NEAR V/S Ethereum: Why are people ditching ETH?
– by Tanish Mittal
As we all know in today’s world, ETH (Ethereum) is a very known technology that’s being used to enable smart contracts and decentralized apps to be deployed on the web and Ether is the cryptocurrency token that is used in many cases, one of the very popular examples is Buying and Selling NFT in the marketplace.
But there’s one rising protocol that might take over ETH: the NEAR Protocol.
NEAR vs ETH
Both NEAR and ETH are Blockchain-based technology, both of them are used to deploy decentralized apps (dApps) and both of them almost have the same functionality.
But, some major differences between them make both of the technologies very different from each other.
If we compare both technologies in terms of Scalability, then there’s no doubt that NEAR has an upper hand here, because scalability is one of the main issues of the Ethereum network, which can only perform 15 transactions per second. Whereas NEAR uses a technique known as ‘Sharding’. Sharding and separating the entire blockchain into individual segments, or shards, ensures high scalability.
When you make calls to any blockchain tech to update or change data be it ETH or NEAR, the folks who manage the blockchain’s infrastructure incur some cost. At the end of the day, your request is processed by some machines somewhere, and the validators who run these computers pay a premium to keep them running.
These Blockchain tech compensates these people by charging transaction fees, also called gas fees.
ETH charges a very high gas fee, as it can only process 15 transactions per second, so the bigger the demand is, the higher the gas fee is.
However, NEAR’s gas fees are roughly 10 times lower than Ethereum’s. How is that you might be thinking…
Because NEAR can process more than a million transactions in a second, that directly impacts the gas fees.
So until we receive the ETH 2.0 update, NEAR is going to have an upper hand over ETH with faster transactions, low gas fees, and many more factors!