- Ethereum already achieves two of the ‘trilemma’ of blockchain.
- Too many users on the blockchain mean more costly transactions.
Altair, Ethereum 2.0’s first hard fork, is scheduled to be live by the end of the month. So developers and programmers may start preparing for the ‘Merge’ that will replace the old proof-of-work Ethereum blockchain with Ethereum 2.0’s proof-of-stake consensus mechanism.
The change should decrease Ethereum’s power usage by 99.9%. While this is excellent news for Ethereum and its native token Ether (ETH), it is bad news for Solana, Cardano, Avalanche, and others.
Advantage of Being the First Mover
These players, nicknamed ‘Ethereum Killers’ because they promise to outperform Ethereum. In regards to the cryptocurrency world, this means cheaper and quicker. That may change with Ethereum 2.0, reducing their competitive edge. Ethereum introduced smart contracts, agreements that automatically execute when certain circumstances are fulfilled.
Ethereum already achieves two of the ‘trilemma’ of blockchain — decentralization, scalability, and security — but not scalability. Stated, too many users on the blockchain mean more costly transactions.
Without PoS, the other altcoins won’t attract as many developers to their blockchains, another area where Ethereum dominates. Ethereum has tens of thousands of developers. Most others have just a few hundred.
The target market is the only thing that separates them. For example, Ethereum is mostly Western. Conversely, Cardano and Solana target the underdeveloped globe. The issue is whether there is enough ground to share because they will all be on equal footing by 2022.