While Ethereum lags in 2024, Graphite Network debuts high-performance L1 blockchain

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

As the end of 2024 quickly approaches, Ethereum has recorded a year-to-date gain of over 70%, significantly lagging behind leading cryptocurrencies such as Bitcoin and Solana, which are up 142% and 107% respectively.

Source: CoinMarketCap

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

Why is Ethereum underperforming in 2024?

Bitcoin’s appeal lies in its fixed supply and carefully regulated inflation mechanisms, offering unmatched security, stability and predictability. Ethereum, on the other hand, is facing challenges in its net issuance due to the significant reduction in gas fee burns.

According to recent findings from CoinShares, the growth of layer-2 solutions such as Arbitrum and Optimism has moved significant activity away from Ethereum’s core layer-1 network. This shift greatly reduced ETH supply losses, undermining Ethereum’s once-vaunted deflationary model.

Additionally, other L1s, particularly Solana, have excelled with faster processing speeds and lower costs, attracting a growing user base. As of October, the number of monthly active wallets on Solana reached 138 million, an increase of 245% since August. Alongside this growth, Solana’s total value locked has made significant gains, capturing 2.7% of Ethereum’s year-to-date TVL flow. In contrast, Ethereum remained in a difficult situation and recorded a net outflow of $6 billion in 2024.

Beyond Solana, an emerging Ethereum alternative is making headlines with its recent launch.

Improved on-chain speed and scalability: Graphite vs. Ethereum vs. solana

Graphite Network has introduced its proprietary L1 blockchain platform, designed to handle high transaction volumes with a capacity of 1,400 transactions per second and confirmation times of less than 10 seconds, a performance that significantly exceeds Ethereum’s limited transaction speeds of around 15-15 seconds. 20 TL.

Graphite’s transaction model also maintains a clear fee rate, allowing users to anticipate their spending and avoid scenarios similar to Ethereum’s “gas bidding wars” during block sealing.

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

Why isn’t graphite an ordinary L1?

Graphite uses the Proof of Authority (PoA) consensus model and the Polymer 2.0 algorithm, relying on a network of trusted, authorized nodes to verify blocks. This approach significantly increases operational efficiency by minimizing the energy and computational requirements typically associated with traditional Proof-of-Work systems.

Graphite’s transaction model offers a passive income opportunity for entry point (transport) nodes; This is a feature that distinguishes it from other blockchains where only resource-intensive validator nodes earn rewards. Transport node operators will receive 50% of transaction fees processed through their nodes, while the other 50% will go to block sealers.

By making it possible for nearly any participant to earn by running an entry point node without extensive server demands, Graphite democratizes blockchain access and creates an ecosystem where any user who contributes to the functionality of the network is fairly rewarded.

On top of that, Graphite is pioneering a reputation-based approach to the blockchain space, bridging the gap between traditional finance (TradFi) and the core mechanics of web3. Central to this vision is a set of features that create a secure and trust-oriented blockchain environment.

The account activation feature enforces the “One User, One Account” policy, preventing the creation of multiple disposable wallets, which is often linked to fraudulent behavior. Thanks to multi-layered KYC verification, Graphite helps individuals and businesses balance their privacy needs with the need for transparency. KYC action filters allow users to apply KYC-based action filters, giving them control over who they interact with. The Trust Score system provides a safe and reliable network environment by assigning a reliability rating to each account.

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

The network’s KYC requirements are designed to be much less intrusive than those on TradFi, allowing blockchain users to maintain a level of anonymity that suits their expectations.

Graphite will also implement tagged addresses, allowing users to tag wallets tied to specific assets. This ensures that the fund is used appropriately while ensuring that any misuse is immediately detected on the blockchain.

Moreover, Graphite’s smart ticker system adds the @G symbol to all coins integrated with the blockchain. This mechanism provides a seamless method for defining the network and supporting ecosystem clarity.

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, where other L1 networks like Graphite are creating new entry points for mass audiences. Graphite Network not only addresses the scalability and cost limitations of Ethereum, but also creates a trust-driven, user-centric blockchain environment.

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