Ethereum could be on the wane after three digital currencies have left the blockchain provided by the network for their own networks.
EOS, TRON and ICON have all split within a few weeks, citing hardware limitations as the main reason for their departures.
Ethereum may be the second biggest cryptocurrency by market capitalisation, but as new as Ethereum is to the market, even newer entities are finding the infrastructure too creaky and slow for their purposes.
EOS and TRON have a lot of similarities.
But while TRON has a lowish market price and has not seen any glitches on moving to its own main net.
EOS is picking up plaudits for technology but winning few friends as the coin’s constitution is ripped to tatters by infighting.
ICON switched to a main net from Ethereum in January and seems to have motored along quite nicely.
Ethereum shortcomings made clear
TRON swapped tokens on June 25 – boasting that the token burn was the biggest disposal of money in one go in history.
The TRON Foundation has committed to burning 1 billion TRX worth $50 million.
“Developing on Ethereum made the shortcomings of the platform clear. Network issues have been a longstanding, rendering Ethereum incapable of supporting the newest generation of decentralised apps (dApps),” said TRON CEO Justin Sun.
“Ethereum is also unable to effectively resolve community governance issues, limited by an authoritarian system dominated by the foundation and developer team.
“Ethereum users cannot leverage their tokens to vote and have a voice within the community. Ethereum’s archaic gas burn mechanism and high gas fees pose a significant obstacle for dApp developers, leaving them out in the cold.”
Failing the speed test
EOS released the first version of EOSIO blockchain software on June 2 and has been dogged with problems since.
The community has argued about a new constitution and rules for the coin, blocking 27 user accounts without offering a reason and pausing the blockchain to repair glitches.
The move was to speed up transactions. The VISA test which is generally adopted to measure blockchain transaction speed shows Ethereum can manage 15 transactions a second. The VISA system regularly copes with around 24,000 transact ions a second.
TRON, EOS and ICON simply had to move to speed up their networks to compete with non-blockchain applications.