Blockdaemon’s Ethereum Ecosystem Manager Freddy Zwanzger believes Ethereum will retain its leadership position in the crypto ecosystem in the coming years due to its utility as a smart contract platform and upgrades to the network following the merger.
Zwanzger spoke to Cointelegraph during the Ethereum Community Conference (EthCC) this week:
“It will continue to be a leader. I mean obviously the first and foremost smart contract platform, and that’s not going to change.”
Blockdaemon is an institutional-grade blockchain infrastructure platform that provides node operations and infrastructure tools for blockchain projects.
Blockdaemon staff also took aim at so-called Ethereum killers – competing tier-1 blockchains – that have tried to topple Ethereum from its leadership position, but failed:
“All the Ethereum killers of the past failed, and I don’t expect them to succeed at all.”
Crypto projects that have been singled out as Ethereum killers include Solana, Cardano, Tezos, and Polkadot, among others. Many of these blockchains offer lower fees and faster transactions, but have fewer active developers and some blockchains place less emphasis on decentralization.
To date, no one has been able to displace Ethereum from the number two position in terms of market capitalization. Cardano and Solana currently sit in the eighth and ninth positions, Polkadot is ranked 11 while Tezos is ranked 37, according to CoinMarketCap.
Zwanzger believes that the upcoming merger will propel Ethereum further and upward in terms of technology and price.
“There are so many good things in there, like environmental friendliness, [and] all kinds of things that are beneficial to many people. Staking will become more attractive, he said:
“It is proof of strength and commitment that the road map is materializing.”
The Ethereum merger involves transferring it from the energy-intensive proof-of-work (PoW) mining consensus to a proof-of-stake (PoS) model, and has been tentatively scheduled to be rolled out around September 19.
However, Zwanzger admitted that the big future challenge for Ethereum will continue to be scalability:
“The original Ethereum roadmap was focused on sharding, but that’s not so much the case anymore. Now we have a rollout-centric roadmap, so scaling via layer-2 solutions.”
Currently, the proof-of-work consensus model allows the blockchain to process 15 to 20 transactions per second (TPS), according to data from Blockchair.
A quantum leap in the number of transactions per second is expected sometime in 2023 when the Ethereum network introduces sharding.
Sharding is a multi-phase upgrade to improve Ethereum’s scalability and capacity by splitting the entire network into multiple parts to increase network capacity.
Sharding will work hand in hand with layer-2 solutions to further “supercharge” the scalability of the network.
Co-founder Vitalik Buterin has claimed after the cut that the network will be capable of transaction speeds of up to 100,000 TPS.