Opinion: Ethereum is congested, is there an opportunity for other public chains?
Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley)Crypto Valley Live (ID: cryptovalley)
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As Ethereum is moving towards 2.0, the explosive growth of DeFi in the summer has caused the Gas fee on the platform to skyrocket. If there are some scalable public chain platforms that can surpass Ethereum, then now is the best time. Although everyone is talking
ethereum killer", but none of those platforms were as successful."Why is this so? Most people think it is the first-mover advantage and network effect of Ethereum. Other platforms believe that they are still in the early days and have not yet entered the zero-sum game state. Highly anticipated protocols like Polkadot and Dfinity have either just launched or are about to launch mainnet, so there is still a lot of "game" to be played before we declare any "winners". This "game" is important because it sets the stage for mass adoption of our decentralized future.
If Ethereum is leading, by how much? The purpose of this article is to use a quantitative model, through different
Usage amount
Dimension weighs and scores the Layer1 smart contract platform. In terms of usage, I looked at the following aspects.
Developer Activity (25% weighting) – Indicates potential future use as the space is still new.
Transactions (15% weighting) -- Shows raw usage by 24-hour transaction activity.
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If you are interested in scoring methods, they are listed below. Each platform was awarded an index score from 0 to 100. To reach 100, the platform needs to have the highest score in each dimension. Below are the scoring results.
Not surprisingly, Ethereum is number one
While it’s no surprise that Ethereum is in the lead, it’s by how much. The protocol’s years of first-mover advantage and network efficiency have allowed it to build an impressive lead, scoring more than double that of second-place platform EOS. This tells me that Ethereum needs a lot of time to be surpassed, so that it can be given enough time to launch Ethereum 2.0.
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Cardano
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Klaytn
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Most people think of Ethereum, EOS, and then TRON as the leading protocols for Dapps. But who is Klaytn, and how can this platform have the same score as the better-known TRON? First of all, the two platforms have the same score of 15, which is nearly 6 times lower than that of Ethereum. But Klaytn has a huge number of daily active Dapp users (22,300), which is very close to Ethereum. Klaytn is a platform created by South Korean company Kakao, which runs a large number of chat applications and cryptocurrency exchange applications on this protocol.
The performance of the five major platforms in each dimension
Dapp activities (50% weight)
Views on Dapp activity
In my opinion, Dapp activity is the most important indicator, which is why I give it 50% weight (25% for the number of Dapps, 15% for daily active users, and 10% for the number of contracts).
Ethereum has an absolute lead in the total number of Dapps activities, and the weighted score is about 2.5 times that of the second place EOS.
The number of daily active users of each App of EOS is very high, indicating high user stickiness.
Dapp liveness metrics are hard to come by - most info comes from Stateofthedapps and Dappradar. However, out of the roughly 29 protocols I analyzed, I could only find reliable Dapp information for 11 of them.
As we get more reliable Dapp metrics on emerging platforms like Cosmos, Polkadot, Cardano, and Solana, they will obviously rise with higher index scores.
Developer activity (25% weight)
The activity of developers in September 2020 according to the statistics of Santiment
Perceptions of developer activity
I give dev activity second only weight to dapp activity (25%) because it is a good leading indicator of future platform usage in a race that is still in its early stages.
Interestingly, Cardano has the most developer activity, considering it went live in the summer and doesn’t have the high profile of projects like Dfinity, Polkadot, and Cosmos.
The top five are well-known protocols that have only recently launched. It will be interesting to see if these platforms displace competitors such as TRON, EOS, and Klayton in the top 5 rankings.
Number of transactions (15% weight)
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20-hour trading volume on September 29, 2020
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Views on Trading Volume
Most of the data comes from Blocktivity.info. Since they didn't have data for all the protocols I needed to evaluate, I supplemented it with information from the Coin metrics community API.
Market capitalization (10% weight)
view on market capitalization
While I don't think market capitalization correlates much with platform activity, it does indicate interest in the platform with native token demand. That's why I only give it 10% weight.
Although they only recently launched their mainnet, Polkadot has the second-highest market capitalization after Ethereum, which bodes well for potential future growth.
Similar to Cardano; it launched in the summer and doesn't have any live Dapps that I know of, but their token price makes it the third highest market capitalization protocol.
Scoring methodology and data sources
As with any model, there will be some degree of subjectivity in terms of weights. My model puts more emphasis on the amount of dapp activity on the protocol, because in my opinion a smart contract platform needs to demonstrate that the community cares about its general computing power. If they just want to transfer Token, there are many Layer 1 protocols that only focus on this.
Let's take a look at each dimension and its respective weight.
The design and data source of my model
