ETH is the most popular decentralized application platform, and one of the most popular cryptocurrencies. With Ethereum 2.0 launching soon, it’s only getting stronger.
But recently, the competition has become very hot in the crypto space. Other blockchains such as TRON (TRX) are claiming to be “Ethereum killers” and target its place at the top of the crypto market.
But will TRX or any other decentralized app (dApp) platform achieve this? Let’s see whether Ethereum is in danger of being dethroned and if ETH to TRX is a smart trade.
What Is Ethereum?
Ethereum is a blockchain that can run smart contracts and decentralized applications. These technologies are the foundation of Web 3.0 and what crypto enthusiasts insist will be the core of the internet.
Ethereum was the first ever smart contract platform, and it has used this first-mover advantage to become by far the most popular. Ethereum has the most users, the most developers, and the highest number of dApps in the world.
However, it does have some limitations. Ethereum is based on the Proof-of-Work consensus protocol, which has severe scalability issues. Ethereum can only handle around 30 transactions per second.
The solution to this problem is planned to come with the launch of Ethereum 2.0, which will use the newer Proof-of-Stake consensus protocol. However, this mechanism is yet to be proven at scale.
ETH is the currency that powers the Ethereum network. If you want to make transactions on the network, you need to have ETH.
So, ETH is a utility token, unlike BTC. ETH is currently trading around the $1,000-$1,100 mark. ETH is considered the most reliable crypto investment after Bitcoin, with high growth potential.
Here’s a collection of expert price predictions for ETH for the next five years:
As you can see, ETH is expected to grow steadily in the long-term, which makes it a sound investment option.
What Is TRON?
TRON is another smart contract and dApp platform that intends to overtake Ethereum. TRON attempts to do this using a different consensus mechanism than ETH.
It uses the Delegated Proof-of-Stake (DPoS), which boasts a significantly higher transaction per second rate than ETH (2,000 transactions per second). However, it does come at the cost of greater centralization — not everyone can be a TRX miner as it is with ETH.
TRON has other problems with centralization, too. Its co-founder and CTO left the project as it had become too centralized. He said that it had strayed too far from its original mission.
The TRON ecosystem is still quite strong, but nowhere near the level that Ethereum is at right now. Since its launch, the TRON technology has been improved upon again by more smart contract platforms. It remains to be seen if TRON can stand out in this ecosystem.
TRX is the native currency of the TRON network and is currently priced at around $0.065. It is currently ranked #13 by market cap. Interestingly, TRX was initially released as an ERC-20 token on the Ethereum network, then migrated over to the TRON network.
TRX has technology support for private transactions for those that want to make an anonymous crypto swap.
Here are the expert predictions for TRX:
The price forecast for TRX looks a bit uncertain as expert opinions on its growth potential clearly differ.
Should You Swap ETH for TRX?
The developers and community of the TRON network certainly hope to overtake Ethereum one day as the most popular smart contract platform. However, so far this hasn’t looked likely to happen.
TRON now neither has the first-mover advantage of Ethereum nor the superior technology advantage of the newer smart contract networks. It will be very difficult for TRX to overtake ETH given these problems.
For the time being, Ethereum remains the king dApp platform. However, this doesn’t mean it will dominate forever in all ways. It’s highly likely that other smart contract platforms will take some market share in specific niches. Buying some amount of TRX is a good way to diversify for unforeseen events in the crypto market.