Welcome one and all, miners and bakers,
veteran stakers and crypto curious rookies -- welcome to the match-up of the season --
-- in the battle of the blockchains,
the nail biter of the year, the fight of the smart contract platforms --
It's Tezos versus Ethereum!
Let's meet our fighters.
Entering the cage, meet our decentralized juggernaut,
long regarded as the most popular smart contract platform -- Ethereum!
Some thought Eth couldn't be beat, but a worthy challenger has come on the scene,
some might call this fighter The Ethereum Killer --
That's inflammatory --
Hey, I'm not taking sides, but some have said it. Welcome the agile, adaptable,
super speedy Tezos to the ring!
I don't know about you, but it feels like this match-up could go either way to me.
That's how you know it's gonna be a great fight. Tezos has become more and
more of a substantial challenger to Ethereum's top-seated position in
the smart contract league. They both have some real advantages going for them.
Let's dig into those advantages while we let these fighters warm up.
Well, we gotta talk about decentralization, there's a clear advantage for Ethereum there.
That's true, Ethereum is considered the second most decentralized cryptocurrency,
coming in behind Bitcoin. Decentralization is at the heart of the blockchain ethos, because it
reduces the chances that any single organization can censor transactions or freeze accounts.
Hands down, if you want to build an application that can't be shut down, Ethereum's your pick.
Even the prominent Ethereum organizations do not have control over the network.
No, neither ConsenSys nor the Enterprise Ethereum Alliance are focused on controlling the network.
ConsenSys focuses on developing applications on the platform, the Alliance on industry adoption.
And that's been an incredible strategy for Ethereum's reputation and following. We'd
be remiss if we didn't point out the vast number of Ethereum's developer entourage.
Without a doubt. Ethereum's developer community is the biggest
of any cryptocurrency's, even 4 times larger than Bitcoin's.
Conventional wisdom is that the protocol with the biggest developer community prevails.
It's certainly no secret that Ethereum has enjoyed being the fan favorite.
That doesn't mean it's the winner, though. Tezos has found a way to avoid potential volatility with
its self-amending feature and clear on-chain governance. Most notably, this internal
adaptability mechanism means that protocol upgrades can be done without a hard fork.
Ethereum knows how contentious and divisive hard forks can be.
As does Ethereum Classic. So that's gotta have Ethereum intimidated.
If it's smart, yes. Tezos adopters know that there won't ever be a network
split. No danger of whales driving up the price in anticipation of a fork,
and then offloading en masse afterwards. Tezos' system is elegant and stable.
Elegance and speed are really what come to mind when we talk about Tezos. That gives
this fighter a strong advantage in the ring.
That speed! Tezos can process significantly more transactions per second than Ethereum,
precisely because it's more centralized. That's the tradeoff Ethereum has made in
being so decentralized -- it has a real scalability problem at this moment.
It's clear this is going to be a long fight. We're going to see these
two platforms go twelve rounds over the next few years. Don't expect a KO here.
Ethereum has to hope it can keep dodging those punches. It's slowed down by network congestion
and subsequently, high gas fees. Prohibitively high at times. What average person can spend
upwards of $10 for a simple transaction, and upwards of $100 for a complicated one?
Ouch! Tezos knows how to hit right in ETH's soft spots. They've found ways to keep their
gas fees low, and the Delphi upgrade in November 2020 reduced their gas costs by 75%.
That could very well lure a lot of projects
away from Ethereum. It's a big incentive to start building on Tezos.
But that incentive likely isn't enough to break up Ethereum's stronghold on Decentralized Finance,
or DeFi, products. Right now, Ethereum has the largest DeFi product suite in the world. Even
if Tezos attempts to build out its own DeFi ecosystem, it won't have the diversity of
interoperable applications that Ethereum has.
It's hard to overcome that advantage. Though it's worth mentioning that Tezos
development groups like StableTech continue efforts to draw that DeFi community in.
They just introduced wrapped ETH tokens that allow ETH value to
be transferred to the Tezos network. That could bridge the gap for them.
Regardless, Tezos has already attracted a lot of high value businesses,
especially in the luxury auto industry. The Automotive Solution Center has committed to
building a technological roadmap based on the Tezos blockchain. The
brands under that umbrella include Audi, Porsche, and Daimler Chrysler.
That's definitely some horsepower. But corporations
aren't the only ones who see benefits from Tezos.
Absolutely. Instead of miners, Tezos utilizes 'bakers; to validate transactions -- a
process that is done virtually on the network with Liquid Proof of Stake.
That means less overhead for the bakers, and ultimately less drain on the environment. It also
yields one of the highest returns on investment for staking coins in crypto. That's not nothing.
Sure, but realistically, it's really a toss up whether any of these advantages
can overcome Ethereum's massive developer and user base advantage and diversity of use cases.
I, for one, don't know where to place my bets so you decide who wins
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