Crypto fans recognize Ethereum as the leading altcoin behind Bitcoin. Crypto developers
however, recognize Ethereum as a network an increasingly large amount of people want nothing to do with.
While the rise of the decentralized finance (DeFi) industry has worked wonders for the coin’s price, the accompanying deluge of gas fees and slower transaction times poses an ominous sign for Ethereum’s place in a growing cryptocurrency ecosystem.
Slow Transaction Speeds Frustrate Crypto Users
Ethereum users understand transaction speeds can be expedited by adding gas to incentivize miners, a smart move during times of high network congestion. However, gas fees continue to rise with no end in sight across 2021, dealing a significant blow to the potential of ERC-20 projects to operate.
One crypto enthusiast reported a $74 gas fee for a $75 SushiSwap transaction in late February. Heading to UniSwap still led to a $37 fee.
— Ran Neuner (Non fungible) (@cryptomanran) February 3, 2021
Many developers express immense concern at Ethereum’s congestion, especially those who are working on cutting-edge projects or applications that provide time-sensitive services.
They are either forced to pay exorbitant gas fees or wait behind “a deluge of transactions to serve the latest craze, simply because it is attracting more users than your app,” notes Stuart Popejoy, co-founder of blockchain infrastructure firms Kadena.
Ethereum team members like creator Vitalik Buterin point towards second-layer solutions like Ethereum 2.0 as the antidote to issues regarding speed and scalability. Still, many are not as optimistic.
Delays Mount for Ethereum 2.0, With No End in Sight
While December 1st, 2020 marked the generation of Ethereum 2.0’s first block, the full implementation of the platform is not expected to launch anytime soon. Reviewing Ethereum’s latest timeline, outside estimates currently place full-scale launch no earlier than 2021-2022. Others, like Bitfinex CTO Paolo Ardoino, mused late last year a full transition could take three years.
According to blockchain software company ConsenSys, the launch of the Beacon Chain blockchain (which technically occurred in December 2020), should have transpired in 2019.
Xinfin, Tron, and Qtum are Making Moves
Xinfin’s Delegated Proof of Stake (XDPos) is an innovative solution that incentivizes XDC holders to stake across 108 master nodes. The protocol supports up to 2,000 transactions per second and lets nearly every Ethereum smart contract to run with instantaneous transaction confirmation. The project’s hybrid blockchain has resulted in great acclaim and attention.
Xinfin’s unique in the cryptocurrency world as the project focuses on liaising with governments to reduce global infrastructure gaps. The idea behind the project is to allow investors to bid and finance infrastructure projects in a seamless manner, instead of wasting time with paperwork and other bureaucracy when it comes to financing cross-border projects.
The Xinfin team believes the lack of government financing hinders the potential of many beneficial projects.
As institutions enter the blockchain space, they’ll endeavor to build around sustainable ecosystems. Sustainable infrastructure facilitates sustainable growth. That’s why the XDC Network addresses energy consumption on a protocol level. Stats below👇Let’s #keepitgreen #WeAreXDC pic.twitter.com/4xCUmoz0Op
— XinFin (@XinFin_Official) May 15, 2021
As a result, other blockchain projects are seizing an opportunity to serve as an effective solution to Ethereum’s woes. Tron’s main net launch back in 2018 led to a blockchain that achieved 2,000 transactions per second, already reaching speeds that far surpassed Ethereum.
With no transaction fees, Tron already stands on par with leading traditional payment processors like PayPal.
The open-source distributed ledger platform Qtum says its Unita blockchain protocol can exceed 10,000 transactions per second. The team notes the ledger’s SCAR specialized consensus algorithm works rapidly as it can change parameters on the fly.
Projects like Tron, Xinfin, and Qtum are making developers think twice about waiting for Ethereum 2.0.
As high gas fees and slow transaction times continue with no end in sight, the innovative nature of the crypto world might continue to doom Ethereum’s future prospects if drastic changes aren’t made to Ethereum 2.0’s timeline.