According to the staff of the analytical division of the Binance cryptocurrency exchange, the problems of scaling the Ethereum blockchain may lead to the loss of a dominant position in the field of tokenization.
In the report
it is said that Ethereum is still the most common blockchain for issuing tokens, however, due to delays in confirming transactions and the high cost of processing them, token developers are increasingly turning to other blockchains.
Among the alternative options, analysts did not forget to mention the Binance Chain blockchain, which has better compatibility capabilities, higher bandwidth and has a built-in request matching mechanism for transfers.
Analysts also recommended paying attention to the Tron blockchain. Two projects from his ecosystem conducted their initial public offerings (IEO) campaigns on the Binance Launchpad platform. Among the advantages of the Tron blockchain stands out more efficient decentralized data storage and advanced applications in the gaming industry. Analysts believe that this will have a positive effect on the spread of technology among end users. The report provides information according to which more than 80% of the activity in the EOS and Tron blockchains is related to gambling. At Ethereum, this figure is only 31%. This can be easily explained, since Ethereum was used mainly in 2017 during the “ICO-mania” to raise funds for the creation of various projects, including payment systems, technical projects and so on.
The Ethereum blockchain still remains the leader in the number of tokens issued, however, according to Binance Research, most of them do not bear any benefit, but only load the network, which already has limited resources. This is again explained by the ICO hype in 2017, when projects raised money for the sake of raising money, without subsequently providing a product with practical application and a successful business model. However, Binance Research noted that the vast majority of the “promises” that were made in 2017 were not fulfilled due to the scalability problems of the Ethereum network. Analysts also mentioned other blockchains in which useless tokens are observed, such as EOS, Tron, NEO and Steemit, but their number is much smaller. Binance Chain, oddly enough, turned out to be the best blockchain in the number of tokens whose existence is justified by practical value.
The main problem of the Ethereum blockchain, according to analysts, is the high transaction processing fees. The figure in some cases can reach 30 cents. In addition, users cannot transfer tokens on the Ethereum network if they do not have ETH, which is charged as a commission. Some other blockchains, such as TomoChain and Binance Chain, lack this feature.
According to the report, Ethereum is still the second largest cryptocurrency and the most popular blockchain for issuing tokens, but competitors have a better position because they can analyze the pioneer errors and prevent them. According to Binance Research, in the future there will be a wide selection of blockchains with support for programmable transactions, each of which will have its own advantages and disadvantages.