Scalability, transaction costs, and other issues are some of the reasons some cryptocurrencies have developed as alternatives to Ethereum, the second-largest cryptocurrency.
Ethereum is a decentralized, open-source blockchain-based software with smart contract features. Ether (ETH), the second-largest cryptocurrency in the world, is primarily supported by Ethereum blockchain. The Ethereum blockchain struggles with scalability, high transaction fees, and network congestion. They attempted to address these problems with the Ethereum merger, but several cryptocurrencies have emerged as Ethereum alternatives.
This article will discuss the 10 best Ethereum crypto alternatives in 2022.
10 best Ethereum crypto alternatives in 2022
Here is a list of competing cryptocurrencies that aim to improve upon Ethereum’s present drawbacks.
Cardano
Cardano is a blockchain platform that was created using the Ouroboros Proof-of-Stake consensus algorithm, which validates transactions securely and at low energy costs. This platform was created to be a next-generation extension of the Ethereum concept with a flexible, sustainable, and scalable feature.
Ethereum and Cardano are frequently contrasted since both of their networks offer comparable services and were designed to serve as decentralized application platforms. The primary distinction at this time is that Cardano native tokens aren’t created using smart contracts, in contrast to tokens built on Ethereum. Instead, they utilize the ADA cryptocurrency’s own architecture to function.Â
It is a superior investment and also more inexpensive than Ethereum’s pricing due to its native architecture, which can possibly increase these coins’ security and lower transaction fees.
Solana
Solana is a platform for crypto-computing that combines proof-of-stake consensus and proof-of-history to increase transaction speeds. Time stamps are added to the blockchain during proof-of-stake block processing, which speeds up network operations. When compared to other crypto transactions, Solana users’ average fee per transaction is extremely low because they aren’t vying for block space to process transactions.
It is a superior substitute because it addressed the majority of the issues that the other blockchains are having. Solana handled both the high gas price and the scalability problem. The platform improved Users’ experiences by addressing Ethereum’s slow performance and expensive transactions.
SOL tokens are Solana native tokens and they are used to pay transaction fees.
BNB
The cryptocurrency token that drives the BNB Chain ecosystem is called BNB. BNB is now the native currency of Binance’s own blockchain, the Binance chain, which was initially based on the Ethereum network (ERC 20 standard).
Despite being the sector’s more recent blockchain, the BNB chain consistently outperforms Ethereum in a number of areas. BNB chain utilization is larger than ETH chain, even during a drop, due to BNB’s higher daily active addresses. The BNB chain had 10.4M total active addresses in January 2022, compared to 5.44M for Ethereum.
Polkadot
Polkadot is a network protocol that allows blockchains to exchange messages and conduct transactions without the need for a third party. This makes it possible to transfer data or assets across blockchains and to use the Polkadot Network to create decentralized applications.Â
The network employs a consensus technique based on proof of stake (PoS). Blind Assignment for Blockchain Extension (BABE), the protocol in use, is based on the Ouroboros.
The Polkadot token (DOT) is used by the Polkadot network for staking. This is how it verifies transactions and creates new DOT. It also serves as a governance token, giving holders a say in how the protocol will develop in the future.
Tezos
Tezos is an open-source blockchain that can carry out peer-to-peer transactions and operate as a platform for the deployment of smart contracts.
Users of Tezos may exchange value and interact with multiple applications directly and without friction through a decentralized network without the use of middlemen.
The native token of the Tezos blockchain is called Tez (XTZ). It is utilized on the Tezos platform to interact with dApps, pay fees, and secure the network through staking.
Zcash
Zcash (ZEC) is a cryptocurrency that focuses on privacy by allowing anonymous transactions utilizing powerful cryptographic technology known as zero-knowledge proof. It offers its users greater anonymity compared to other cryptocurrencies like Bitcoin.
The altcoin employs the Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (zk-SNARKs) to fulfill its goal of maintaining the privacy of all transactions
On the Zcash blockchain, as opposed to Ethereum, you may transfer and receive money swiftly and anonymously without running the danger of being tracked. In reality, the only information made public is the transaction’s date and time.
ZCash is an altcoin, a type of cryptocurrency that resembles Bitcoin in many ways.
EOS
EOS is a utility token that grants owners an equivalent amount of storage space or network bandwidth for usage in the blockchain network’s storage and other applications. It leverages delegated proof-of-stake consensus with graphene technology.
It runs decentralized applications and smart contracts and has a similar design to Ethereum. High performance, adaptability, security, and developer freedom are given top priority on EOS.
EOS is a cryptocurrency built to support extensive applications. EOS is completely free to send and receive.
Chainlink
Chainlink (LINK) is a cryptocurrency and technology platform that allows non-blockchain firms to connect to blockchain platforms in a secure manner. Link, which links off-chain data with on-chain data, provides an interoperability solution to promote blockchain integration.
In reality, Chainlink is based on Ethereum. Its purpose is to link the Ethereum blockchain to the outside world, making it accessible to organizations and businesses outside the cryptocurrency sector. As a result, both of these protocols complement one another and enhance the market as a whole.
Stellar
Stellar is a decentralized protocol built on open-source code. It has been created so that any financial system in the world can operate on the same network. The protocol has a number of security improvements above ETH that make it harder to attack.
Additionally, Stellar is an open network mostly used for holding and transporting money for payment processing. Users are not required to pay transaction fees to third parties.
The stellar token is called Lumen. It is traded on different cryptocurrency exchanges with the symbol XLM.
Avalanche
Avalanche (AVAX) is a decentralized blockchain network that offers smart contract capabilities. It is made to make it easier to use complicated blockchain platforms like NFTs, and dApps.
The blockchain utilizes the Proof-of-Stake consensus mechanism and is well renowned as the fastest smart contract platform. It was created to address many of the issues that Ethereum developers face.
Furthermore, Avalanche’s multi-chain design offers some of the lowest fees of any programmable network while still providing outstanding linear scalability for users and developers.
The native token of Avalanche is AVAX. It is a hard-capped, rare asset used to pay fees and safeguard the platform through staking.
Conclusion
ETH is the second-largest cryptocurrency in the world built on the Ethereum Blockchain. Ether has been faced with challenges that include scalability and high transaction cost.
Although Ethereum intends to address its flaws by making various improvements to the Proof-of-Stake consensus, rivals to Ethereum have benefited from the delay by attracting cryptocurrency users.
By introducing lower gas fees, quicker transactions, interoperable transactions, and user privacy, these Ethereum crypto alternatives have established a solution to address ETH’s problems.
