Top Five (5) Ethereum Killers to Invest in 2022

0
112
Top Five (5) Ethereum Killers to Invest in 2022
Top Five (5) Ethereum Killers to Invest in 2022

The second-largest blockchain platform, Ethereum, has gained popularity as the network of choice for most non-fungible tokens (NFTs) and decentralized finance (DeFi) projects. Its native token, Ether, climbed to second in the global market cap. More than 100 unique DeFi projects began development on its native smart contract blockchain, which is used by most of the NFT infrastructure building market.

But it also faced slow network speeds and high transaction fees. While Ethereum has already started a process to resolve these issues, new projects dubbed “Ethereum killers” are taking advantage of the opportunities created in the meantime to provide a faster, more energy-efficient network.

In this article, we will be discussing what an Ethereum killer is and the top five Ethereum killers we can invest in 2022.

What is an Ethereum killer?

For crypto investors, the concept of an “Ethereum killer” is about developing a blockchain that can mitigate the shortcomings of the first mover (Ethereum blockchain). This means that the blockchain that can solve the problem has a long-term chance of taking over Ethereum.

The main issue with Ethereum is scalability. The proof-of-work mechanism hinders the development of the network, especially the processing of transactions and gas fees. Ethereum suffers from slow transaction speeds, resulting in high gas (transaction) fees associated with every transaction on the network.

These shortcomings and the desire for more Web 3.0 infrastructure have made other blockchains shine. These so-called “Ethereum killers” offer something that Ethereum currently cannot provide.

Top Five (5) Ethereum killers to invest in 2022

The top five Ethereum killers to invest in 2022 are listed below:

  • Cardano: Cardano was created in 2017 by Charles Hoskinson, one of the co-founders of Ethereum. It runs in a highly open-source environment and is often referred to as the blockchain, which offers the highest support for smart contracts and decentralized applications.

Cardano is the top contender for the greenest blockchain platform out there. It uses a proof-of-stake consensus mechanism and can also process hundreds of transactions per second. In the past, Cardano was the third-largest blockchain in the world

Cardano also has a peer review system that focuses on backtesting the entire blockchain for major and minor upgrades.

  • Solana: Solana was launched in 2017, and its adoption rate has been rapid ever since. Solana uses a Proof-of-Stake consensus mechanism and builds on top of it another unique layer called Proof-of-History.

The Proof-of-Stake mechanism allows network users to become validators to validate transactions. Validators hold a certain amount of tokens in a pool that is allowed to verify transactions. After successfully participating in the verification, the validator receives Solana’s native token, SOL, as a reward.

Proof of History allows the network to record transactions so they can be tracked and ordered more quickly. Using these consensus mechanisms, Solana can sustain a faster transaction throughput of 65,000 transactions per second. It is 2000 times faster than Ethereum.

Solana’s speed and scalable ecosystem are why it is the “Ethereum Killer”. Solana also supports Sea Level, a way to run smart contracts concurrently, making it a faster blockchain than some competitors. Institutional banks like JPMorgan Chase even refer to Solana as “the visa of the digital asset ecosystem.”

  • Polkadot: Polkadot is a blockchain whose most notable feature is its multi-chain capability. It can be connected to multiple other chains simultaneously, providing greater scalability and security. Due to its parachain concept, it is highly interoperable with other blockchains.

The concept of parachains will lead to different blockchains on the same relay chain, in this case, the Polkadot relay chain. Other blockchains in the Polkadot relay chain can benefit from its high transaction speed and scalability.

The multi-chain approach will allow developers on the network to build and publish projects easily and quickly. A unique thing about Polkadot is that you don’t have to worry about hard forks since the blockchain is forkless and doesn’t splinter.

  • Tezos: Tezos is one of the first networks to use the Proof of Stake (PoS) consensus mechanism. It has also integrated unique governance features where participants who stake at least 8,000 tokens on the network are granted voting rights, allowing them to have a say in its governance. Tezos is also known for its DApp security.

Tezos is another blockchain with smart contract capabilities to issue new digital assets and create decentralized applications (apps). XTZ is the native cryptocurrency of Tezos.

Several notable projects have been launched on Tezos, including projects in the fashion, music, gaming, sports and arts industries.

  • Avalanche (AVAX): Last on this list is Avalanche, a top contender for the Ethereum killer. The project competes directly with Ethereum due to lower transaction costs and faster transaction speeds. The project claims to be the fastest smart contract platform in the crypto and blockchain industry.

Avax recently raised $230 million to support its project and made important connections with other blockchain projects, including Graph, Chainlink, and SushiSwap. The project is gaining ground, and the interest it is gaining in this space is sure to be a top contender for Ethereum in 2022.

Conclusion

While the Ethereum killers mentioned above are choking on Ethereum, they still have a long way to go in market cap and global adoption. Since Ethereum houses more than 80% of DApps in its ecosystem, it still needs plenty of firepowers to take it down.

However, once ETH 2.0 is implemented, these supposed killers might have their work cut short. However, until we get an update, these crypto projects still have the upper hand against Ethereum.