Its native cryptocurrency, Ether, is built on top of the open-source Ethereum blockchain, which runs smart contracts. Ethereum is used in most decentralized apps, representing the most significant percentage of total assets invested in DeFi initiatives.
It is one of the known cryptocurrencies with popular demand on manycrypto trading platforms. However, several other cryptocurrencies have jumped in as rivals, seeking to improve Ethereum’s functionality.
These competing platforms, so-called “Ethereum Killers,” often strive to accommodate a broader range of assets, reduce transaction times and costs, or provide higher staking rewards to currency holders. This article covers five of Ethereum’s competitors and their advantages.
Chainlink is an open-source, decentralized oracle network. It significantly enhances smart contract capabilities by allowing access to real-world data and off-chain computing while keeping the security and reliability assurances inherent in blockchain technology.
The cryptocurrency was introduced in 2019 on the Ethereum blockchain. However, it is intended to be blockchain agnostic. As a result, it may also be used with other blockchains like Ethereum, Polygon, xDai, BSC, Cosmos, Polkadot, Avalanche, and more.
Cardano is a third-generation proof-of-stake cryptocurrency that is decentralized. While it shares traits and uses with other blockchain systems like Ethereum, Cardano stands apart by committing to peer-reviewed scientific research as the foundation for platform improvements.
Recently, Cardano has launchedAlonzo smart contracts, which will take place in multiple phases. Smart contracts are an essential aspect of Cardano’s development. For the first time, they will allow the platform to host Decentralised Finance (DeFi) applications and compete with existing DeFi ecosystems. Some experts believe that Cardano’s additional features will help it become a popular DeFi platform, although that remains to be seen.
Stellar is one of the cheapest tokens. It is yet another open-source cryptocurrency and payment network. Stellar allows you to produce, transmit, and exchange digital representations of any currency, including dollars, pesos, bitcoin, and more. You may establish a 1:1 relationship between your traditional currency and your digital token. To put it another way, because digital tokens are exchangeable, you may treat them the same way you would traditional money. It was built so that all of the world’s financial systems may communicate through a single network.
Stellar Smart Contracts (SSC), unlike the other smart contract features, are geared for transferring, storing, and exchanging value rather than having a smart contract language or a built-in virtual machine to run code. They combine transactions with various constraints to achieve a result.
Like Ethereum and other cryptocurrencies, Tezos is a decentralized ledger that uses blockchain technology, and it is also designed to use smart contracts, taking the concept “one step further by letting participants directly control the network’s rules.”
While Ethereum uses Solidity, an object-oriented, high language programming language, for smart contracts, Tezos uses Michelson. Michelson is a Tezos-specific programming language featuring capabilities including data structures, functions, and stack-based programming. Formal verification is supported by this programming language, essential for transactions (escrow smart contracts) involving significant financial resources. Ethereum does not support formal verification.
Despite its infancy, everyone can see the growth taking place behind the scenes of Polkadot that was just launched on May 26, 2020. It was founded by Gavin Wood, one of the co-founders of Ethereum, making the two cryptocurrencies closely related to each other.
Polkadot is a blockchain network protocol that allows any data, not only tokens, to be exchanged between public, permissionless, open blockchains and private, permissioned blockchains. It differs from Ethereum, which enables developers to build and test their applications using smart contracts. It allows the developers to construct applications that can connect with other ledgers through a relay chain instead.
At the time of writing, Ethereum has a market capitalisation of over $300B, while its nearest competitor, Cardano, has a market capitalisation of over $50B. It is quite unlikely for each mentioned cryptocurrency to overtake Ethereum based on the demands. Although these cryptocurrencies may be related by competition, it is also unlikely to work together in the future.