Digital asset manager Grayscale has published a report on smart contract platforms comparing the Ethereum (ETH) blockchain with the best and worst parts of New York.

The report looks at Granddaddy’s smart contract network of Ethereum in comparison to the latest competing blockchains such as Solana (SOL), Avalanche (AVAX), Polkadot (DOT), Cardano (ADA), and Stellar (XLM). The report comes after the company launched a cryptocurrency fund dedicated to smart contract platforms other than Ethereum.

In the Digital Cities section, Grayscale analyzed Ethereum, Avalanche, and Solana. The company compared Ethereum to the Big Apple, noting that both share similarities in terms of their status:

Ethereum is like New York: it’s big, expensive, and crowded in some areas. However, it also has the richest app ecosystem, with over 500 apps worth over $100 billion, more than 10 times more than any other competitor. Clear.”
“Users and developers are relieved by the fact that Ethereum will likely continue to focus on innovation and application fluidity given the size of the community and the amount of capital embedded in the network’s smart contracts. The L2 solution is like a comparable polygon. To a New York skyscraper: It’s expanding through construction, says the report.

The company continued to suggest that users migrating to competing blockchains are like moving to a cheaper city due to rising gas prices and network congestion on Ethereum due to the massive demand for decentralized financial services (DeFi) and non-breeding tokens (NFTs). During the past two years.

“With Ethereum fees starting to drop to $10 per transaction, smart contract platforms such as Stellar, Algorand, Solana and Avalanche have seen a significant increase in daily transactions on the network,” the report says.

Grayscale describes Solana as Los Angeles, noting that it is “a different network that is structurally faster and focused on different uses,” such as order books on a network like Mango Markets that require high transaction speeds and low fees to operate.

Solana’s architecture is based on a different consensus mechanism that prioritizes speed and lower costs, but at the expense of more centralization – rather than scaling across L2 chains, Solana manages transactions through a fast L1 chain. It performs about 2,300 transactions per second per second. The report stated that March 15, 2022.

Avalanche has been compared to Chicago in that the economy is similar to New York but has a smaller network, “transactions are cheaper and less crowded, and development is more central.”

“Game-specific subnets like Crabada and partnerships with companies like Deloitte should offer more differentiation from applications on other networks and help Avalanche build a distinct identity going forward,” Grayscale wrote.

Related: Shades of Gray prepares for legal battle with SEC over Bitcoin ETF

Regardless of the comparisons, Grayscale highlighted bullish use cases for smart contract platforms in the future, with the company pointing to DeFi and the future Metaverse segment in particular:

“The combined market potential of both Defi and Metaverse applications has the potential to exceed the current $2 trillion market value of the entire digital asset market in our view.”
“Smart contract platforms are the operational layer on which Defi and Metaverse applications are built and used for transactions, ultimately creating value for the core as users collect native tokens for a fee,” the report says.

Source: CoinTelegraph