Keep an eye on these 5 Ethereum alternatives
5 min read
By Anastasia Chernikova
In 2013, software engineer Vitalik Buterin proposed that blockchain, the technology that underlies cryptocurrencies, can be used to support not only finance but all sorts of decentralized applications. Buterin’s idea became the basis of Ethereum, the second-largest cryptocurrency and the “world computer,” a platform for running applications without the need for centralized servers.
From social networking to collectible cards, news publishing, and virtual reality games, the Ethereum blockchain powers all sorts of decentralized apps (dapps) today. But as the first blockchain of its kind, Ethereum is not a perfect platform. It suffers from high energy consumption, slow transaction speeds, and high transaction costs. It also suffered from scalability issues, which means transactions and applications become slower as more and more users are added to Ethereum.
In recent years, several other blockchains have emerged that provide platforms for exchanging monetary value and running applications while addressing the shortcomings of Ethereum. Here are five Ethereum alternatives that have great potential and are worth watching in the next few years.
Free TON
Free TON is a high-performance, scalable, and secure blockchain platform with a throughput of millions of transactions per second. It is a spin-off from the Telegram Open Network (TON) project, the original plan of messaging platform Telegram to move its application to its own blockchain.
Free TON runs on multiple blockchains, which gives it the power to speed millions of transactions. The platform supports the development of services and applications for a wide range of sectors, from government bodies to private companies and individual users.
Unlike Ethereum, Free TON is not run and maintained by a centralized organization. It is supported by a decentralized autonomous organization (DAO), a community of diverse parties that use smart contracts to vote and approve changes and directions of the project.
Free TON’s currency is the TON Crystal. Among the key features of the TON Crystal are its fast speed and very small transaction fees. TON users will be able to make transactions for less than $0.01 in fees and pay less than $0.05 per coin exchange transaction (swaps). Free TON also uses the proof-of-stake consensus mechanism to approve and register new transactions on its blockchain, which is much more energy-efficient and environment-friendly than the compute-heavy proof-of-work consensus used in Ethereum and Bitcoin.
Polkadot
Polkadot is a multi-chain network that joins various blockchains together, which is why it is known as the “blockchain of blockchains.” It acts as a framework that makes it easy for developers to create dapps and smart contracts for various blockchains and cryptocurrencies without worrying about the underlying mechanisms that connect them together.
DOT is Polkadot’s cryptocurrency. Aside from its monetary value, DOT allows holders to vote on potential code changes, which then automatically upgrade across the network if a consensus is reached. Like Free TON, DOT uses the proof-of-stake consensus mechanism to verify and approve new transactions.
Since its launch in 2020, Polkadot has climbed to become among the top-ten cryptocurrencies with over $40 billion in market cap and $14 million in 24-hour trading volume. The Polkadot multi-chain already hosts more than 430 projects with more being added every day. And despite being young, it has already been endorsed and listed on several top exchanges. Polkadot also hosts its own decentralized exchange (DEX) platform, Polkastarter.
Cosmos
Cosmos aims to be an “internet of blockchains.” Like Polkadot, Cosmos’s vision is not to have a “blockchain to rule them all” but to have a constellation of blockchains that can coexist and interoperate (hence the name Cosmos). Cosmos has a streamlined model that allows developers to create their own blockchains in a short time. To show the power of the system, the creators of Cosmos used the platform to create an Ethereum clone called Ethermint, which not only supports smart contracts and dapps, but is also compatible with the original Ethereum.
Cosmos is composed of three components. Tendermint is a consensus mechanism that allows developers to create proof-of-stake protocols that are scalable, fast, and secure. The Cosmos SDK is the programming platform that allows developers to build their own blockchains on Tendermint. And the Inter-Blockchain Communication protocol (IBC) is the system that enables different blockchains to communicate with each other.
The native cryptocurrency of the Cosmos network is ATOM. ATOMs give their holder the ability to stake and validate blocks, vote on governance issues, and pay for transaction fees.
EOS
EOS launched in 2019 as a direct competitor to Ethereum. The developers and supporters of EOS market it as “Ethereum for big business” and say it is meant to solve the problems of scale and usability that developers face when building applications on top of the Ethereum blockchain.
Like Ethereum, EOS supports dapps and smart contracts. However, the blockchain outperforms Ethereum in terms of execution and transaction speed.
EOS is owned by the company block.one. Among its developers is Daniel Larimer, who is a veteran of other blockchain projects (BitShares and Steemit) and has allegedly been in touch with Nakamoto in the early days of bitcoin.
EOS’s cryptocurrency is the EOS Token, which is used to exchange value on the EOS blockchain. It is currently among the top-20 most valuable cryptocurrencies. EOS also has an operating system, EOS.IO, which manages and controls dapps and smart contracts on the EOS blockchain. Developers must hold EOS Tokens to be eligible to use network resources and run apps on the blockchain. EOS supports between 10,000 and 100,000 transactions per second, which is why it presents itself as a suitable platform for large-scale businesses.
EOS uses the “delegated proof-of-stake” consensus mechanism, in which token holders elect a limited number of voters to maintain transactions and updates to the EOS blockchain.
Cardano
Cardano is another blockchain that, like Ethereum, is meant to run decentralized applications. Among the key features of Cardano are speed and scalability.
Cardano is developed by three organizations: IOHK, Cardano Foundation, and EMURGO. IOHK is doing the bulk of the engineering effort, and one of the key characteristics that set it apart from other blockchain development teams is its devotion to scientific methods. IOHK works with academic researchers across the globe to peer-review and vet updates before deploying them on the platform. Among Cardano’s founders is Charles Hoskinson, one of the co-founders of Ethereum.
Cardano has already established several robust applications on its blockchain in the banking, identity management, retail, supply chain, and education sectors.
Cardano’s cryptocurrency is ADA, which is supported by the environment-friendly proof-of-stake consensus algorithm and is currently among the top-20 most valuable cryptocurrencies.
Some closing thoughts
While cryptocurrencies and blockchains are still in their infancy in comparison to fiat currencies and centralized banks, they hold a lot of promise and can be the future of money and computing. The landscape is still diverse and fragmented, and not all existing solutions will make it to the finish line. Utility, scale, speed, and community adoption are four key traits to look out for when examining blockchains and cryptocurrencies.
About the author
Anastasia (Nastya) Chernikova is a tech journalist whose articles have been featured in Forbes and Esquire in Russia, Business Insider, Inc.com, and other publications. She has interviewed prominent tech founders, such as WhatsApp founder Jan Koum right after Facebook bought his app for $19 billion, and Vitalik Buterin, Ethereum founder, when his cryptocurrency ether was just in the beginning of its triumph. She is keen on the idea of the decentralized world and what the blockchain brings to the financial system.
Ethereum 2.0 Staking Contract Now Has 5 Million ETH
Ethereum 2.0, the network upgrade of ETH, now has more than 5 million Ethereum under its deposit contract, which is the highest level on record.
According to the latest data published by ETH tracking platform, Etherscan, the total value of the staked Ethereum under the staking contract of ETH 2.0 stands at around $14 billion in value. Ethereum 2.0 started its journey officially in December 2020 with the launch of Beacon Chain. ETH community fully supported the network upgrade and staked more than 1 million ETH within the first week of December 2020.
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The world’s second-largest digital currency has seen a volatile month after the price of Ethereum touched an all-time high of nearly $4,350 on 12 May and reached a low of approximately $1,800 on 23 May. As of writing, ETH is trading near $2,700 with a market cap of over $310 billion. Despite the latest dip, ETH is still up by more than 250% since the start of 2021.
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The recent surge in the price of ETH has accelerated whale movements. Earlier this week, crypto analytics platform Santiment highlighted a surge in whale ETH movements amid market volatility. “The amount of Ethereum whale transactions (greater than $100,000 in value) ballooned to levels not seen since January 2018 this week. After hitting an All-Time High of $4,358 just 9 days ago, ETH dropped to $2,015 (a -53.8% slide) in just one week,” Santiment tweeted.
Ethereum Supply
According to the latest data published by Glassnode, Smart Contracts hold nearly 23% of the total Ethereum supply. The growing popularity of NFTs and DeFi products has increased the demand for the world’s second-largest digital currency. One of the biggest issues with the current ETH network is its rising gas fees. Vitalik Buterin, the Co-Founder of Ethereum, recently highlighted the importance of ETH 2.0 to resolve issues in the ETH network.
Due to the latest surge in Ethereum, the total value of Vitalik Buterin’s public ETH holdings reached the level of $1 billion.
Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – May 28th, 2021
Ethereum
Ethereum slid by 4.98% on Thursday. Partially reversing a 6.72% gain from Wednesday, Ethereum ended the day at $2,745.51.
A mixed start to the day saw Ethereum rise to an early morning intraday high $2,893.96 before hitting reverse.
Falling short of the first major resistance level at $2,987, Ethereum fell to an early morning intraday low $2,639.32.
Ethereum fell through the 38.2% FIB of $2,740 and the first major support level at $2,720.
Finding late morning support, Ethereum revisited $2,880 levels before another sell-off late in the day.
Ethereum fell back through the 38.2% FIB and the first major support level before ending the day at $2,745 levels.
At the time of writing, Ethereum was down by 0.58% to $2,729.68. A bearish start to the day saw Ethereum fall from an early morning high $2,745.25 to a low $2,709.44.
While leaving the major support and resistance levels untested, Ethereum fell through the 38.2S% FIB of $2,740 early on.
For the day ahead
Ethereum would need to move back through the 38.2% FIB of $2,740 and the $2,760 pivot to bring the first major resistance level at $2,880 into play.
Support from the broader market would be needed, however, for Ethereum to break back through to $2,800 levels.
Barring an extended crypto rally, the first major resistance level and resistance at Thursday’s high $2,893.96 would likely cap any upside.
In the event of a broad-based crypto rally, Ethereum could test resistance at $3,000. The second major resistance level sits at $3,014.
Failure to move through the 38.2% FIB and the $2,760 pivot would bring the first major support level at $2,625 into play.
Barring an extended sell-off, however, Ethereum should steer clear of sub-$2,500 levels. The second major support level at $2,505 should limit the downside.
Looking at the Technical Indicators
First Major Support Level: $2,625
Pivot Level: $2,760
First Major Resistance Level: $2,880
23.6% FIB Retracement Level: $3,369
38.2% FIB Retracement Level: $2,740
Story continues
62% FIB Retracement Level: $1,725
Litecoin
Litecoin fell by 2.43% on Thursday. Partially reversing an 8.28% rally from Wednesday, Litecoin ended the day at $194.41.
A bearish start to the day saw Litecoin fall to an early morning intraday low $180.61 before finding support.
Litecoin fell through the first major support level at $184 before rising to an early afternoon intraday high $208.98.
Coming up against the first major resistance level at $209, however, Litecoin slid back to end the day at $194 levels.
At the time of writing, Litecoin was down by 1.80% to $190.92. A bearish start to the day saw Litecoin fall from an early morning high $194.57 to a low $190.40.
Litecoin left the major support and resistance levels untested early on.
For the day ahead
Litecoin would need to move through the $195 pivot to bring the first major resistance level at $209 into play.
Support from the broader market would be needed, however, for Litecoin to break back through to $200 levels.
Barring an extended crypto rally, the first major resistance level and Thursday’s high $208.98 would likely cap any upside.
In the event of an extended breakout, Litecoin could test resistance at $230. The second major resistance level sits at $223.
Failure to move through the $195 pivot would bring the first major support level at $180 into play.
Barring an extended sell-off, however, Litecoin should steer clear of the 62% FIB of $174. The second major support level sits at $166.
A sustained fall through the 62% FIB of $174 would form a near-term bearish trend from 10th May’s swing hi $413.91.
Looking at the Technical Indicators
First Major Support Level: $180
Pivot Level: $195
First Major Resistance Level: $209
23.6% FIB Retracement Level: $322
38.2% FIB Retracement Level: $265
62% FIB Retracement Level: $174
Ripple’s XRP
Ripple’s XRP fell by 5.79% on Thursday. Reversing a 5.83% gain from Wednesday, Ripple’s XRP ended the day at $0.97083.
A mixed start to the day saw Ripple’s XRP rise to an early morning intraday high $1.04420 before hitting reverse.
Falling short of the first major resistance level at $1.0853, Ripple’s XRP fell to an early morning intraday low $0.93482.
Ripple’s XRP fell through the first major support level at $0.9650 before briefly revisiting $1.03 levels.
A bearish end to the day, however, saw Ripple’s XRP fall back to sub-$0.96 levels before ending the day at $0.97 levels.
The first major support level at $0.9650 limited the downside late in the day.
At the time of writing, Ripple’s XRP was down by 1.16% to $0.95955. A bearish start to the day saw Ripple’s XRP fall from an early morning high $0.97450 to a low $0.95799.
Ripple’s XRP left the major support and resistance levels untested early on.
For the day ahead
Ripple’s XRP will need to move through the $0.9833 pivot to bring the first major resistance level at $1.0317 into play.
Support from the broader market would be needed, however, for Ripple’s XRP to break back through to $1.00 levels.
Barring an extended crypto rally, the first major resistance level and Thursday’s high $1.04420 would likely cap any upside.
In the event of an extended rally, Ripple’s XRP could test resistance at $1.15. The second major resistance level sits at $1.0927.
Failure to move through the $0.9833 pivot would bring the first major support level at $0.9224 into play.
Barring another extended sell-off, however, Ripple’s XRP should steer clear of sub-$0.90 levels. The second major support level sits at $0.8739.
A sustained fall through the 62% FIB of $0.8573 would form a near-term bearish trend from 14th April’s swing hi $1.96598.
Looking at the Technical Indicators
First Major Support Level: $0.9224
Pivot Level: $0.9833
First Major resistance Level: $1.0317
23.6% FIB Retracement Level: $1.5426
38.2% FIB Retracement Level: $1.2807
62% FIB Retracement Level: $0.8573
Please let us know what you think in the comments below.
Thanks, Bob
This article was originally posted on FX Empire
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