Ethereum problems and high fees have forced many companies to create tier 1 solutions such as Optimistic Rollups, OMG Network and many more. These platforms make it possible to generate transactions outside the Ethereum network in so-called “side chains”, which can then be reconciled on the Ethereum network in a single transaction.

These Tier 2 options are gaining traction pending Ethereum 2.0, which aims to address current high gas charges by splitting and sharing transactions across multiple blockchains.

Several projects have made both Tier 1 and Tier 2 decisions to provide users with an alternative to the currently required fees shown on the Ethereum blockchain. Prominent among these projects are decentralized exchanges such as SushiSwap and 1 inch. Serge Koons, co-founder of 1inch Network, told Cointelegraph: “We are ready to move to any other blockchain with enough DEX, tokens and users. Whether it is a separate blockchain such as BSC, NEAR, TRON, Solana, or it is an L2 solution. Like Optimism or zkSync. ”

Smart Binance Series: courtesy during competitions
Meanwhile, Tier 1 projects such as Binance Smart Chain or BSC provide users with cheaper and faster trading and liquidity options. BSC is one of the most popular Ethereum options considering all of Binance’s performance. Zhenwu Shi, founder of InfStones, one of the top 10 recommendations for the BSC network, told Cointelegraph:

“It only takes $ 0.1 to complete a transaction on BSC and is confirmed within 5 seconds, while on Ethereum it takes $ 20 and a few minutes. This good performance has attracted many developers to port their projects to BSC. Furthermore, Binance invests many technical resources in the development of BSC, and the technological progress of BSC is much faster than in other projects. ”
While BSC can be considered the current competitor to Ethereum, there are other ways to look at the current scenario. BSC offers businesses and users an alternative that saves space on the Ethereum chain and provides lower gasoline prices on the currently congested blockchain. However, some criticize BSC for being central, so there are many factors to consider when considering efficiency and decentralization.

Many believe that the future of blockchain and smart contract platforms will be distributed if there is not a single project on the market that covers the entire spectrum. Several projects will have different benefits and features that they can provide to the users. Sometimes even brands can create projects that are different from each other. As such, Ethereum is unlikely to remain the dominant decentralized economic driver it has been so far. Ilya Abugov, consultant for the DeFi data platform DappRadar, told Cointelegraph:

“ETH 2.0 is too far from competing blockchains that can create their own ecosystems. When ETH 2.0 launches, this is probably just one option for project teams. It should improve the situation in the Ethereum ecosystem, but it will not work. back to Ethereum “. As the only viable option.”
Community Project, Cardano
Several other projects offer different approaches to smart contracts and DeFi technology that can compete with and complement the current model that has dominated Ethereum so far and has had a strong impact on the network. Apart from BSC, Cardano is often seen as one of Ethereum’s main competitors.

The Cardano community is passionate and the community has seen a rapid expansion. Love him or hate him, Charles Hoskinson can move the audience. Cardano was built from scratch with the support of academic research. Many in the blockchain industry consider Cardano to be one of the best blockchains in the crypto space. The industry criticized Cardano for the first slow development. But once the system is up and running, thinking, planning and design can provide rapid acceleration and implementation.

Cardano is one of the pioneers in the new contract model UTXO Extended. UTXO Extended is based on the boxed transaction structure introduced to the market with bitcoin. However, UTXO boxes get customizable logic and programmability. Instead of the contract model that was adopted since Ethereum, UTXO has expanded a unique feature where the contract logic does not work in the blockchain itself. The UTXO Reach model prevents chain bends where account model smart contracts accumulate.

Source: CoinTelegraph

LEAVE A REPLY