Ethereum (ETH) has been the dominant smart contracts blockchain for several years now. However in the last few months, we have seen the rise of several other platforms all promising to take this market from Ethereum. Their key selling point is always scalability, and transaction speeds. This might create the impression that Ethereum is about to lose its dominant position. However, a deeper analysis reveals that this is not as easy as many would like to believe. In fact, in the next few years, Ethereum could completely dominate the platforms market, and become the backbone of the decentralized internet. In case you doubt it, take a look at some of the reasons that place Ethereum way ahead of the pack.
First, Ethereum has a huge and growing developer network. At the moment, Ethereum (ETH) has more than 250,000 developers in its network, and that number is growing by the day. This is an advantage for Ethereum because with such a huge number of developers, the number of Dapps created on the Ethereum blockchain will also continue to be high, and a good number of them are guaranteed to transform the world. This success will attract more developers into the Ethereum blockchain further widening the scope of Ethereum in the Dapps space.
There are many Dapps platforms that may be faster and more scalable than Ethereum (ETH) but without this feedback loop, it will be impossible for them to ever eclipse Ethereum. As a matter of fact, many will be starved of developers in the long run, and die out of the market. It’s just how the real world works. In most cases, it is dominance, not technical advances that matter in the market. Just like there are many small smartphone companies that make better smartphones than Apple and Samsung, but nobody cares about them. The dominant position of these two giants ensures that no one will ever buy anything else.
Second, most of these other platforms that market themselves as Ethereum killers also have their flaws. The blockchain ecosystem is so young that it would be naïve to think that there is a perfect platform yet. If most of them were to be tested at the scale of Ethereum, they would crumble. The reason why Ethereum appears to be lagging behind the rest is because it is forthright about its flaws. But the Ethereum team is also very open about the solutions they are working on, to resolve these issues. For instance, the Ethereum team has been working on Sharding and Plasma as two possible solutions to the problems of scalability and transaction speeds. Once these are implemented, Ethereum could very easily kill the rest of the platforms market. That’s because it will have solved the problems they use as a selling point, and it already has the market share.
In the next few years, the platforms market could end up being 90% Ethereum, 5% NEO, while the rest share the remaining market. It won’t be surprising if Ethereum (ETH) is worth $3000 and above in the near future.