You often read aboutEthereum (ETH) killers” as Cardano (ADA) Which is or is not expected to become the biggest project in the crypto market. But do we getwinner takes everything” continent? In this week’s Timo article, I write about my expectations for the relationships between different smart contract networks.
Crypto Generations: From Bitcoin to Cardano
First we had Bitcoin (BTC)It is a decentralized digital network that allows users to send, receive and own value. Revolutionary technology and the monetary system. Bitcoin may now help poorer countries economic revolution by making. But the blockchain has more to offer, as Vitalik Buterin also believed in 2013, when he invented Ethereum.
Ethereum can do what Bitcoin can do, but it is taking a step forward. You can develop and implement smart contracts on Ethereum. The possibilities are endless especially decentralized finance This is now in the spotlight. In the future, people will be able to borrow and lend money without the intervention of the bank. A large number of users are already doing this via various DeFi applications. Let’s get a file Non-replaceable code (NFT) Unforgettable madness.
While Bitcoin is the first generation of the blockchain, Ethereum is the second generation. But as technology advances and it becomes clear that Ethereum has some flaws here and there (high transaction costs, for example), new projects like mushrooms have emerged. These newer networks, running on more efficient and scalable protocols, are third-generation blockchains.
Could Ethereum suffocate and the rest, or does it help Ethereum breathe?
These 3G networks include Cardano, Solana employment Polkadot (DOT). Cardano is working on a proof of stake (PoS) The developers have looked at what can be done better with Bitcoin or Ethereum and have implemented this in their own project. The latter also applies to projects such as Solana and Polkadot; Developers look around and learn as the industry evolves.
These networks are often more efficient, faster, cheaper, and more scalable. But does this immediately mean that Ethereum is redundant? I do not think so. Each network often serves its own target group with technology that works better with some than others. Ethereum also has the extension first engine An advantage, a large number of developers to build on and a very strong brand. Moreover, Ethereum does not stand still. In the near future, this network will also switch to PoS protocol.
In addition to competition, we also cooperate
It seems more logical to me that these projects will collaborate more often in some areas. This week we have already seen the news that Cardano gets side chain Giving Ethereum and Cardano a kind of bridge. People can use smart contracts on Ethereum from their Cardano wallet. This interoperability is, according to many, essential to the widespread use of blockchain and crypto. For many projects, the goal is not to inflate the price of cryptocurrency. Their goal is to make the world a better place. If successful, the prize will of course follow.
I expect that in the coming years we will see values (reading user numbers, DeFi locked encryption, etc.) Does this mean that the market value of Ethereum will drop to approach Cardano, Binance Coin (BNB) And Polkadot, or are these networks getting close to Ethereum? In the end, all projects that already have something to offer will be able to help each other. So I offer a well diversified cryptocurrency portfolio in order to take advantage of the growth that the entire crypto market is currently experiencing.
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