Vitalik Buterin, a software engineer, proposed that blockchain support all sorts of decentralised applications, not just finance. Ethereum, the second-largest cryptocurrency in the world, became the platform for introducing decentralised apps. It faced several issues, being the first of its type, including high energy consumption, poor transaction rates, and high transaction prices.
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A variety of blockchains have been developed to provide platforms for swapping monetary value and operating applications while addressing Ethereum’s limitations. The alternatives that emerged to give solutions to Ethereum’s issues are sometimes referred to as “Ethereum killers.”
Cosmos’ goal is to establish a network of blockchains that can coexist and collaborate. The Cosmos mini-blockchains can connect thanks to the ATOM token. Its blockchain is already used by hundreds of applications, including wallets, enterprise organisations, and stablecoins. Cosmos’ aim is not to establish a “blockchain to rule them all.”
Cosmos is formed of three parts.
- Tendermint is a consensus method that enables developers to construct scalable, quick and secure proof-of-stake protocols.
- The Cosmos SDK is the programming framework that lets developers create their Tendermint blockchains.
- The Inter-Blockchain Communication protocol (IBC) is the mechanism that allows various blockchains to interact with one another.
Polkadot is a multi-chain network that connects several blockchains. It enables developers to easily construct DApps and smart contracts without worrying about the underlying technologies that link them. Polkadot has risen to become one of the top ten cryptocurrencies, with a market worth of nearly $40 billion and a trading volume of $14 million since its inception in 2020. Its native coin is DOT, and DOT holders can vote on proposed code modifications, which are then immediately upgraded across the network if a consensus is achieved.
With a throughput of millions of transactions per second, Free TON is a high-performance, scalable, and secure blockchain platform. It is a variant of the Telegram Open Network (TON) project, Telegram’s initial intention to migrate its application to its blockchain. The currency of Free TON is the TON Crystal, which has an extremely rapid transaction speed and very low transaction costs. The platform facilitates the creation of services and apps for a wide range of industries.
EOS launched in 2019 as a direct challenger and competitor to the Ethereum blockchain. EOS’s creators and supporters promote it as “Ethereum for large companies.” The EOS Token is its native coin and is used for trading value on the EOS network. EOS can handle between 10,000 and 100,000 transactions per second, making it ideal for large-scale enterprises. It employs the “delegated proof-of-stake” consensus process, in which token holders choose a small number of voters to keep transactions running.
Binance Smart Chain
The Binance Smart Chain (BSC) is a derivative of Binance, one of the largest cryptocurrency exchanges in the world. BSC works in tandem with the standard Binance Chain and adds functionality. The BSC has grown in popularity, thanks partly to its exceptionally cheap transaction (gas) cost compared to Ethereum’s. While the two blockchains operate in parallel, they are not mutually reliant. Because of its consensus method (Proof-of-Staked Authority), BSC is more centralised, which is why transaction costs are so low in the first place. BSC is powered by the utility token Binance Coin (BNB).
While Bitcoin maintains market domination and appeal, somewhat lesser-known altcoins have shown to be a force to be reckoned with. Ethereum has much more applications than merely being a medium of trade and a store of value. It is regarded as a “global computer” on which various decentralised apps (DApps) may be developed.
Although cryptocurrencies and blockchains are still in their infancy compared to fiat currencies and centralised institutions, they have enormous promise and might be the future of money and computers. When evaluating blockchains and cryptocurrencies, four essential characteristics to look for are utility, speed, scale, and community adoption. Despite the fact that these alternatives intend to resolve Ethereum’s issues, the market’s volatility remains. Investors are highly advised to research thoroughly before allocating money and always invest funds you can lose.