What are Ethereum Killers? A Deep Dive into 6 Key Projects

Ethereum is a decentralized, open-source blockchain platform that allows developers to build decentralized applications (dApps), and since its launch in 2015, it has brought significant innovations. But what are Ethereum killers, and how do they challenge Ethereum’s dominance?

Yes, Ethereum transformed the whole industry via smart contracts, but it came at a price. This is where Ethereum’s competitors like Solana and Avalanche step in, offering solutions to the problems it’s facing.

Nevertheless, Ethereum remains a key player with a market cap of more than $395 billion. If you want to keep a close eye on this race, platforms like Bybit and Binance allow you to track analyses and invest in the projects you believe are the best.

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What are Ethereum Killers?

In short, Ethereum killers are blockchain platforms that entered the crypto world to compete with Ethereum by creating solutions to its limitations, such as high gas fees, slow transaction speeds, and scalability problems. But is Ethereum really going to give up its position that easily?

Ethereum's long-haul use of the Proof-of-Work (PoW) consensus mechanism before switching to Proof-of-Stake consensus (for anyone that doesn't understand what that is, I'll get into it later), along with the increasing number of applications operating on the same layer, led to transaction speed (TPS) issues and rising transaction (gas) fees.

As a result, developers began creating new blockchain platforms, many based on Ethereum’s code but better - or so they claim.

Now, let's examine the list of Ethereum killers and their key features to help you decide who is a real rival.

Most Popular Ethereum Killers List

As you know, the competition isn't just between Ethereum and its rivals but also among themselves. Thus, to be at the top, these blockchains must excel in scalability while also bringing unique features to the table.

So, here is a broad list of Ethereum killers for you before getting into detail:

• Solana (SOL)
• Cardano (ADA)
• Fantom (FTM)
• Tezos (XTZ)
• Binance Smart Chain (BSC)
• Polkadot (DOT)
• Avalanche (AVAX)
• Polygon (MATIC)

Out of the list, I’ve selected the six most prominent ones, and I'll tell you all about what features make them stand out.

Solana (SOL)

Solana is considered one of the notable projects in the Ethereum killers list thanks to its speed. It was founded in 2017 with a vision of creating a scalable and decentralized blockchain.

It quickly gained attention after its launch in 2020 thanks to its new innovative consensus mechanism: Proof-of-History (PoH).

PoH acts as a network clock toward the Proof-of-Stake (PoS) consensus and arranges the order of all kinds of data. In other words, this mechanism puts a timestamp on every transaction that happens on the blockchain, lines and links them all. Thus, a transaction cannot be confirmed without the timestamp of the previous one.

Even though Solana operates as a Layer-1 blockchain, PoH minimizes the need for storage and bandwidth, making it highly scalable and allowing it to process thousands of transactions in mere seconds. Considering that Ethereum switched to the PoS mechanism in 2022, Solana had already addressed some of Ethereum's biggest challenges—scalability and transaction speed.

Cardano (ADA)

When evaluating what are Ethereum killers, Cardano stands out since it was launched in 2017 by Charles Hoskinson, one of Ethereum’s co-founders. They prioritized a scientific approach, using peer-reviewed academic research as the foundation for its development.

The goal was to create a more secure, scalable and sustainable network that is the future of blockchain technology as a third generation. For this purpose, they also brought some innovations to the ecosystem, such as Ouroboros.

Ouroboros refers to a variant of the PoS consensus algorithm that divides time into epochs and slots. Let me walk you through how it works briefly.

1. Each epoch consists of a specific number of slots, and each slot represents an opportunity to produce a block.
2. The Verifiable Random Function (VRF) algorithm randomly selects a leader for each slot based on token stake. Just like in PoS consensus, those who stake more tokens are more likely to be elected, but VRF ensures mathematical randomization.
3. The elected slot leader adds a new block to the blockchain. Other participants in the network verify this block. And with that, the transaction comes to an end.

Ouroboros also allows small token holders to indirectly contribute to block production and earn rewards by participating in staking pools. It's also a highly energy-efficient consensus, especially compared to Proof-of-Work.

Hard forks can cause network splits and create competing chains. However, Cardano addresses this issue with its hard fork combinator, enabling upgrades without splitting into different chains, unlike Bitcoin or Ethereum.

Even though it’s still a Layer-1 blockchain, an upgrade, known as Hydra, was released in May 2023 to form infinite scalability for this purpose.

Fantom (FTM)

​​Fantom is a Layer-1 blockchain launched at the end of 2019, and it has a unique consensus mechanism called Lachesis, which allows transactions to occur simultaneously on the blockchain. In other words, a validator does not have to wait for another one to finish its job, which significantly shortens transaction time. In fact, it often takes about 1 second to finalize a transaction.

This consensus is not only lightning fast, but it’s also low-cost in terms of gas fees, especially compared to Ethereum.

In addition to all this, Fantom is also EVM-supported. Meaning, it supports smart contracts on Ethereum and allows dApp development with these contracts via Opera. Many of its competitors do not do this at the moment, but time will tell whether this will be an advantage or a disadvantage.

Tezos (XTZ)

With its launch in 2018, Tezos is one of the first projects along with Cardano, on the list of Ethereum killers. Its most important feature is that it brought a new perspective to decentralization. Tezos, which draws its power from communities, is governed by people using a method called on-chain governance.

This way, developers can bring new updates without the need for hard forks. When developers want to add a new feature, they can put it to a vote with all users on the network, then test and easily implement it.

Tezos uses Liquid Proof of Stake (LPoS) as a consensus mechanism. We already know how PoS works, so what exactly does liquid represent here?

In a regular PoS model, validators can increase their chances based on the amount they stake, but they are still randomly assigned. Liquid, on the other hand, means that users can entrust their tokens to someone to stake.

Table: Comparison between PoS and LPoS

This brings a mutual benefit. Setting up your own validator nodes can be complicated and expensive. However, you can still earn by entrusting your existing tokens to someone, which also benefits validators because it is also possible for them to stake and earn more.

While this may sound a little unsafe at first, delegating is not mandatory, and you can cancel your delegation or give it to someone else at any time.

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Binance Smart Chain (BSC)

Binance Smart Chain (BSC) has been operating in parallel with Binance Chain since 2020. It was designed to support smart contracts and focus on decentralized applications. While BSC and Binance Chain are part of the same Binance ecosystem, their functions and purposes are different.

They have cross-chain compatibility that provides interoperability, which enables users to transfer assets between Binance Chain and BSC seamlessly.

In addition, Binance Smart Chain is also EVM-compatible, meaning developers can create and deploy smart contracts using the same tools and codebase as Ethereum. This way allows the operation of Ethereum-based dApps to BSC.

That said, Binance Smart Chain combines Delegated Proof of Stake (DPoS) and Proof of Authority (PoA) in one consensus, Proof of Staked Authority (PoSA), which enables fast block production and low transaction costs while maintaining security.

On the other hand, the platform's limited number of validators and their authorization process may raise concerns about the level of decentralization compared to other networks.

Polkadot (DOT)

Polkadot was launched in 2020 by Gavin Wood, who was initially one of the co-founders of Ethereum. This new project, which operates as Layer-0, aims to create an interoperable blockchain ecosystem, and for this purpose, it created a parachain architecture.

Parachain allows different blockchains to operate independently while still sharing security through the central Polkadot Relay Chain. By allowing different blockchains to communicate with each other, it supported not only interoperability but also scalability.

In order to support decentralization, it adopted on-chain governance, just like Tezos. This allows their users to decide on the future of the blockchain.

As for EVM compatibility, it does not offer the opportunity to work directly on smart contracts. However, EVM support is enabled through projects like Moonbeam, a Polkadot parachain.

Here is a summary of the top Ethereum killers for you:

Table: Most 6 popular Ethereum killers list and their key features

Now that you have a general idea about how top Ethereum killers solve the problems in the blockchain landscape, I also want to talk about why these challenges happen in the first place.

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What Makes A Blockchain Efficient?

As users explore blockchain networks, they're not just seeking any platform—they're looking for one that aligns with their goals and maximizes their potential. Factors like scalability and interoperability play a crucial role in making a blockchain more efficient, faster, and secure.

Let's discuss what Ethereum killers are bringing to the table and how they differ from Ethereum itself.

Decentralization

In decentralized blockchains, governance is not provided by a single server or authority, and this brings with it many security measures.

The absence of a single weak point prevents the network from collapsing, and transaction approval requires numerous participants (nodes), making manipulation very difficult.

Additionally, to distribute power, some of the top Ethereum killers, like Tezos and Polkadot, adopt on-chain governance and include users in the future of blockchain.

This not only supports trust and fosters a sense of belonging, but it also prevents disruptions by eliminating the need for hard forks on the technical side, ensuring smoother user experiences.

Scalability

Scalability refers to a blockchain’s capacity for growth in terms of transaction volume. In other words, it can be defined as the blockchain's ability to operate in the face of increasing transaction numbers without compromising decentralization and security.

Essentially, the scalability problem arises^[1] as the number of nodes and transactions in the blockchain increases. As more users and applications are added to the network, the demand for processing power will also increase. A scalable network should be able to accommodate this growth without slowing down or causing high transaction costs.

Many blockchain networks try to overcome this trilemma with different consensus algorithms, Layer-2 solutions, or sharding.

Modularity

Modularity is a layering method designed to make blockchain technology more functional and efficient. Its goal is to address the scalability problems, reduce gas fees, and increase transactions per second (TPS).

Monolithic (Layer-1) blockchains process all transactions on a single layer. In contrast, modular (Layer-2) blockchains separate processes into different layers, divided into data and transaction layers.

The former stores and records all blockchain transactions, while the latter is responsible for executing and verifying transactions. This significantly increases the number of transactions that the blockchain can process simultaneously.

Table: Comparison of Layer-1 and Layer-2 blockchains

That said, most of the top Ethereum killers operate as Layer-1, while Ethereum implemented Layer-2 solutions to bring modularity and increase scalability.

Consensus Mechanism

The journey began with Bitcoin and the introduction of the Proof-of-Work consensus. Today, it has evolved into various advanced mechanisms like Proof-of-Authority, Proof-of-History, and Proof-of-Staked Authority.

In PoW, voting rights^[2] are based on processing power. This means that the more processing power you have, the more voting rights you have. Even though the processes are quite long, laborious and costly, many blockchains, including Bitcoin, still use this method.

On the other hand, the PoS consensus allows users to stake their cryptocurrencies. Validators are selected randomly, but they can raise their chances of being selected by the amount they stake. This method increases transaction speed and reduces gas fees.

Table: Key features of different consensus mechanisms

In general, the top Ethereum killers adopt PoS-based consensus mechanisms, but each implements unique variations to address challenges like transaction speed and gas fees. For example, Cardano uses Ouroboros, while Tezos utilizes LPoS. As I've already covered in the list of Ethereum killers, these different consensus mechanisms offer innovative approaches, allowing each blockchain to compete in its own way.

Interoperability

Interoperability refers to the ability of two or more blockchains to communicate with each other, that is, to share information and data across networks.

When an application runs on a blockchain, it becomes dependent on that platform and cannot easily interact with or access information from other networks. The lack of interoperability can create challenges for users by limiting the flow of data between different blockchains.

To solve this problem, some blockchain projects in the Ethereum killers list enable Ethereum smart contracts on their own platforms, such as Binance Smart Chain.

How Ethereum Solves Its Limitations?

Ethereum, like any blockchain, inevitably faces challenges that prevent it from fully meeting the sector’s demands. First, let’s discuss some of the problems it struggled with and then examine how it solved them.

Limitations of Ethereum

Despite Ethereum's groundbreaking innovations, it faces several challenges that hinder its ability to meet the growing demands of the blockchain ecosystem. Let’s talk about the issues and then Ethereum’s act on how to get away with murder.

Scalability

Although scalability is largely considered a solved problem, it remains a challenge for Ethereum. In fact, it has been one of the key reasons why Ethereum has occasionally fallen behind in the race.

While smart contracts are an innovative breakthrough, they are also the main source of the scalability issue. EVM is not optimized for handling large-scale transaction throughput, which limits Ethereum’s ability to efficiently manage high volumes of activity.

As the number of users snowballed, Ethereum struggled to keep up. This led to a drop in transaction time and increased gas fees.

Transaction Per Second (TPS)

Although TPS is not the only way to measure scalability, it is a key metric for many users. It represents the number of transactions made per second, so the higher the TPS, the shorter the time spent on each transaction.

For a long time, Ethereum operated as a Layer-1 blockchain using the Proof-of-Work (PoW) consensus mechanism, which was a key factor in its slower transaction speeds. I can say that the adoption of smart contracts did not help this problem at all.

Imagine that there is a single employee in a company who answers phones, conducts customer meetings, and prepares reports. No matter how fast and talented this employee is, he can only do the job by focusing on one task at a time.

As the company grows, it becomes harder for the employee to keep up. Since many tasks need to be done at the same time, each transaction takes longer to complete, work accumulates, and as a result, productivity decreases.

On top of that, the PoW consensus added even more complexity. While effective for security, it inherently limited transaction speeds due to its resource-intensive nature. It requires significant time and energy, making each block creation a resource-intensive process, further slowing transaction speeds.

Gas Fees

Everything I mentioned above also applies to gas fees. After all, the cost of paying someone who is responsible for everything needs to be quite high, right?

As the workload increases, so does the fee required to process each transaction, which makes the network very expensive to use, especially during periods of high demand.

Interoperability

The EVM allows developers to build and deploy dApps using a common framework, leading a massive growth of the Ethereum ecosystem. However, this same reliance on the EVM creates interoperability challenges.

EVM is deeply integrated into Ethereum’s architecture. Thus, interacting with non-EVM-compatible blockchains can be difficult. While some blockchains like Binance Smart Chain (BSC) and Avalanche have adopted EVM compatibility, many other blockchain platforms use different architectures. This reduces the flexibility of Ethereum in a multi-chain environment.

EVM is deeply integrated into Ethereum's architecture. Thus, interacting with non-EVM-compatible blockchains can be difficult. While some have adopted it, for instance, Binance Smart Chain (BSC) and Avalance, many other blockchains use different architectures. This reduces the flexibility of Ethereum in a multi-chain environment.

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Solutions in Action

To address its long-standing challenges, Ethereum has implemented a series of strategic solutions aimed at improving scalability, transaction efficiency, and overall user experience. Shifting to Proof of Stake to adopting Layer-2 solutions has helped the network evolve and better compete in the fast-growing blockchain space. Below, we will explore the key steps Ethereum has taken, including:

• Switching to the Proof-of-Stake;
• Layer-2 solutions;
• The Dencun upgrade.

So, how were these updates implemented, and did they -or will they- solve the issues Ethereum has been facing?

Switching to Proof-of-Stake

In September 2022, Ethereum transitioned from PoW to the PoS consensus mechanism.

This shift not only reduced transaction fees but also decreased energy consumption. Because PoS significantly reduces the need for energy-intensive mining, this decision to transition from the PoW is seen as a major step toward reducing Ethereum's carbon footprint.

However, because the main reason for the high gas fees was not the Proof-of-Work consensus mechanism but rather the transaction density, there wasn't a big change in this part.

Layer-2 Solutions

Ethereum, like many other networks, faced the blockchain trilemma and prioritized decentralization and security over scalability, which led to challenges in handling large volumes of transactions efficiently.

As a result, the user experience was affected adversely. To address this, Ethereum began exploring ways to improve its scalability without compromising decentralization or security. Layer-2 solutions were perfect for the job.

L2 blockchains, as a secondary framework, communicate with L1, reducing the load on this main layer and thus allowing faster and cheaper transactions. In other words, while Ethereum remains a Layer-1 blockchain, it has adopted a modular approach by integrating Layer-2 solutions.

That said, with L2 solutions, Ethereum’s scaling challenges are slightly solved. That said, since these solutions are not exclusive to Ethereum, its contenders like Solana and Tezos have also adopted similar methods. In fact, thanks to the additional innovations they’ve brought, they are still able to process transactions faster and cheaper.

The Dencun Upgrade

The Dencun upgrade launched in March 2024 with the primary goal of enhancing the efficiency of Layer-2 solutions.

It is essentially a combination of two upgrades: "Deneb" (for the execution layer) and "Cancun" (for the consensus layer). Together, these upgrades aim to enhance the performance of the Ethereum network, especially in terms of gas fees.

For this purpose, they started using the main innovation of the Dencun upgrade. This new transaction type optimizes data storage, significantly reducing transaction costs on Ethereum's Layer-2 networks.

As you can see, Ethereum is also working nonstop just like its competitors, trying to find solutions to its own weaknesses as well as the industry's general problems. Even though the competition is fierce, it looks like Ethereum is not planning to give up its place anytime soon.

Future of Ethereum VS Ethereum Killers

While Ethereum continues to develop Layer-2 solutions to solve scalability problems, rival projects such as Solana and Cardano are competing with faster and more cost-effective transactions.

Estimating the winner of this competition will mostly depend on what Ethereum killers are doing regarding innovations and how each platform adapts to user demands. The new features offered by Ethereum 2.0 and other blockchains will continue to shape this competition.

However, even though the pie is very large, it still seems possible for everyone to get a slice.

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Conclusions

Now, I think you have a clear vision of what Ethereum killers are really capable of and their role in pushing the blockchain ecosystem forward. These projects aim to solve scalability, gas fee, and speed issues, offering innovative technologies to improve the user experience.

However, the question remains: are there really any potential Ethereum killers? To be honest, to me, it seems unlikely. Yet, the combined efforts of Ethereum killers could gradually take over the dominant stand. To stay updated on this competition, I recommend using platforms like Bybit, Binance, and Kraken. In addition, following daily crypto news or subscribing to a newsletter is also a good way to stay in the loop with everything.

That said, the blockchain industry is very dynamic, so how well these technologies are adopted will play a key role in determining the future of all projects. I guess we’ll have to wait and see what Ethereum killers are doing next!

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. D. Khan, L. T. Jung, M. A. Hashmani.: ‘Systematic Literature Review of Challenges in Blockchain Scalability’;

2. W. Metcalfe.: ‘Ethereum, smart contracts, DApps’.