentralized apps, it comes with its own flaws, which have prevented its mass adoption. In this context developers have exploited its weaknesses and introduced competitive blockchains that could replace Ethereum.

The term of Ethereum killer took shape

The term Ethereum killer is widely used in the sector to refer to ecosystems that compete directly with Ethereum. Most of these projects have similar features with Ethereum but they also use different technologies to improve Ethereum’s issues. The cryptocurrencies that have earned the title of Ethereum killers tend to use high-end technology, have lower gas fees, and increased transaction speeds, which are some of Ethereum’s shortcomings.

Ethereum killers support smart contract technology, which is something that made Ethereum famous. Smart contracts are blockchain-based programs that complete preset functions based on a set of established conditions.

Ethereum alternatives or competitors

Binance Smart Chain (BSC)

Binance Smart Chain, developed by Binance, one of the world’s largest cryptocurrency exchanges, is a blockchain that runs in parallel with Binance Chain. Launched in September 2020, BSC was designed to facilitate fast and low-cost transactions, addressing some of Ethereum’s most pressing issues. BSC is particularly known for its compatibility with the Ethereum Virtual Machine (EVM), allowing developers to port their Ethereum-based dApps to BSC with minimal modifications.

Strengths:

– Low Transaction Fees: BSC offers significantly lower transaction fees compared to Ethereum, making it attractive for users and developers.

– High Throughput: BSC can handle more transactions per second (TPS) than Ethereum, contributing to its faster confirmation times.

– EVM Compatibility: The ease of porting dApps from Ethereum to BSC has led to rapid adoption by developers.

Weaknesses:

– Centralization Concerns: BSC is criticized for being more centralized than Ethereum, with only 21 validators, most of which are controlled by Binance, raising concerns about the platform’s decentralization and security.

– Security Issues: The fast pace of development and the lower barrier to entry for projects have led to a higher incidence of scams and hacks on BSC.

Solana

Solana has gained significant attention as one of the fastest blockchains in terms of transaction speed. Launched in March 2020, Solana boasts a unique consensus mechanism known as Proof of History (PoH) combined with Proof of Stake (PoS), which allows it to achieve high throughput without compromising decentralization.

Strengths:

– Speed and Scalability: Solana can process over 50,000 TPS, making it one of the fastest blockchains. This scalability is a major advantage for applications that require high transaction volumes, such as decentralized finance (DeFi) platforms.

– Low Costs: Due to its high throughput, Solana offers very low transaction fees, which is attractive for both developers and users.

– Developer Ecosystem: Solana has a rapidly growing developer ecosystem, supported by a range of tools and frameworks that make it easier to build on the platform.

Weaknesses:

– Network Stability: Despite its impressive speed, Solana has experienced multiple network outages, raising concerns about its reliability.

– Complexity: Solana’s unique architecture and consensus mechanism can be challenging for developers to work with, which may slow down adoption.

Cardano

Cardano, developed by IOHK and founded by Charles Hoskinson, one of Ethereum’s co-founders, is often touted as a “third-generation” blockchain. Launched in 2017, Cardano aims to improve upon the limitations of both Bitcoin and Ethereum, focusing on scalability, interoperability, and sustainability.

Strengths:

– Research-Driven Approach: Cardano is known for its rigorous, peer-reviewed development process, which ensures that the platform is built on a solid scientific foundation.

– Ouroboros Consensus Algorithm: Cardano’s PoS consensus mechanism, Ouroboros, is designed to be energy-efficient and secure, addressing some of the environmental concerns associated with PoW-based blockchains like Ethereum and Bitcoin.

– Interoperability: Cardano has placed a strong emphasis on interoperability, allowing it to interact with other blockchains and legacy systems, which could be a significant advantage in the future.

Weaknesses:

– Slow Development: Cardano’s commitment to a research-driven approach has led to a slower development process compared to other blockchains, which has been a point of criticism.

– Limited dApp Ecosystem: As of now, Cardano has a relatively small ecosystem of dApps compared to Ethereum, although this is expected to grow as the platform matures.

Polkadot

Polkadot, developed by the Web3 Foundation and founded by another Ethereum co-founder, Gavin Wood, is a multi-chain network designed to enable different blockchains to interoperate and share security. Launched in 2020, Polkadot aims to create a “blockchain of blockchains,” allowing different networks to connect and communicate seamlessly.

Strengths:

– Interoperability: Polkadot’s primary strength lies in its ability to connect different blockchains, enabling them to exchange information and assets in a secure and efficient manner.

– Scalability: Polkadot’s architecture allows it to process multiple blockchains (parachains) simultaneously, significantly increasing the overall network throughput.

– Shared Security: By connecting to Polkadot, parachains benefit from the shared security of the entire network, reducing the need for each blockchain to establish its own security infrastructure.

Weaknesses:

– Complexity: Polkadot’s multi-chain architecture is complex, which can be a barrier to entry for developers and users who are not familiar with its unique features.

– Parachain Auctions: The process of securing a parachain slot on Polkadot involves auctions, which can be expensive and competitive, potentially limiting access for smaller projects.

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