Ethereum (ETH) is without a doubt the most popular Dapps platform in the market. However, its popularity has also exposed its scalability problems, as happened with CryptoKitties, and now with Last winner. Last winner is a Chinese gaming project that is running on Ethereum. It is so popular in China that it currently has over 320k transactions, a number that has led to an upsurge of gas prices for transactions on the Ethereum blockchain.
Last winner is a sure sign that 3rd generation platform blockchains do have a future in the smart contracts market. That’s because with such problems on Ethereum, developers will in the future most likely choose blockchains that can handle high volume projects without bringing the network to a halt. Looking into the future, there are several projects that stand to gain the most from Ethereum’s scalability issues. Some of them are as below.
While Cardano is still a work in progress, there is no doubt that they are building one of the most scalable platform blockchains in the market. Cardano uses a revolutionary proof-of-stake algorithm called Ouroboros. Ouroboros is designed to scale as the network grows, which means that it can handle an unlimited amount of transactions. As the Cardano project gets better with each accomplished milestone, there is no doubt that it will eat into Ethereum’s market, as a launch platform for high volume Dapps.
EOS is one of the most scalable blockchains in the market today. It is designed to work with the same construct as an operating system. Its architecture means that EOS can scale to millions of transactions per second, and at zero fees. If last winner was to run on EOS, it would be smooth, almost unnoticeable in the grand scheme of things. As more developers begin to appreciate the power of EOS, it will eat into a significant part of the Ethereum market.
Though they are yet to release their main net, Zilliqa has the potential to play a major role in the Dapps market in the future. They are using a scaling technique known as Sharding, whereby the network is split into small nodes, which makes transaction processing faster. In some test runs, Zilliqa has hit over 2000 transactions per second without any issues. It can even achieve higher transaction per second since it is designed to scale as the network grows. Once they launch their main net, Zilliqa will without a doubt be a worthy competitor to Ethereum.
Is this the end of Ethereum?
Even with the rise of these more scalable blockchains, Ethereum is definitely not going anywhere. That’s because Ethereum developers are also working on scalability solutions of their own, including Sharding. It also has an unrivalled developer network and partners, especially through the Enterprise Ethereum Alliance. The only thing that will most likely happen is that, these newer projects will eat into its market share, and eliminate its dominance.