Top Ethereum Killers to Consider in 2021

Navigating the field of cryptocurrencies can be confusing for people, especially where lesser-known options are involved. What is the difference between the well-known titan, Bitcoin, and the other cryptocurrencies that exist in the market? Ethereum is regarded as Bitcoin’s primary competitor, but it has a shaky history and there have been rumors that its climb upwards could come to a halt. In the last few years, there has been an influx of a huge number of cryptocurrencies. While not all of them are reliable and will last for the long-term, there are some new projects that could threaten Ethereum’s popularity.

If you are looking to invest in alternatives to Ethereum, here are some of the top options that you can consider in 2021:

Polkadot (DOT)

The first alternative that you can explore is called Polkadot and it is definitely the new kid on the block because it was launched in the market in 2020. At this time, DOT tokens are quite cheap and their claim to fame is the fact that its blockchain can be used for exchanging arbitrary data, rather than only specific data that are carried on other blockchains. This is undoubtedly impressive because it plays a role in how Polkadot can be transferred to other blockchains. The gist is that it makes it possible for DOT to be transferred in different ways and across an array of platforms. This project is a rather ambitious one and does have broad-spectrum applications.

It is possible to exchange the data loaded on DOT’s blockchain with private networks, and even to some public ones. This can be applied in a variety of fields and not only for currency trading. Therefore, an investment in DOT can turn out to be a broad-ranging one and not just limited to cryptocurrencies. Making an investment in DOT means that you are primarily investing in the technology behind it, which is quite similar to Ethereum.

Tezos (XTZ) 

Tezos is the next Ethereum alternative that investors can explore. XTZ is an open-source project that’s focused on users and allows them to weigh in on the direction of the blockchain and project governance and all for a buy-in of 8,000 tokens. The purpose of this user governance is to prevent any conflicts or forks in the currency and it should be able to retain its value in the long-run, with the adoption of technology by more and more people. Furthermore, the modularity, security, and scalability of XTZ is what makes it even more impressive. These things are important on their own, but when you put them together, it can be quite an achievement.

How does it work? The stakeholders of this project thought of the future due to which it was amongst the first that used a proof-of-stake mechanism instead of using the proof-of-work one, back in 2017. Nowadays, proof-of-stake is gaining popularity amongst the blockchains, as opposed to proof-of-work, which can be found in traditional blockchain currencies like Bitcoin. Users are rewarded by Tezos for making a contribution to the blockchain consensus with the proof-of-stake system. To put it simply, users are rewarded for helping maintain the stability and security of the network.

Cardano (ADA) 

One of the most prominent Ethereum killers is 2021 could be Cardano, as it was founded by Charles Hoskinson, one of the co-founders of Ethereum. Like Tezos, this one is also an open-source, proof-of-stake blockchain, but it has branded itself as a more academic project, with new additions and ideas needing a peer-review before they are adopted on the network. According to the theory behind peer-review, it will enable the creation of a more robust network that could be used for solving problems sooner, before they have the chance to become serious issues.

The philosophy behind Cardano is centered around reaching consensus and individual governance. Every token holder is provided a stake in the network and is given incentives to participate and vote in how the network functions. This comprises of two categories; a funding proposal (FP) is one and the other is Cardano Improvement Proposals (CIP). A dedicated application is used for voting on FPs and a GitHub repository is used for CIPs. Stakeholders can use these systems for making proposals regarding functions that are not part of Cardano (ADA) at the moment. 

Every vote needs a temporary payment of ADA for ensuring accountability and for funding successful proposals. ADA has a supply of 45 billion tokens and it is quite cheap. It is valued at just over $1 and is a great option for those who prefer direct democracy on a budget. 

Stellar (XLM) 

Valued at about half of $1 and another open-source project, Stellar can offer its user base the ability to create, sending and trading all kinds of money in a digital format. For instance, Mexican Pesos can be traded for US dollars. This project is quite ambitious, as Stellar has claimed that all of the financial institutions in the world can run on its network. The XLM network stays in-sync across devices thanks to blockchain technology. This is very similar to Polkadot, mentioned above, which is more of an investment in blockchain technology instead of a dedicated currency like Bitcoin. 

A token is also produced by Stellar, which is known as Lumen and small volumes of the token are used to process the actual currency transactions. For instance, you can create a digital representation of any currency like a Mexican Peso known as the Peso Token. Anyone depositing a US dollar on the Stellar network would receive a Peso Token. When the individual returns with their Peso Tokens, they would be exchanged for traditional US dollars. This allows people to form their own little Federal Reserve, only they get to decide what to back their token with. 

These are some of the alternative tokens and coins that investors can check out when they are looking to make a move in the crypto space. They just might prove to be the next Ethereum of the crypto industry. 

Leave a Reply

Your email address will not be published. Required fields are marked *