Three serious competitors for Ethereum in 2021

Three serious competitors for Ethereum in 2021

Ethereum has become the block chain of choice for many developers of decentralised applications (dApp). Ethereum has by far the largest developer community, even surpassing that of Bitcoin. However, there are more and more serious projects that could put Ethereum in the shade. The three most promising Ethereum competitors under the microscope.

After several years of development, the first phase of Ethereum 2.0 has been launched. A major upgrade is planned for 2015 and the fact that it is far more difficult to change the engine in a moving vehicle than to build it from scratch speaks for itself. This is why many former ETH developers have taken the opportunity to develop Bitcoin Circuit their own block chain. Will Ethereum lose its first-mover advantage?

Cardano vs. Ethereum

Cardano (ADA) has been one of the most promising smart contract platforms in crypto space for some time now. The project was originally founded by the mathematician Charles Hoskinson, a co-founder of Ethereum. Charles Hoskinson left Ethereum in 2014 and subsequently created the profit-oriented IOHK Foundation.

The crypto currency ADA has been in the headlines more and more this year as Cardano introduced the Shelly-upgrade on his Mainnet. Shelly enables Cardano’s staking and, like Ethereum 2.0, is just one of many phases. Shelly is only the second phase of the ADA update and three more upgrades will follow. In the end, Cardano will be a scalable block chain on which smart contracts can also be programmed.

In addition, Cardano ultimately wants to operate an on-chain governance model in which every ADA holder should be able to participate. In the future, Cardano will probably be best suited for applications in the financial and organisational sector. This is because Cardano, unlike Ethereum, is programmed in Haskell. Haskell is a programming language that is particularly suitable for business applications and data analysis.

Tezos vs. Ethereum

Tezos was founded in 2018 and the foundation behind Tezos is located in Zug, the crypto-valley of Switzerland, as is Ethereum. Arthur and Kathleen Breitman developed Tezos. However, the early years of the Blockchain project were often marked by internal power struggles between the Breitmans and the Tezos Foundation.

Tezos works with a delegated proof-of-stake consensus mechanism, which it calls „Liquid Proof-of-Stake“. However, researchers have found that although Tezos does not have the same degree of decentralisation as Ethereum, it is more decentralised than many other DPoS block chains.

This is mainly due to the fact that Tezos has not set a limit on the number of nodes. This means that Tezos can become more and more decentralised as its size increases. Tezos and Ethereum 2.0 could therefore compete with each other in terms of security and decentralisation in the future. The main difference between the two block chain projects is the on-chain governance model of Tezos.

When the Breitmans designed the Ethereum competitor, their vision was that the Tezos platform could upgrade itself independently. The aim is to create a competitive block chain that can effectively develop from within. Each Tezos holder can vote on what should happen next with the platform.

In contrast, Ethereum has always had off-chain governance. In all probability, this will not change so quickly in the future. Nevertheless, it is unclear which system will prove to be superior to the other.

Polkadot, the ETH killer?

Gavin Wood is the co-founder of Ethereum. After working as Chief Technology Officer of the Ethereum Foundation for several years, he felt that Ethereum’s design was ultimately limiting. For this reason, he designed the Polkadot white paper in 2016. He chose the name Polkadot because it is a pattern with no beginning and no end that picks up the understanding of decentralised applications.

According to the cryptoanalysis company Messari, Polkadot is a block chain project that clearly stands out from the competition:

It stands out absolutely, both from a design point of view and from the size of the community around Polkadot.

More than 250 projects, ranging from Stablecoins to social networks, will be built on the network launched in May, according to the Polkadot Project tracker. This is an incredible increase. While developer interest in Bitcoin and Ethereum has declined, the number of monthly active developers on Polkadot has increased by more than 40 percent since the project was launched in May.

Instead of running apps via Smart Contracts running on a block chain as Ethereum does, Polkadot allows each app developer to create his own block chain. These blockchains are interoperable, which means that they can communicate with other blockchains. This makes it possible for developers to design their blockchains individually. For example, it is possible to determine how high transaction fees are or how quickly certain transactions can be confirmed.

Le Venezuela augmente les paiements de Bitcoin pour les importations en provenance d’Iran et de Turquie

Le président du Venezuela, Nicolás Maduro, affirme que le pays „utilisera toutes les cryptocurrences du monde“ pour contourner les sanctions américaines.

Selon un rapport d’enquête de RunRun.es, le Venezuela a l’intention d’accroître son utilisation de Bitcoin pour payer les importations afin de contourner les sanctions financières imposées par les États-Unis.

RunRun.es, qui a été fondé par le journaliste d’investigation vénézuélien Nelson Bocaranda, a cité des sources anonymes de la banque centrale du pays qui affirment que „les paiements aux entreprises de pays alliés tels que l’Iran et la Turquie ont été effectués en utilisant des bitcoins“.

On ne sait pas exactement en quoi consistent ces importations, mais la Turquie et l’Iran fournissent actuellement au pays de la nourriture et du carburant en échange d’or.

Le gouvernement du président vénézuélien Nicolás Maduro a fait la promotion de sa monnaie d’État, la cryptocarte „Petro“, prétendument garantie par le pétrole, comme moyen d’échange à la fois international et national depuis le lancement du jeton en 2018. Cependant, la mauvaise adoption du Petro a forcé le régime à explorer d’autres actifs cryptographiques, dont Bitcoin et Ethereum.

Maduro a commencé à menacer publiquement l’utilisation de Bitcoin et d’autres actifs cryptographiques comme moyen de contourner les sanctions en septembre, proclamant que son administration allait bientôt „utiliser toutes les cryptocurrences du monde, publiques, étatiques ou privées, pour le commerce intérieur et extérieur“.

Le 8 octobre, l’Assemblée nationale du Venezuela a adopté la loi anti-blocage, accordant des pouvoirs exécutifs supplémentaires pour contourner les sanctions imposées au pays, y compris pour autoriser la création ou l’utilisation de tout actif cryptographique comme instrument monétaire.

Le gouvernement vénézuélien a créé son „Centre de production d’actifs numériques“, un entrepôt minier de Bitcoin en novembre, alors que le pays a accru sa dépendance aux cryptocurrences.

La semaine dernière, le gouvernement vénézuélien a lancé son échange de cryptocurrences, soutenu par la Surintendance nationale de la cryptologie, pour permettre aux citoyens d’échanger des bolivars contre des bitcoins.

L’Iran a également mis en place une loi permettant d’utiliser le bitcoin pour payer les importations, dans un effort pour réduire la pression sur l’économie déjà fragile du pays.

Brett Tejpaul sees an explosion of capital from institutional investors

Brett Tejpaul, Coinbase’s Head of Institutional Coverage, revealed an explosion of capital from institutional investors.

Coinbase’s Head of Institutional Coverage, Brett Tejpaul, indicated that institutional investors‘ interest in cryptomonies has tripled. Indeed, since he joined Coinbase in April 2020.

Specifically, in an interview published on Friday with Elisabetta Bartolini of Heidrick & Struggles via the YouTube channel, Tejpaul detailed some of the main areas of growth in Coinbase.

In fact, Tejpaul came to Coinbase after 25 years in sales and trading in the traditional financial markets. He spent nearly 17 years at Barclays and 9 years at JPMorgan.

In a way, he explained that he joined Coinbase six months ago. And now he is responsible for growing the institutional adoption of cryptomoney, in sales, trading, custody and prime.

„We’ve had an explosion of activity. Since I joined in April, our institutional assets under custody were $6 billion. Today we are at over $20 billion“.

In short, Brett Tejpaul emphasises that institutional interest in the space is multiplying week by week.

In addition, he added that they are currently measuring the fresh capital coming into the crypto-currencies that are allocated mainly to Bitcoin in billions. Therefore, they have had an explosion of incoming capital from institutional investors.

How is Tejpaul being prepared?

In the same vein, Tejpaul explained how Coinbase has been preparing for the flood of institutional money into their partnerships. Also, how to deal with government regulation.

„In early summer we acquired an implementation platform called Tagomi. It radically transformed our ability to serve institutional clients“.

By this time, Shan Aggarwal, Coinbase’s Head of Corporate Development, said: „We will be integrating the Tagomi platform into our product suite. It will form the basis for the future of our institutional trading business.

Continuing the theme, Brett Tejpaul also commented to Elisabetta Bartolini that adding JPMorgan Chase as its banking partner and Deloitte as its auditor, has given Coinbase more compliance credibility.

Interestingly, both firms went through a one to two year period of due diligence. This was to ensure that they had the correct KYC (know your client) and AML (anti-money laundering).

Rising events

Tejpaul also highlighted the recent bullish events in crypto space. Starting with hedge fund manager Paul Tudor Jones, who said in May that he placed about 2% of his wallet in Bitcoin.

„Jones‘ decision was important. Because it served as a business card for other traditional macro companies, who are thinking of Bitcoin as a store of value.

He also mentioned MicroStrategy, which invested $425 million in Bitcoin Machine. And he made cryptomoney his main reserve asset of the Treasury.

Similarly, Tejpaul said he has seen direct results from PayPal jumping into crypto space. And he indicated that when these prestigious entities enter the space publicly, he encourages other institutions to follow their example.

To conclude the interview Brett Tejpaul said, „I have really unleashed a second wave of institutional adoption.

I leave with this quote from Benjamin Graham: „Successful investments are about managing risk, not avoiding it“.