The idea of “survival of the fittest” applies to many areas of the financial industry, especially when it comes to competing companies. Blockchain and cryptocurrency are some of the most competitive fields at the moment, and they often compete with each other as well. Blockchain technology is on a fast train to progress, running at a much faster pace than cryptocurrency. This speed could easily surpass cryptocurrency, though the projects that help this issue could be Ethereum, Tron, and Zilliqa.
The Ethereum platform has been around for some time, though there has been many security concerns and scalability problems over time. The most famous security breach has been the Parity incident, which will live in infamy as the coding scam that let hackers run off with $30 million in ETH. This is a prime example of the concerns that Ethereum needs to address to survive, especially considering that the platform can only perform 25 transactions a second.
Luckily, despite these issues in the security, Tron and Zilliqa seem to have been working to fix it, though their programming languages are quite different. While Zilliqa maintains a Scilla programming language that was designed to work with smart contracts, Tron uses Java as the programming language instead. The Tron network exceeds Ethereum’s scalability substantially, processing 2,000 transactions per second, though the six shards make it possible to handle 2,828 transactions per second.
Now is the time when Ethereum will have to decide if they want to evolve with the needs of the industry, or if they plan to let their platform squander. Three solutions to their scalability are presently in the works – Plasma, Raiden, and Sharding. With sharding, transactions are divided into small groups that are easier for the blockchain to manage and process, which is exactly what Zilliqa is presently doing right now.
Raiden is similar, but the transactions are scaled off-chain for processing on a separate channel. By remaining off-chain the nodes can created bonded payment channels between the transactions, which is a cheaper option. Fees only have to be charged when the transactions are forwarded.
Plasma is a little different. This process lets several smart contracts be a part of a larger whole. Each sidechain developed will have their own rules, but they still send the necessary information back to Ethereum.
Many investors still have faith in the strength of the Ethereum network, which could be, in part, due to the way that they are approaching the scalability that needs attention. Other major crypto firms have mirrored these sentiments. The co-founder of Circle, CEO Jeremy Allaire, said,
“One of the things that really catalyzed the [cryptocurrency] market last year was actually that Ethereum, in particular, kind of got to a place where you could build apps on top of it. You could issue new tokens on top of it; you could create new kinds of financial contracts, using the smart contracts technology. It also catalyzed a lot of competing infrastructures to Ethereum.”
Even though the industry is nearly a decade old, blockchain technology and cryptocurrency are still evolving to meet the needs of consumers. Faster options are needed, and developers keep delivering what consumers need to stay interested. Still, only the fittest and strongest projects will have the bullish tendencies needed to thrive as long as they can.