Ethereum, The ICO craze of 2017 and The Platform Wars

photo source: https://www.ethereum.org

What is Ethereum?

What are the problems facing Ethereum?

  • Proof of Work is expensive and archaic
  • Transactions per second (tps) is very slow with a mere 15 tps
  • Smart contracts are written in Solidity and don’t lend themselves to formal verification
  • Fundamental changes to the chain are handled through hard forking, which can lead to numerous problems within the community and disrupt the network effects that are formed over time.
  • Scaling solutions and sharding remain yet to be fully deployed

Ok.. Ethereum has first mover advantage and will do well regardless

Evolve or Die.

First mover advantage

The ICO and Exuberant Crypto Craze of 2017.. Revisited

image source: https://blockchain-trust.com/cryptocurrency/ico-craze-of-2017-visualized/

Exuberant optimism

photo source: https://hype.codes/top-failed-ico-2017

Aftermath

Conclusion

Where We’ve Been and Where We are Headed

Where we’ve been

Where we are headed

The Platform Wars

image source: https://dzone.com/articles/getting-an-insight-of-blockchain

Tezos (XTZ)

image source: https://tezos.com/

So what is Tezos?

  • Self-amendment: Allowing the network to upgrade itself over time without having to hardfork and cause a divide in community, alter stakeholder incentives and disrupt the network effects that are formed over time.
  • On-Chain governance: Where stakeholders in Tezos can particpate in the governing protocol, allowing for a formal and systematic procedure for stakeholders to reach agreement on proposed protocol amendments.
  • Decentralized Innovation: Proposed amendments to the protocol by stakeholders will include payments to groups or individuals to improve the protocol, furthering innovation and decentralizing the maintenance of the network.
  • Smart contracts & Formal verification: Tezos offers a platform to create smart contracts and build Dapps that cannot be censored or shut down. Unlike Ethereum, Tezos facilitates formal verification to prove validity of smart contracts.
  • Proof of Stake (PoS): Unlike Ethereum, Tezos utilizes PoS where participants provide the necessary computational resources to keep the network running. This is less costly compared to PoW and unlike other PoS protocols any stakeholder can participate in the consensus process and be rewarded for contributing to the security and stability of the network.
  • Delegation: A security deposit is required to participate in the consensus process. The consensus process relies on an honest majority for its security and thus will penalize any dishonest particpants to the point of losing their deposit. But, will be rewarding to honest behavior.

ICON (ICX)

image source: https://oracletimes.com/reasons-for-which-icon-icxs-current-price-is-irrelevant-as-the-coin-boasts-enormous-potential/

What is ICON?

Community Initiative ICA & HX57

Conclusion

--

--

--

Writer at wmckenzie.com, Tezos Commons, student.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

It’s time to stop worrying about peg

Bitcoin Goes above USD 18,000, high since December 2017, What’s Next?

Celsius 20$ sign-up bonus and all active promo codes for 2020!

Beyond Bitcoin: Strengthen The Blockchain Consensus

This week in Blockfolio Signal — February 15th, 2019

Trittium — Weekly Report #51

People Are Needed Urgently to Work in the Crypto-Currency Field With a Salary of $2,000!

Stampede / Reserve Updates: Credit Redemption Overflows

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
William McKenzie

William McKenzie

Writer at wmckenzie.com, Tezos Commons, student.

More from Medium

PFP Projects on Tezos — Ottez

PartyFi’s community exclusive crypto-trading competition — PartyWars —  is underway.

What is cosmos?

Stakin Bi-Weekly Newsletter Vol. 45