Ethereum (ETH), one of the most well-known blockchain platforms, is now in its third generation. Ethereum (ETH) popularized the term smart contracts. It houses an ERC-20 token network and provides a framework to build decentralized applications. It is second on the market cap charts, behind Bitcoin.
Digital Platforms
There are many digital platforms on the internet, all vying to take Ethereum’s second place and make it the most popular smart contract platform. We’ll be breaking down a few of them here.
Ethereum (ETC)
Ethereum Classic was created by a fork in Ethereum Blockchain, which created two competing chains.
A user used Ethereum’s plan for a venture capital fund to finance every future application. This led to the fork. This plan was known as the Decentralized Autonomous Organization, or DAO. It was essentially a complex smart contract. Token holders could vote on any app idea. If the idea was accepted positively, the funds were given to begin development.
A DAO code bug was discovered by a hacker who managed to steal $50,000,000 worth of Ether (Ethereum’s form of currency). This caused the Ethereum project to be in turmoil and sent its price plummeting. It is the largest hack in blockchain history.
Vitalik Buterin and Ethereum foundation proposed a hard fork. The idea was to render the attacker’s Ethereum blockchain worthless and to abandon it while the rest of community moved to the new one. This approach had the advantage that victims of hacks would receive the same amount of ETH (or technically DAO tokens) back as they originally put into the DAO.
This fork is causing some discord in the community. Some in the community thought it was absurd to have a hard fork while “code is law”. The faction that did not agree with the fork split off and became backers to the old, renamed “Ethereum Classic” chain.
Ethereum Classic is still functioning as an independent entity. It retains the original code of Ethereum, including the ability to run ICOs and host smart contracts, and all other aspects that go with it.
NEO
NEO is often called the “Chinese Ethereum”, due to the similarities between the people who use it. It is the first open source blockchain network to be launched in China. Both NEO as well as ETH provide a decentralized network and platform that allows smart contracts to be activated with no third-party interference. Both are great at this, but there are significant differences.
NEO is more scalable than Ethereum, for one. It can process more transactions simultaneously, which significantly reduces wait times for its users. Although Ethereum’s developers are working to expand the network’s reach, it isn’t able to process NEO’s 1,000 transactions every second.
NEO also supports multiple programming languages. Although Ethereum’s language (Solidity), is similar to JavaScript, users will still need to learn a new language to program in the network. NEO allows developers to use Java, C#, and other mainline languages to create smart contracts. NEO’s ease of access means that it will likely attract more developers as NEO grows in popularity.
NEO is coded to prevent random hard forks such as the Ethereum/Ethereum classic debacle. Soft forks can still be made, but hard forks cannot.
NEO coins cannot be mined. Instead, token holders receive NEO GAS, which is a payout of NEO coins. It can be received in any NEO Wallet that supports GAS.
Stratis
Stratis supports C#, and is compatible with Microsoft’s.NET Framework. It is a “Blockchain as a Service” platform that allows companies create their own decentralized applications. The company’s focus is to streamline the development process and ensure that new projects are unique and private.
To take advantage of this technology, companies won’t need to create a complex and expensive blockchain framework. Stratis does this for them. Stratis also offers smart contracts and will soon offer their first ICO on its platform. This puts them in direct competition with Ethereum.
LISK
LISK bypasses the usual barriers to entry in blockchain technology, such as centralized platforms and complicated new programming languages to learn. It runs on Javascript, which allows millions of developers to jump in. LISK is the platform that decentralized applications can run on, but it differs from Ethereum in a few ways.
LISK uses a sidechain that is paired with a Software Development Kit. This allows developers to create their own blockchain and application and link it to the main LISK Blockchain. This ensures that everything is secure.
Side chains are a smart idea as they operate independently from the main blockchain that powers all of the network. Side chains are independent from the main blockchain and do not impact the main chain. This allows developers to have complete control over their network, while still being protected by a stronger framework.
EOS
EOS aims to be the best cryptocurrency platform. EOS is a combination of the security and smart contracts and dApp support provided by Ethereum to create the ultimate scalable blockchain platform.
EOS plans to provide everything a decentralized application development team might need. EOS tokens can be used to pay for shared databases, authentication systems and cloud storage. With the provided framework, companies can create monetization strategies and service strategies for their customers.
EOS members can vote on whether applications are running correctly or if there are any changes to the source code. EOS is a community that allows people to approve of what is done.
Blocks are organized into “cycles”, which are sequentially verified. This reduces latency on the network, and keeps performance high. EOS tokens serve no other purpose than to be a stakeholder for developers and members of the community.
Waves
Waves is an innovative platform that allows developers to create tokens for any project that they can imagine. Waves also offers a decentralized exchange (DEX) that allows you to trade your newly minted coins with other coins on Waves. DEX uses an automated algorithm to place orders once terms have been met.
These custom tokens, also known as CATs, can be used just like any other cryptocurrency coin. KYC verification will be required for users who buy fiat currency, but crypto to crypto transfers can be done anonymously. It is arguably the most accessible platform to launch an ICO, especially with the decentralized exchange.
Tokens
Tokens can be staked using a leased proof of-stake system. This means that token owners can lease their tokens for full nodes that run the network. The more you stake, the more you can say you have in Waves. You can run a full Node if you have 10,000 tokens. This helps to keep the network secure and running smoothly.
Waves is also an ICO platform. They have had many successful token sales to this point. Waves is currently working on their Smart Contract language, which will be available later in the year. Waves aims to be a complete Blockchain platform by combining token creation, smart contracts, trading, and other functions.
Chainlink
Finally, Chainlink is a wild card. While it is not intended to compete with Ethereum, it has been developing technology called Oracles that could be the missing piece for all these smart-contract platforms. An Oracle is a device that can connect to the Blockchain with data from outside sources. Chainlink could make it possible to access all information on the blockchain, including stock prices, weather, bank transfers, currency conversion rates, and crash data from cars.
Chainlink’s greatest feature is not only the ability to provide external data, but also decentralizing it, so that you don’t rely on one point of failure or manipulation. Each node that provides the data will use multiple sources to verify it is correct. The operators of these nodes will receive the Chainlink token. This will provide an incentive to properly manage and provide the requested data.
Chainlink could be the company that finally connects the outside world and secures smart contracts on different blockchains if it succeeds, although this is not always possible.
Conclusion
Although Ethereum is the largest and most popular decentralized application platform, it doesn’t necessarily mean that it will remain so. As more people become aware of the power of decentralization, and the use cases for smart contracts, you can expect to see more companies enter this space and try to claim a piece.