The crypto crash has left wall street giants and retail investors alike asking themselves whether bitcoin really will stand the test of time (and tech).
Introduced to the world in 2008, Bitcoin becomes more outdated by the day as the 2nd and 3rd generation blockchains continue to innovate.
Many traders and analysts are now predicting Ethereum will continue to outperform bitcoin to the point where it will “flip” the market share.
Bestowing upon itself, what I have coined, “the crypto crown”.
Nobody can predict the future, especially not in the volatile landscape of crypto, however, looking toward the next 5 to 10 years there are a handful of clear contenders who may “flip” bitcoin for market share dominance.
But who are they? What are their objectives? And why might they one day inherit the crypto crown?
What is a 2nd / 3rd generation blockchain?
A first generation blockchain is merely a ledger recording data such as transactions with the ability to do little more.
Second generation blockchains introduced more functionality.
Rather than just being a form of currency, they could now become an ecosystem with which applications interact.
Third generation blockchains managed to solve the scalability issues of its predecessors by introducing alternatives to proof-of-work, such as proof-of-stake.
They also created an even wider array of functionality by adding cross chain solutions and developing more efficient and secure smart contracts.
- 3rd generation blockchain
- Founded by Charles Hoskinson, co-founder of Ethereum
- Most popular proof-of-stake blockchain
- Most scalable blockchain
- Has much broader focus than the fintech scope of many cryptocurrencies
- Already inked deals with African countries to begin integration with government and industry, adding a layer of legitimacy in an industry where it is seldom found
- 2nd generation blockchain
- Founded by Vitalik Buterin
- Has a head start on all other smart contract enabled blockchains so most businesses who have wanted to utilise blockchain before this year had to go with them
- Seen to have longevity and huge unrealised potential because of Ethereum 2.0. Which could solve its scalability issues and chronic high fees
- Most widely used blockchain for token creation and NFTs sales
- 3rd generation blockchain
- First to use proof-of-history
- Boasts very low fees
- Has the capability for the most transactions per second by far. (It is capable of 50,000 TPS which becomes even more impressive when compared to VISA’s 24,000 and Bitcoin’s 7!)
- 3rd generation
- Not truly decentralised
- Exceedingly more popular alternative to Ethereum for dapps because of its lower fees
- Cheaper than Ethereum with many of the same protocols and utilities
- 1st generation
- Elon Musk, a name synonymous with doge at this point, has stated he will dedicate his vast resources to improving Dogecoin into a 3rd generation blockchain
- Its meme status has given Doge extensive brand recognition and attention compared with some of its more worthy counterparts.
Two factors that must not be overlooked
- A refitted Gen 3 Dodge with increased functionality could become a major competitor
- Cute logo
Whilst it is too early to call who will come out victorious or if bitcoin will even be usurped at all.
We can safely say that blockchain world is paving the way toward the future and one, if not all these companies will be taking us there.