For the past 6 years, Ethereum has dominated the smart contract landscape and is arguably the only viable platform for launching decentralized applications (dApps) – driven by the large developer community and its advantage. ahead.
But over the past year, Ethereum’s limitations began to unfold, prompting its once ardent developer community to seek new horizons. Here, we take a look at 3 of the main reasons developers move from Ethereum to another platform.
Ethereum transaction fees
If you have been using Ethereum lately, you probably know that transaction fees are problematic.
Due to decentralized finance (DeFi) and the use of stablecoins on the platform soared in the last year, so too have the average Ethereum transaction fees – recently reaching over $ 25 and potentially several times higher. when the smart contract function is added.
In simple terms, developers in general are trying to build platforms and applications that are accessible to a wide audience, not just those who can pay an extra $ 25 per transaction.
As a technology designed to empower more people instead of a few, this high transaction fee is posing a significant entry barrier for users wanting to interact with the dApp.
To solve the problem, developers are now turning to more advanced platforms for much lower fees. Arguably the most prominent of these is Metaverse, a platform that uses a combined consensus system to keep fees to a minimum while maintaining speed.
Metaverse’s compatibility with Ethereum Virtual Machine (EVM) is another major reason developers are preparing for the release of the super-space mainnet.
Right now, interoperability is a buzzword in the crypto space. As more projects begin to realize the value of producing cross-chain applications, there is great incentive to develop bridges between blockchains – helping to provide a seamless experience and create a wave of interactive applications. new.
Although Ethereum has seen some improvements in this area, with the development of many token wrap protocols, layer 2 swaps platform and bridges, it still only provides interoperability. Restrictions with other blockchains.
But with true interoperability that promises to bring assets from one blockchain to another and allows for new, more powerful decentralized use cases, applications than ever before, developers begin to settle. their own problems – by applying the foundation built with interoperability at the core.
In recent weeks, the Substrate-based Polkadot blockchain has emerged as a major focus for these developers – as its new bridging and chain-forward technology makes it easy to build cross-chain applications without It is necessary to enforce identity among blockchains.
Likewise, platforms like Metaverse and Binance Smart Chain have also seen a large number of developers looking to build apps that are interactive thanks to their enhanced interoperability.
Double up on efficiency
A few years after Bitcoin launched, despite being very secure, Bitcoin’s consensus mechanism is also extremely wasteful when it comes to the use of energy.
While this wasn’t a big deal in its early days, when the Bitcoin mining network was small, it has become increasingly problematic in recent years, as energy use (and hence the impact on with the environment) comparable to a small country.
Ethereum is not much different. As one of the most widespread proof-of-work (PoW) mining networks currently in operation, Ethereum requires incredible energy to maintain the network’s security. And while Ethereum 2.0 is set to solve this problem with its transition to a mixed proof-of-stake and proof-of-work consensus system, it’s far from happening – and not yet ready. .
But developers often don’t have time to wait. Because of this, they started looking for more efficient alternatives.
In general, this search leads them to one of many proof-of-stake blockchains, which can reach consensus using a validator network – consuming less energy but achieving a similar level of security. .
Platforms built on Parity Technologies’ Substrate technology are currently gaining a lot of attention, due to their ability to combine proof-of-work security with proof-of-stake efficiency in a consensus mechanism. combined.