Upcoming Ethereum 2.0 Compared with live Algorand 2.0

in Project HOPE4 years ago

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There are no doubts that ethereum is the market leader when we compare it with other similar blockchain. There are few reasons for that as the project came earlier than any other project, and this is also true that ethereum has opened door for new possibilities in cryptocurrencies, but when it comes to current technology then it’s also true that ethereum is outdated, that’s why ethereum is coming with ethereum 2.0 . But if we compare current ethereum with any other competitors blockchain then it’s clear win for competitors. There are so many projects which are working to replace ethereum but in the crowd I see Algorand which has continued to grow without making any aggression towards ethereum. They have launched the feature which is planned for ethereum 2.0 which is still not live, that’s why in this post I am going to compare upcoming ethereum 2.0 with live algorand 2.0.

There are various topics which can be compared between both the blockchain. But before we began let’s have a look over what Algorand 2.0 & Ethereum 2.0 are…..

Algorand 2.0 

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Algorand 2.0 is the major blockchain upgrade which is completed in the past, which open so many new possibilities when someone is looking over algorand as this upgrade makes blockchain compatible for Asset creation which can be layer 1 or even an private asset or it also offers CBDC (central bank digital currency) which can be topic to talk in an separate post, Algorand 2.0 is also offering atomic transfer and so many other things are changed with the upgrade if you want to read more about the changes which has been done then you can look over here What is ALGORAND 2.0 

Ethereum 2.0 

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Ethereum 2.0 is a major upcoming change in ethereum blockchain which will change ethereum blockchain in so many ways. The major thing which is going to change in this protocol is shifting ethereum’s proof of work PoW concept to proof of stake PoS which will eventually give ethereum more stability compared to current level. There are few more changes are going to be done in this which you can find here :- Things going to change in Ethereum 2.0 


As we have seen what both blockchain are aiming let’s compare both of the blockchain with their features in upcoming ethereum 2.0 & in live algorand 2.0 



Staking 

Stacking is one of the main features of the blockchain when we are going to compare them, as of now this is not available on ethereum but as it is planned in ethereum 2.0 we will compare this feature also,

Staking on ethereum 2.0 

As this protocol is not yet implemented on ethereum be don’t have so much knowledge about this but still there are so many article on the about this topic this one the major change which is going to take place in ethereum 2.0, but this is going to be like normal PoW as we are seeing at this time miners will stake ethereum to mine it and they will get rewards. Till now we know that miners have to stake 32 ethereum to mine ethereum which is really a big number. Staking rewards will be near about 4-5 % on ethereum 2.0. If you want to know more about staking on ethereum 2.0 then go through this article:-Staking on ethereum 2.0

Staking on Algorand 

There are so much different when we compare staking in between these blockchains as algorand has there own Pure PoS which is unique when we compare it with other blockchain which are PoS blockchain, pure PoS means in simple like- if anyone wanting to participate in the Algorand network, they can signal that intent by flagging an account with algos as a participant. This is unique features which is not available in PoS they also give staking rewards if you are holding your ALGOs in there official wallet as well the current APR they are offering is about 6%. If you want to know more about staking on Algorand then go through this post :- Algorands pure proof of stake 


Creating an asset


Both blockchain are compatible for creating an asset in the blockchain which is an powerful tool on both the blockchain but when it comes to comparison then there are several things you should know about both blockchains

Creating assets on ethereum 

There is no doubt that ethereum is first to introduce asset creation on the blockchain and that’s why ethereum becomes market leader, but since that ethereum model is becoming old and need upgrade, but it seems there nothing going to change on this topic in ethereum 2.0 it’s is going to shame as it was before. As till now what I have known. So when you decides to create an asset on ethereum then there are so many ways to do that like creatinig an ERC-20 token over ethereum blockchain which is really famous in blockchain industry but there are several more types of token which can be created on ethereum blockchain like ERC-720 and many more each one has unique and different use cases. But creating any type of token on ethereum blockchain costs ethereum which can vary based on which type of token you are creating but definitely they are not cheap. 

Creating an asset on Algorand 

Algorand becomes compatible for creation of assets after the protocol upgrade 2.0, and there are so many things which are introduced in this upgrade regarding asset creation, there are so many types of asset creation options like fungible, non-fungible, & restricted fungible, restricted  non-fungible asset which give so many option to choose algorand. Fungible assets are most famous like ERC-20 famous on ethereum. Algorand is also providing tools for CBDC’s which is great when governments choose to develop on algorand there is one example in algorand when Marshall Island chooses algorand as there partner to work on CBDC you can get more about this on this article:-Marshall Islands to Power World’s First National Digital Currency with Algorand and SFB Technologies

Transaction:-  speed & fee 

As both the blockchain has so many use cases transaction speed & fees become so important when we choose any of the blockchain to develop with,

Ethereum 2.0 

There is clear indication that there will be improvements in transaction speed of ethereum in upcoming upgrade according to sources they are claiming very high transactions per second, but at this point  there speed is 32 transaction per second , but real figures can't be predicted until they will show there testnet result which is still to start, 

And on other hand when we talk about transaction fees on ethereum then I don’t think I have to tell you how high they are at this time but it’s also said by vitalik that it is going to decrease dramatically in Ethereum 2.0. If this happens then it is going to take defi at another level because the biggest problem for Defi on ethereum is transaction speed and fee of the blockchain. 

Algorand 

Algorand is officially offering more than 1000+ transaction per second at this time and take only 4.5 seconds for one transaction done which is far more better than if we compare this with ethereum at this time, if we talk about future then algorand is also under testnet and they says that testnet result are really big & when we talk about transaction fee on algorand then they are really low when we compare it with ethereum which is about 0.001 ALGOs which is really low or negligible in terms of price which is only 0.0003 cents. 



Stability & Security 

As these blockchains are big names in the industry security and stability become major things for both the blockchain, so how much these blockchains are stable & secure will be compared, 

Ethereum 2.0:- security & stability 

One of the major factors why ethereum is going to PoS is also includes security concerns as technology is advanced, but we can’t predict how much secure ethereum is going to be after 2.0 protocol but it’s already so much secure compared to normal protocols outside blockchain, as ethereum is heavily used security concern increased but it’s looks like they will achieve ideal security in near future, but when it comes to stability then there is huge concern on this topic because we have seen ethereum hardfork which leads ethereum classics which can be also possible in near future which make an stability level low for the ethereum blockchain. 

Algorand 2.0 :- stability and security 

When it comes to security it is as secure as ethereum is going to be after 2.0 as it’s is already using Pure PoS which makes algorand blockchain really an secure blockchain out there when we compare it with other similar blockchains, as algorand also makes an point that they are hardfork Proof means there will be no hardfork of algorand which will lead new coin so the stability concern is so low when we compare it with ethereum and other similar blockchains.




Conclusion 

I’m not not saying that Algorand or any other blockchain is better than Ethereum; this post is just a comparison between Ethereum 2.0 which is coming soon & the blockchain with already those kinds of features Algorand. This post is also not financial advice, make your own research before investing in any project. 

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Algorand and etherium seems to be a bit similar in one way or the other but it seems Algorand team are really doing a great job to make Algorand more utilized and competitive to every other blockchain tech.
Thanks for sharing this great post with love from @hardaeborla and I hope you have you have a great day ahead ❤️💕❤️💓💕

Yes algorand is doing really an great job.

Staking ETH would need 32 ETH so not all of us can afford this even though it sounds like something really profitable. On the other hand, 1 Algo is about US$0.33 so its price is more affordable actually.

Yes you are write