Friday , November 15 2019
Home / africa / The second largest crypto coin loses charisma as applications move elsewhere

The second largest crypto coin loses charisma as applications move elsewhere



[ad_1]

If Ethereum debuted in 2015, it was hailed as a successor to the Bitcoin savvy, because he offered tools that allow programmers to create applications that could execute transactions automatically, and not just serve as a medium of exchange.

Now almost four years later, the network is working Ether cryptocurrency losing market share. Long-promised projects touting better performance starts to deliver on competing platforms, and some startups using coins, such as the EOS Stellar and fundraising at the expense of primary offerings of coins, despite lingering concerns over regulatory sales.

"The simple reality is that until the last six months-to-nine, there was no other option but Ethereum," said Kyle Samani, founder of Multicoin Capital Management hedge fund in Austin, Texas. "Now there is."

The transition to other networks may be weighing on demand for the ether, which has been linked to a range in recent months. Investors do not always need to buy in ICOS, which are traditionally issued on the network. Online video game players should not depend on the air to buy in-game items – such as a weapon or even a virtual cat – now featured in many so-called distributed applications or dapps.

"Owning Ethereum options today that you think that the network will be in the future," said Travis Kling, founder of Los Angeles cryptographic hedge fund ikigai. "To the extent that the astral rival projects to gain traction with developers, users, with dapps built on the platform that will be considered by the market as the expense of the total cost of Ethereum, and this could have a negative impact on the price of the air".

Dapps share of the market has shifted already. Only 28% dapps users were Ethereum network as of January, compared with 100% in the previous year, according to tracker DappRadar. EOS accounted for 48% of active users dapps, while Tron has captured 24%, DappRadar found. Of the total number dapps, issued in January Ethereum it was yet to come, with a 40% market share, according to DappRadar. EOS and Tron for about 30% each.

"The reason why they got so much acceptance, these new protocols is that they offer a much higher rate of transactions per second," said Patrick Barile, COO DappRadar. "On the & # 39; the volume of transactions they can make much higher. This means that if you have DAPP, then you have a much better user experience. "

the average time a transaction confirmation Ethereum is about 13 seconds, although it has strengthened much higher. Some other networks, meanwhile, boasts a speed of less than a second, which allows for new applications such as action games, to feel like it happens in real time.

Ethereum co-founder of Acne Buterin recognizes the shift, although he says that this is not something to worry about.

"This is definitely a lost leadership in some extent, and I think that's just because, firstly, it is a kind of inevitable and unavoidable, because the astral really was the first general-purpose smart deal," said Buterin Unchained time podcast on Tuesday. "It's part of an inevitable part of the process."

Ethereum slow speed and high cost as a & # 39 is the reason why some startups release their chips elsewhere. Alpharetta, Georgia-based Ternio offered his coin, tern, on the Star last year, because it is necessary to quickly Stellar network, said CEO Ternio Daniel Gouldman. The company is about to go live with cryptographic prepaid debit card.

"If you're at a drive-through McDonald's, and wait for 20 minutes because Ethereum network is overloaded at the moment … With Stellar is fast and cheap," said Gouldman. "For what we are trying to achieve, it was a much better product." Operations working on stellar costs less than the astral deals, he said, making it much more attractive to users.

Ethereum may still be faced with his biggest challenge. Binance, operator of the largest in the crypt of the exchange world, plans to launch Binance chain for several months. Binance already lined up 10 projects, whose coins are currently working on Ethereum, but plans to migrate, said Zhao Changpeng, executive director Binance in.

"This year we will work very hard to manage the acceptance," said Zhoa.

Do not count Ethereum with just yet. The vast majority of tokens proposals still flock to Ethereum, where they believe they can raise the most funds. The project has a huge fan base and developer support.

"The fact is that actually shines about Ethereum with & # 39 is its vibrant community," said Hudson of Jameson, a member of the Ethereum Foundation, in a statement. "Everyone continues to build and support the cause, regardless of the market. All the recent progress in plasma and Serenity (Eth2) really talk about it. "

Developers are working to improve the capacity and speed of transactions on the network, with the main improvement is expected within a few months.

"Scaling Plan Ethereum with & # 39 is a long-term process and it is extremely difficult to perform, so that developers are trying other options," said Kling.

© 2019 Bloomberg L.P

[ad_2]
Source link