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Ethereum Virtual Machine (EVM) Compatible Blockchains - Poised For Growth?

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Agr8buzz
@agr8buzz
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Ethereum with it's $40B in total value locked (TVL) is looking like a sitting duck ready to be slaughtered by competitors offering lower fee's and lower friction.

EVM compatible blockchains that we're lurking in the shadows are now coming for their share of capital!

When it comes to expanding on a peer to peer protocol allowing it to function as a server back end or virtual machine to power decentralized apps (Dapps) Ethereum is king.

First mover advantage has gone a long way in allowed the blockchain (ETH) to acquire users and capital with it's various offerings and use cases. However ETH has failed to scale and as a result has left the door wide open for competitors.

Advantage is a large dev pool and brand equity but the disadvantage is that competitors will ultimately do a better job and deliver a superior product.

What is Ethereum Virtual Machine?

The Ethereum Virtual Machine (EVM) is a powerful, sandboxed virtual stack embedded within each full Ethereum node, responsible for executing contract bytecode. Contracts are typically written in higher level languages, like Solidity, then compiled to EVM bytecode. -https://www.bitrates.com/

Really a brilliant piece of tech that allows for running powerful Turing complete programming on top of a decentralized network. It can described as a separation between machine code (The code that runs our Dapps) and the processes running on a network host machine.

  • Each node in the network runs an EVM instance.
  • The EVM is Turing complete (capable of performing advanced computational function).

Ethereum Virtual Machine explained by a programmer:

https://www.youtube.com/watch?v=GPoze5RmDVU

Copy Paste Use Cases

Here's where things are starting to get interesting, as more and more blockchains are emerging that are EVM compatible. These new blockchains are attempting to solve the problem of high transacting fee's and slow speeds (30 transactions per second) of ETH 1.0.

That and the network is operating near capacity which compounds the issues.

Ethereum Network Utilization currently as 98.75% for May 10 2021

Entrepreneurs love problems because this presents an opportunity to enter the market in an attempt to solve said problems.

That's why it's difficult to be first, and it almost always appears to be a trade off between creating massive brand equity and having competitors knocking at your door with a faster and cheaper product.

Being EVM compatible means that developers are able to port their existing Ethereum based projects over to additional blockchain, and with this comes the uses cases, the users, and their capital!

Which Blockchains Are EVM Compatible?

With this said here is the current lineup of EVM compatible blockchains that will start to steal market share away from Ethereum if they haven't already which is the case for BNB.

The following blockchains are EVM compatible:

  • Binance Smart Chain (BNB)
  • Matic Network (MATIC)
  • TomoChain (TOMO)
  • RSK Network (RSK/RBTC)
  • xDAI Chain (xDAI/STAKE)
  • TRON (TRX)

BNB was the first blockchain to really attack Ethereum and steal away it's users amassing a whopping $50B TVL in under 2 years. Their secret sauce is obviously the brand equity they've built by operating one of the worlds largest crypto exchanges while continuing to innovate in the space.

Which of these EVM compatible blockchain will be next to onboard developers, their use cases, and create ecosystems? Your guess is as good as mine but I expect one or two of these competitors to have staying power in the space.

Ciao for now,

@agr8buzz

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