In previous years, many projects have come up aiming to claim the ‘Ethereum Killer’ status. One of these projects is TRON which has repeatedly attacked Ethereum via aggressive marketing stunts done by CEO Justin Sun. Based on the news magazine Bloomberg, Polkadot might have the ability to replace Ethereum in the long term.
Comparatively, Polkadot is a young project that officially shifted to the Mainnet in July 2020. Since that time, Polkadot has managed to attract many investors and has fought its way up the rankings to sit at position 8 of the biggest cryptos globally by market capitalization.
Gavin Wood, an Ethereum co-founder, is the founder of the Polkadot project. He previously worked as the Chief Technical Officer at Ethereum. Even though the two projects are interrelated, experts and analysts believe that they both have considerably different goals.
Ethereum is designed to give developers a way to program, execute, and then test their dApps using smart contracts. Polkadot, on the flip side, gives dApp developers the ability to develop their customized blockchain that can communicate with other ledgers efficiently. The developers can then decide on their own on how high the transaction fees are and how fast transactions should be confirmed.
Wood explained this strategy recently:
“We are going to see a lot of different innovative products that can’t exist in a smart contract environment. Game blockchains, ensuring gamers don’t cheat. Blockchains within consortia. They are difficult to deploy in a smart contract environment.”
The Managing Partner at Sparta Group, Kelvin Koh, also explained that in his opinion, Polkadot is not a majorly direct competitor of Ethereum. However, he said that there can be synergy effects:
“I believe in a multi-chain world inter-connected by bridges. Polkadot and Cosmos will not replace Ethereum. Also wouldn’t rule out chains like Near, Solana, AVA, TRON, and others seeing development activity.”
On the contrary, the CEO of Pantera Capital, Dan Morehead, thinks that Polkadot is a competitor to Ethereum. Currently having around 10% of ETH’s market capitalization, this project has a correspondingly huge potential. The CEO commented:
“Polkadot is only trading at 10% of the value of Ethereum. And our theory is that it has a much higher than 10% chance of being a competitor to Ethereum.”
Development On Polkadot Increasing Sharply
Though Polkadot continues to have fewer developers than Ethereum and Bitcoin, a new report indicates that developer activity has reduced at ETH and BTC and increased by over 44% at Polkadot. The report takes into account developments in the second quarter of 2020:
“Polkadot (+44%) and Cosmos (+15%) saw substantial developer activity growth. This increase is likely due to protocols abandoning proprietary chains in favor of battle-tested solutions in a post-COVID market with a reduced R&D budget. Polkadot, in particular, launched its main net at the end of May 2020, garnering increased interest from external developers.”
Currently, 253 projects are based on Polkadot, and they vary from stablecoins like Tether to the social networks. Based on data from the PolkaProject tracker, the number was below 200 at the start of September. Thus, a steep surge has been seen within a few weeks. Developer activity is a powerful metric that reflects the real value of a project, according to some industry experts.
But, it is quite challenging to finally assess whether Polkadot is an Ethereum killer and if the relatively young project will even replace or displace Ethereum in the long term.