Will the cryptocurrency Polkadot (DOT) threaten Ethereum? Explanation of functions and purposes
Typical Ethereum killer includes Cardano (ADA), Polkadot (DOT), EOS (EOS), TRON (TRON), Binance Smart Chain (virtual currency is BNB) and so on. Polkadot (DOT) is the virtual currency that is said to be the largest Ethereum killer. In Ethereum, demand related to DeFi and NFT is increasing, and a large number of transactions on the network often cause high fees and network congestion. Blockchains such as Ethereum and Bitcoin have a mechanism in which transactions that pay more fees are preferentially taken into the block and processed (remittance). Ethereum’s block capacity and block generation speed are finite, which motivates large investors who want to trade faster to raise commissions. In this way, the current Ethereum has a problem to be used by a large number of users, and there are situations where users are flowing to another platform. These constraints are also known as scalability issues.