Ethereum has been on the rise, but what are its competitors? Check out this roundup article for a list of 15 Ethereum alternatives and their features.
Ethereum is far from the only cryptocurrency on the market today. In fact, there are over 1,500 different cryptocurrencies available with more being created all the time. If you’re looking for an Ethereum alternative or competitor, there are plenty of options to choose from. We’ve compiled a list of Ethereum alternatives and competitors according to finance experts. Take a look and see if any of these cryptocurrencies recommended by crypto experts fit your needs better than ETH. Let’s get started!
Why Do People Use Ethereum Alternatives?
- Scalability issues need to be addressed: Ethereum’s blockchain is currently unable to process large numbers of transactions quickly, which limits its usefulness for some applications. Ethereum will need to scale in order to meet the demand of its growing user base. This could prove to be a challenge, as the platform is still in its early stages of development.
- Lack of privacy: Ethereum’s public nature means that transaction data is visible to anyone, which could be a problem for certain types of transactions.
- Smart contracts can be complicated: The programmable nature of smart contracts means that they can be quite complex, and this can lead to errors that can have costly consequences.
- Vulnerabilities in smart contracts: Some high-profile hacks have exploited vulnerabilities in smart contracts, leading to the loss of millions of dollars worth of ETH.
- DAOs are still experimental: Decentralized autonomous organizations (DAOs) are a new and experimental way of organizing projects on Ethereum, and they have yet to be proven.
- The Ethereum network is partially centralized: – A large portion of the ETH supply is controlled by a small number of wallets, which could lead to centralization issues in the future.
- The price of ETH is volatile: Like all cryptocurrencies, the price of ETH can be quite volatile, which makes it a risky investment.
- Regulatory uncertainty: The regulatory landscape for cryptocurrencies is still uncertain, which could impact Ethereum’s use case as a platform for decentralized applications.
- Competition from other platforms: Ethereum faces competition from other blockchain platforms that offer similar features or benefits.
These are just some of the cons associated with Ethereum. While the platform does have a lot of potentials, it’s important to be aware of these risks before investing.
15 Ethereum Alternatives 2022 – 2023 (According to Crypto Experts)
1. Algorand (ALGO)
Marc Arbones, Founder & Editor at Altcoins Mastery: I see Algorand (ALGO) as an Ethereum competitor because of its faster transaction speeds, lower fees, advanced virtual machine, programming flexibility, and ease of use. Algorand is the first L1 network to be protected from quantum computers.
Algorand was created by computer scientist and MIT professor Silvio Micali. Silvio Micali is also the recipient of a 2012 Turing Award for his pioneering work in cryptography. Silvio Micali and Jing Chen (Stony Brook Professor) authored the Algorand white paper in 2017 and officially launch Algorand in 2019.
Algorand was created to address some of Ethereum’s major shortcomings, such as scalability (low speed and high fees), interoperability (cross-chain products), and technical complexity (high entry barriers for developers). Algorand aims for scalability without sacrificing security or decentralization (known as Blockchain Trilemma) with a unique design structure that differs from typical cryptocurrencies.
Similarities
Like Ethereum, Algorand is a smart contract platform that allows anyone to build decentralized applications known as dApps. Ethereum and Algorand are at the heart of decentralized finance (DeFi), which aims to create a more open and fair financial system. Algorand and Ethereum 2.0 use a Proof-of-Stake (PoS) mechanism to attain consensus..
Differences
There are a few differences that make Algorand unique:
- Higher Transaction Speed: Algorand can process over 6,000 transactions per second while Ethereum has a 12-15 TPS.
- Cheaper (No gas fees): There are no gas fees in Algorand. The minimum fee for a transaction is only 0.001 Algos. The current average gas price on Ethereum is $2.36 but the highest gas cost of $196.638 was recorded on May 1, 2022.
- Ease of Use: Algorand is simpler to program since it does not require smart contract code to generate fungible tokens, NFTs, and security tokens. They can be made with just one transaction.
- Energy Efficiency (Carbon Negative): The switch from Proof-of-Work (PoW) to Proof-of-Stake (PoS) cuts Ethereum’s energy consumption by 99.9%. Algorand has taken it a step further and earned the label “green blockchain.”Algorand is not just carbon neutral; it’s carbon negative.
- Pure Proof-of-Stake (PPoS): In PPoS there are no sanctions for misbehaving (slashing), instead, the algorithm is designed in a way that makes cheating by a minority impossible and by a majority stupid. Furthermore, Algorand does not require users to lock up their “stake” in order to participate in the system; rather, they can spend it whenever they want. Also, Algorand does not require 32 ETH to activate your own validator, anyone with 1 Algo can be selected.
- State Proofs: A recent Algorand update (Falcon) makes cross-chain product development easier, reducing trust in bridging networks. Furthermore, because state proofs are quantum secure, Algorand is the first L1 network to be protected from quantum computers.
- No Forks: Algorand consensus algorithm (PPoS) makes accidental forking impossible. When two miners find a block almost simultaneously in Ethereum, an accidental fork occurs, allowing them to possibly double-spend their coins and receive fees from both chains. This is referred to as the “nothing at stake” dilemma.
The only disadvantage I see is that Algorand has yet to build a buzz in the crypto industry, whereas Ethereum is far ahead in terms of network effects. Furthermore, the implementation of sharding to boost transaction efficiency will make Ethereum costs more manageable, making developers less likely to migrate to Algorand and other platforms.
Related: What Is the Best Crypto to Buy Right Now and Why?
2. Binance Coin (BNB)
William Alexander, Founder at LearningCryptos: Binance Coin (BNB) is, without a doubt, Ethereum’s top rival. It has one of the largest market caps in the cryptocurrency ecosystem, with a faster transaction speed, cheaper fees, and a more democratized Proof-of-Stake system.
Also, some of the biggest and most used Dapps like PancakeSwap, Gameta, and Alien Worlds function on Binance Smart Chain, BNB’s native blockchain. Its DeFi ecosystem has been flourishing for the past couple of years, reaching the second-highest TVL with a proven track record of resisting major crypto collapses, unlike Ethereum.
With all of this in mind, BNB has a bright future ahead. The network effect of its growing ecosystem will further enhance the value of BNB, outcompeting Ethereum by a mile.
Surely, as demonstrated by the producer of Ethereum, Vitalik Buterin, it could go as high as $10k and overpower bitcoin as the precursor in computerized cash.
However, as more merchants and financial backers particularly begin to comprehend that ETH is more grounded than BTC, the tide will change.
The resulting primary thought to consider is that the ERC-20 development that Ethereum uses for their tokens to incorporate the real structure inside the climate is in like manner impressively more bound together than bitcoin, where it's definitely not subject to a single show.
The third interesting point with ETH going on like this and potentially having a chance of taking over is the massive environmental issues going on with BTC.Ethereum and bitcoin both have their own upsides and downsides, however, it's getting more evident with the Ethereum people group that they need to be somewhat greener.
There are three choices: - Purchasing and putting away Ethereum on a trade like Coinbase - Purchasing Ethereum on a trade like Kraken - Making a computerized wallet and purchasing Ethereum straightforwardly through the blockchain On the off chance that you're wanting to buy right now, we recommend Coinbase.
Putting away your Ethereum disconnected with something many refer to as an equipment wallet which is fundamentally simply one more kind of programming wallet that is safer than different sorts since it stores- in the event that you're expecting to store your crypto long stretch, we recommend a hardware wallet, for instance, the Record Nano S or Trezor Clearly, there are less difficult decisions to like: - Taking care of your Ethereum in a wallet you control, as MyEtherWallet or Fog( ETH Wallet) There are two special kinds of crypto wallets.
