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Murky Waters May Lay Ahead for Ethereum Will Solana or SYScoin step in?
Ethereum is currently the number two crypto with an impressive ecosystem being the original blockchain that took crypto to an all new level it days could be numbered or it's growth maybe reaching its cap and a few market leaders also share this view.
Blockchains are limited by their scalability or in easy terms how many transactions they can process at anyone given time and for Ethereum this has been a constant issue as the network has continued to grow in popularity its networks have been congestion leading to high transaction fees.
You might be thinking why can't Ethereum or other blockchains just add more nodes so they can process more transactions but unfortunately increasing nodes may sound like a solution but it actually slows the process even further. This is due to each and ever node needing to process each and every transaction to verify what is being requestion resulting in further slowing of the network source.
Ethereum 2.0
Ethereum 2.0 has been flouted as the network upgrade that will increase scalability for the Ethereum network but the key word there is increase. Ethereum 2.0 is only going to scale Ethereum up to 100,000 TPS per second source. Now this doesn't mean the network stops it is how much it can approve per second and each transaction after 100,000 goes to the next block in the que and considering Ethereum's current TPS is something like 25 - 30 which is why GAS fees are expensive and transactions require wait times unless you bid big than a miner will approve you sooner.
Too Little, Too Late
For Ethereum the upgrade could be a situation of "Too Little, Too Late" and as we have seen previously here Ethereum's slow speed parachuted Terra (LUNA) Network into 2nd in Decentralised Finance with Ethereum being the top holder. With the majority of projects on Ethereum being decentralised finance unless they pick up their pace we can see others closing in on the market and as the saying goes Time is money, money is time.
Solana tipped to close in on Ethereum
When it comes to speed and a functioning ecosystem there is one blockchain already leading in this field and that is Solana. Solana has for some time been promoting its high powered Proof Of History blockchain with speeds of up to 65,000 TPS source. But as we recently learned the Proof Of History blockchain requires further development because a recent peak of 400,000 transactions per second caused Solana to self fork which the team was open and transparent about here.
Despite the project setbacks the Bank of America analysts are stating that Solana could be the future Visa of Crypto with its high speed and low fees source
SYScoin emergence
The other recent contender that is still gearing up is SYScoin which brings the best of both Ethereum and Solana by further advancing Ethereum's Enhanced Virtual Machine and creating the Network-Enhanced Virtual Machine enabling the network to reach 210,000 transactions per second and by Q3 2022 once Validium is launched the network is stating it will be able to handle 4 million transactions per second Source.
Ethereum is in real trouble over the next 12 months with more chains emerging that can do what it can but faster but as we know in crypto the strength of a project is in its community and Ethereum founder Vitalik does have a good knack of keeping the community sold on Ethereum.
However, Blockchain gaming is just around the corner with 2022 being tipped as the year of GameFi which will require a significant amount of computing power and transactions. Will there be a blockchain fast enough in time for the arrival of block chain gaming. Or will Blockchain gaming require part decentralised and part centralised?
Besides gaming if decentralised finance is to continue to grow and an addition few million people join the network what ever network they decide to join will need to be able to host them and not crumble. This is a core reason why Terra (Luna) Network rose to 2nd place with its cheap and fast transactions which enable people to trade rapidly and affordably.
One thing is certain though 2022 will bring more people to cryptocurrency and while Ethereum has it's current community that continue to follow Vitalik the question on everyone's mind is, can he continue to grow it?
What are your thoughts? Will Ethereum start to decline if it can't reach an acceptable balance between speed and fees?
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