Welcome one and all, miners and bakers, veteran stakers and crypto curious rookies
— welcome to the match-up of the season — — in the battle of the blockchains, the nail biter of the year, the fight
of the smart contract platforms — It's Tezos versus Ethereum! Let's meet our fighters. Entering the cage, meet our
decentralized juggernaut, long regarded as the most popular
smart contract platform — Ethereum! Some thought Eth couldn't be beat, but a
worthy challenger has come on the scene, some might call this fighter
The Ethereum Killer — That's inflammatory — Hey, I'm not taking sides, but some have
said it. Welcome the agile, adaptable, super speedy Tezos to the ring! I don't know about you, but it feels like
this match-up could go either way to me. That's how you know it's gonna be a
great fight. Tezos has become more and more of a substantial challenger to
Ethereum's top-seated position in the smart contract league.
They both have
some real advantages going for them. Let's dig into those advantages
while we let these fighters warm up. Well, we gotta talk about decentralization,
there's a clear advantage for Ethereum there. That's true, Ethereum is considered the
second most decentralized cryptocurrency, coming in behind Bitcoin. Decentralization is
at the heart of the blockchain ethos, because it reduces the chances that any single organization
can censor transactions or freeze accounts. Hands down, if you want to build an application
that can't be shut down, Ethereum's your pick. Even the prominent Ethereum organizations
do not have control over the network. No, neither ConsenSys nor the Enterprise Ethereum
Alliance are focused on controlling the network. ConsenSys focuses on developing applications on
the platform, the Alliance on industry adoption.
And that's been an incredible strategy for
Ethereum's reputation and following. We'd be remiss if we didn't point out the vast
number of Ethereum's developer entourage. Without a doubt. Ethereum's
developer community is the biggest of any cryptocurrency's, even
4 times larger than Bitcoin's. Conventional wisdom is that the protocol with
the biggest developer community prevails. It's certainly no secret that Ethereum
has enjoyed being the fan favorite. That doesn't mean it's the winner, though. Tezos
has found a way to avoid potential volatility with its self-amending feature and clear on-chain
governance. Most notably, this internal adaptability mechanism means that protocol
upgrades can be done without a hard fork. Ethereum knows how contentious
and divisive hard forks can be. As does Ethereum Classic. So that's
gotta have Ethereum intimidated. If it's smart, yes. Tezos adopters
know that there won't ever be a network split. No danger of whales driving up
the price in anticipation of a fork, and then offloading en masse afterwards.
Tezos' system is elegant and stable. Elegance and speed are really what come to
mind when we talk about Tezos.
That gives this fighter a strong advantage in the ring. That speed! Tezos can process significantly
more transactions per second than Ethereum, precisely because it's more centralized.
That's the tradeoff Ethereum has made in being so decentralized — it has a real
scalability problem at this moment. It's clear this is going to be a
long fight. We're going to see these two platforms go twelve rounds over the
next few years. Don't expect a KO here. Ethereum has to hope it can keep dodging those
punches. It's slowed down by network congestion and subsequently, high gas fees. Prohibitively
high at times. What average person can spend upwards of $10 for a simple transaction,
and upwards of $100 for a complicated one? Ouch! Tezos knows how to hit right in ETH's
They've found ways to keep their gas fees low, and the Delphi upgrade in
November 2020 reduced their gas costs by 75%. That could very well lure a lot of projects away from Ethereum. It's a big
incentive to start building on Tezos. But that incentive likely isn't enough to break
up Ethereum's stronghold on Decentralized Finance, or DeFi, products. Right now, Ethereum has the
largest DeFi product suite in the world. Even if Tezos attempts to build out its own DeFi
ecosystem, it won't have the diversity of interoperable applications that Ethereum has. It's hard to overcome that advantage.
Though it's worth mentioning that Tezos development groups like StableTech continue
efforts to draw that DeFi community in. They just introduced wrapped ETH
tokens that allow ETH value to be transferred to the Tezos network.
That could bridge the gap for them. Regardless, Tezos has already attracted
a lot of high value businesses, especially in the luxury auto industry.
Automotive Solution Center has committed to building a technological roadmap
based on the Tezos blockchain. The brands under that umbrella include
Audi, Porsche, and Daimler Chrysler. That's definitely some
horsepower. But corporations aren't the only ones who see benefits from Tezos. Absolutely. Instead of miners, Tezos utilizes
'bakers; to validate transactions — a process that is done virtually on the
network with Liquid Proof of Stake. That means less overhead for the bakers, and
ultimately less drain on the environment. It also yields one of the highest returns on investment
for staking coins in crypto. That's not nothing. Sure, but realistically, it's really a
toss up whether any of these advantages can overcome Ethereum's massive developer and
user base advantage and diversity of use cases. I, for one, don't know where to
place my bets so you decide who wins in comments. Smash that like
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