Ethereum (ETH)’s scalability issues have always been its major weakness. Recently gas prices have shot up due to an increase in Ethereum projects doing airdrops. This goes to show that Ethereum is still going to struggle if it were to be adopted at scale for Dapps development. The Ethereum team is also quite slow in coming up with solutions to this problem. This offers a good opportunity for newer, faster and more scalable blockchains to thrive. One high performance blockchain that stands to reap big from Ethereum’s inefficiencies is Tron (TRX).
One of the reasons why Ethereum slows down as activity increases is due to its low transaction speeds. Ethereum (ETH) can handle around 15 transaction per seconds. That’s incomparable to Tron, which can handle up to 1000 transactions per second, and it has the capacity to achieve even higher speeds. This means that no matter the level of activity taking place on the Tron blockchain, it cannot face the overload issues that are facing the Ethereum blockchain at the moment.
On top of that, Tron transaction costs are very low, as compared to Ethereum (ETH). This makes it highly cost-effective for developers looking to run smart contracts on the Tron blockchain. Ethereum’s gas prices can’t compare to Tron, even when transaction levels are normal on the ETH blockchain. As more developers get to realize this weakness of Ethereum, they will port their projects over the Tron blockchain. Tron has already created the infrastructure for them to shift with ease. They are doing so through the upcoming Tron Virtual Machine. The TVM is designed to be compatible with Ethereum, in order to make it easy for developers. There is really no reason why a developer would create a decentralized application on Ethereum and deal with slow speeds and high gas costs.
Besides, new projects need to do airdrops as a way of attracting investors, and grow value. The fact that an increase in airdrops can lead to an increase in gas prices, makes it inefficient for this critical function. Such projects that need to do airdrops as a marketing tool, will have to look into high performance blockchains to accomplish their missions, and Tron is one of them.
Therefore, someone invested in Tron (TRX) at this moment should be happy with their investments. Tron may not be at the same level as Ethereum today in terms of projects running on it, but its long-term prospects look good.
In the next few years, the number of projects running on Tron will rise exponentially, and will act as a catalyst to the value of Tron (TRX). It won’t be surprising if Tron (TRX) rises to over $1 within the year, based on an upsurge of projects alone. When you factor in other issues such as Tron’s capacity to create a decentralized internet, then its value can go even higher. It could easily rise to over $10 in the next 5 years or so.
Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!