Ethereum, the second most known cryptocurrency, is making history due to its numerous system updates. The Merge was significant and made the blockchain more sustainable and faster, while other upgrades are on the way to make Ethereum more accessible. There are many ways to get ETH. For example, you can buy Ethereum with a credit card, bank deposit or third-party payment.
Although Ethereum is a good choice for investors, it has its disadvantages. For example, fees can be quite pricey, and the network can get congested at times due to a lack of scaling solutions. But until the blockchain’s updates are fully installed and operating, here are some note-worthy competitors that fill in the gap.
Competitors in regard to scalability
The Merge, along with the sharding updates, is planned to improve Ethereum’s scalability levels at the maximum. However, some other cryptocurrencies and blockchains do a better job at scaling than Ethereum.
The first one on the list is Solana, which was released in 2020. The blockchain is very similar to Ethereum, and some say that it might have the ability to outshine it. However, since it doesn’t have the same popularity, it’s less likely that this will happen. But people are turning to Solana because it uses a proof-of-history algorithm that blends with a delegated proof-of-stake. The benefits of this method include faster transactions and much lower costs compared to Ethereum. At the same time, with the help of smart contracts, you can build anything on Solana, from DApps to NFTs, through more accessible programming languages than Ethereum, which uses Solidity.
Another important competitor that rules scaling solutions is Polkadot, another 2020 cryptocurrency. It’s often considered the “blockchain of blockchains”, as you can interact with other blockchains through Polkadot. By serving a protocol for different protocols, this blockchain helps save money and resources while providing developers access to their own community. Although the cryptocurrency has yet to shine on the market, it’s expected that Polkadot will soon surpass Ethereum.
Competitors in regard to interoperability
Ethereum currently supports cross-chain bridges, but it lacks the infrastructure for blockchains to communicate fully with each other. Therefore, Cosmos and Cardano are the perfect choices if you need an interoperable blockchain.
Cosmos was released in 2021 and is known as a cross-platform blockchain. This decentralized network provides independent, scalable and interoperable blockchains through which the most common blockchain issues are solved. Its Byzantine Fault-Tolerant consensus algorithm gives developers the resources to customize their decentralized applications as well as benefit from scalability. The Cosmos network is based on three different layers: applications, networking and consensus. Each of these elements is tied together to allow developers to build blockchain applications. And since Cosmos relies on mostly open-source tools, the ecosystem becomes an innovation hub.
Another interoperable blockchain is Cardano, released in 2017. It’s famous for the aim to evolve “out of a scientific philosophy and research-driven approach”. Compared to Ethereum, which is valid in interoperability based on the ERC-20 standard, Cardano facilitates blockchain communication through side chains. Cardano is also a lot faster than Ethereum when it comes to transaction speed and is one of the most energy-efficient cryptocurrencies.
Cryptocurrencies in regard to security
Ethereum made smart contracts a must for developers to be able to create something new and for users to have a smooth network and safe ecosystem. However, smart contracts can have their disadvantages in regard to security. Since 2016, many investors’ ETH has been stolen as a consequence of weakness in Ethereum’s smart contract programming.
But until Ethereum solves this issue, you can try Solana, which we’ve covered in the previous paragraphs on its scalability benefits. But when it comes to security, Solana has a special infrastructure that makes it less sensible to front-running as a technique to steal crypto. At the same time, only leading validators can access transaction data before confirmation.
Another great and secure blockchain is Osmosis, which is built using the Cosmos ecosystem.
This network leverages the limitation of validators to do MEV (maximal extractable value) through threshold cryptography. Osmosis ensures that front-running is inoperable by encrypting trade values before hitting the mempool.
Cryptocurrencies in regard to privacy
Some experts say that Ethereum compromises its privacy since data is publicly shared on the blockchain as a result of smart contracts execution. Users lack financial privacy, which was thought to be4 a good thing at first, but at least now, since the Merge occurred, privacy is needed more than ever.
But this can change with the Secret Network blockchain that allows users to customize their privacy requirements. The network has made its smart contracts private so that investors can control access to their assets and data, selectively reveal content and ownership, and safely build applications. Secret Network was made with the help of Cosmos SDK and uses a proof-of-stake consensus mechanism, which facilitates encryption protocols and key management.
Another private blockchain solution is Panther, a cross-chain product that provides transactional privacy by combining zero-knowledge proof and game theory. This end-to-end scalable blockchain protocol allows developers and users to leverage a private and interoperable structure to restore user privacy and offer entry to DeFi (decentralized finance).
Can these blockchain solutions outshine Ethereum?
Depending on how fast Ethereum is developing, the cryptocurrencies presented above might only offer additional benefits to it. That’s because Ethereum has become popular and demanded blockchain with a strong and blended community, while the blockchain solutions on this list have just arrived on the market. At the same time, Ethereum’s market share cannot be compared with Cardano or Solana. These cryptocurrencies will be used to diversify one’s portfolio and as well come in handy as a blockchain alternative.
Bottom line
Ethereum is the second leading cryptocurrency on the market. At the same time, its blockchain solutions are revolutionizing technology through smart contracts, DeFi applications and Dapps. Finally, Ethereum is working hard to improve its issues, which makes it trustworthy and reliable. However, until that happens, many other cryptocurrencies, such as Cardano, Solana and Cosmos, provide faster transactions and lower fees than Ethereum.
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