While Ethereum is late in 2024, Graphite Network is debuting a high-performance L1 chain

As Ethereum lags behind with a 70% gain in 2024, emerging L1 networks like Graphite are stepping up, offering faster speeds, lower costs, and a trust-based blockchain ecosystem.

With the end of 2024 quickly approaching, Ethereum It is recording year-to-date gains of over 70%, significantly lagging other leading cryptocurrencies such as Bitcoin and SolanaWhich increased by 142% and 107%, respectively.

Bitcoin continues to dominate investor interest, benefiting from its strong deflationary structure and reputation as an efficient store of value. In contrast, Solana’s technical advantages, especially its speed and cost-effectiveness, make it the preferred choice for developers in the DeFi and NFT sectors.

Why will Ethereum perform poorly in 2024?

Bitcoin’s appeal lies in its fixed supply and carefully regulated inflation mechanisms, which provide unparalleled security, stability and predictability. On the other hand, Ethereum is facing challenges with its net issuance due to the significant decline in gas fee burn.

according to Latest results from CoinSharesHowever, the growth of layer 2 solutions like Arbitrum and Optimism has shifted significant activity away from Ethereum’s underlying layer 1 network. This shift has led to a significant reduction in ETH supply burning, undermining Ethereum’s once-lauded deflationary model.

In addition, other top-level languages, especially Solana, have moved forward with faster transaction speeds and lower costs, attracting a growing user base. As of October, the number of monthly active wallets on Solana has increased It reached 138 millionUp 245% since August. Along with this growth, Solana’s overall value has seen significant gains, 2.7% acquisition of Ethereum’s TVL flows year-to-date. In contrast, Ethereum has struggled, recording net outflows of $6 billion in 2024.

Apart from Solana, there is another emerging alternative to Ethereum that is making headlines with its recent launch in the market.

Improving speed and scalability on-chain: Graphite vs. Ethereum vs. Solana

Graphite mesh He submitted Its L1 blockchain platform, designed to handle large transaction volumes with a capacity of up to 1,400 transactions per second and confirmation times of less than 10 seconds, a performance that significantly outpaces Ethereum’s limited transaction speeds, which hover around 15-20 tps.

Graphite’s transaction model also maintains a clear fee rate, allowing users to predict their expenses in advance and avoid scenarios similar to Ethereum’s “gas bidding wars” during block closures.

Additionally, Graphite’s Ethereum-compatible virtual machines simplify the process of porting Solidity smart contracts to the network, allowing developers to scale their existing decentralized applications without the additional resources required to build on blockchains like Solana.

Why Graphite is not just another L1

Graphite uses the Proof of Authority (PoA) consensus model and the Polymer 2.0 algorithm, and thus relies on a network of trusted and authorized nodes to validate blocks. This approach significantly improves operational efficiency by reducing the power and computation requirements typically associated with traditional proof-of-work systems.

Graphite’s transaction model provides a passive income opportunity for entry point (transfer) nodes, a feature that sets it apart from other blockchains, where only resource-intensive validating nodes earn rewards. Transfer node operators will receive 50% of transaction fees processed by their nodes, while the other 50% will go to block stampers.

By making it possible for almost any participant to earn from running an entry point node without extensive server requirements, Graphite is democratizing access to the blockchain and creating an ecosystem where any user who contributes to the network’s functionality is fairly rewarded.

Furthermore, Graphite is pioneering a reputation-based approach to the blockchain space, bridging traditional finance (TradFi) with the underlying mechanisms of web3. Central to this vision is a set of features that create a secure, trust-oriented blockchain environment.

that it Activate the account The feature enforces a “one user, one account” policy, preventing the creation of multiple disposable wallets, which are often associated with fraudulent behavior. during that it Multi-layer KYC verificationGraphite helps individuals and companies balance privacy needs with transparency requirements. the KYC transaction filters Enabling users to apply KYC-based transaction filters, giving them control over who they interact with. and Trust points The system assigns a trustworthiness rating to each account, ensuring a secure and trustworthy network environment.

Graphite prioritizes both privacy and reputation by leveraging Zero Knowledge Proof technology to verify data for decentralized applications without exposing the data itself while keeping all KYC processes off-chain.

The network’s KYC requirements are designed to be much less intrusive compared to those of TradFi, allowing blockchain users to maintain a level of anonymity in line with their expectations.

Graphite will also implement tagged addresses, which allow users to name wallets associated with specific entities. This ensures the proper use of funds while making any misuse immediately discoverable on the blockchain.

Furthermore, Graphite’s smart ticker system appends the @G token to all coins integrated with its blockchain. This mechanism provides a seamless way to define the network and enhance ecosystem visibility.

A new era of trust in blockchain

From a global perspective, Ethereum’s current challenges are part of a broader evolution in the blockchain industry, as other L1 networks like Graphite create new entry points for large audiences. The Graphite Network not only addresses the scalability and cost constraints of Ethereum, but also creates a trust-based, user-centric blockchain environment.