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Ethereum

Let's start with a quick overview of Ethereum, and then we will continue with comparing Ethereum to Chromia and also discuss the benefits and challenges with the two solutions.

Ethereum​

Tech and Architecture

  • Ethereum is a blockchain platform featuring an architecture that supports smart contracts, enabling applications to run autonomously and securely without downtime or interference.
  • It has for a long time used the Proof-of-Work (PoW) consensus mechanism but has now transitioned to Proof-of-Stake (PoS) in Ethereum 2.0, aimed at improving scalability and energy efficiency.
  • Uses Ethereum Virtual Machine (EVM), which enables the execution of code of varying algorithmic complexity.

Scalability

  • Ethereum's current challenge is scalability, which is addressed in Ethereum 2.0 with the introduction of methods to increase transaction throughput.
  • Layer 2 solutions like rollups and sidechains are being used to enhance Ethereum's scalability and reduce gas fees.

Development Tools

  • Ethereum supports Solidity as the primary language for writing smart contracts.
  • It provides extensive development tools like Truffle, Hardhat, and Remix, which simplify the process of smart contract development and deployment.

Fee Structure

  • Ethereum's gas fee model can lead to high transaction costs, especially during periods of network congestion.

Comparison​

Development​

Ethereum

  • Ethereum uses Solidity for smart contract development, which has a learning curve but offers robust capabilities for decentralized applications.

  • The platform has a large ecosystem with extensive developer tools and community support. Examples of these are:

    • Truffle Suite: a development framework for Ethereum that provides a development environment, testing framework, and asset pipeline.
    • Remix: a browser-based IDE that allows for writing, deploying, and administering smart contracts in Solidity.
    • Hardhat: a development environment for Ethereum software. It consists of different components for editing, compiling, debugging, and deploying your smart contracts and dapps.

Chromia

  • Chromia uses Rell, a relational blockchain programming language. Rell can be a more user-friendly language than Go or Rust, making it easier for developers to build dapps on Chromia.
  • Development on Chromia using Rell is very similar to Web2 development. For more insights on this, check out our guide here.
  • Chromia provides tools and libraries to simplify authentication, transaction signing, and asset management, and new features are added to support rapid dapp development.
  • Chromia's development environment has support for testing using its own test framework and simple deployment using developer-friendly tools.

Scalability​

Ethereum

  • Ethereum faces challenges in scalability, primarily due to its capacity to handle only about 15-30 transactions per second. This limitation often leads to network congestion, especially during periods of high demand from complex smart contracts and decentralized applications (dapps). The result is slower transaction times and higher fees, which has been a significant concern for users and developers alike.

  • To increase scalability, Ethereum uses Layer 2 solutions like Optimistic and ZK Rollups; these solutions work by packing transactions together in batches before committing them to Ethereum as one transaction.

Chromia

  • Chromia's approach is that every dapp on Chromia operates on a unique subchain. Each subchain can handle about 500 transactions every second. If a dapp witnesses growth, it can with ease be expanded by adding more chains. This structure guarantees sustained high throughput and a predictable way of scaling your dapp, much like in a traditional cloud environment.

    Since every subchain is isolated from other subchains, this means that you can process transactions in parallel. In essence, this means scaling horizontally and only your app architecture sets the limit for scalability.

    Chromia's sidechain architecture is built into the platform, making it a low effort for developers to utilize this approach of sidechains.

Operational Costs & Fees​

Ethereum

  • Ethereum uses a gas fee model, meaning that there is a fee associated with executing a smart contract or sending transactions to the network.
  • Ethereum's gas fee model can be expensive, with fees varying based on network demand. Again, Layer 2-solutions are used to lower the fees.
  • This means that the user has to pay a transaction fee to perform actions on smart contracts, and there is a fee to create and update smart contracts for the developer

Chromia

  • Chromia changes the game by allowing developers to host their decentralized app (dapp) in a container for a fixed, predictable fee. This transparency means developers know how much their operational costs are each month, and they can create their own end-user fee structures to cover these operational expenses.

    So, instead of being charged gas fees for every action, there's a single, more manageable cost to work with.

  • As a Chromia dapp grows in usage, the developer of the dapp can increase the resources of their container. Very similar to how you manage resources in a Cloud environment.

Revenue Models​

Ethereum

  • Revenue models on Ethereum are primarily transaction-based, with developers setting up smart contracts that collect fees for various services.
  • It is possible to setup revenue models like subscription fees, advertising and in-app purchases but the end-user will always pay a transaction fee on top of the revenue-model choosen.

Chromia

  • Operational costs of dapps are fixed and predictable on Chromia. The dapp developer can choose which fee model they want to use for their end-users. With Chromia, you are not locked in by transactions and gas fees.

  • For your dapp, you can have a monthly subscription fee, charge for single features, or, if you want, per transaction. This opens up a more user-friendly experience since you can even let the user start for free and then open up for revenues later when the user has found the value of your dapp. This is a common practice in traditional web applications and should be no different for Web3.

Conclusion and Comparison Summary to Chromia​

In the evolving landscape of blockchain platforms, Ethereum and Chromia each present unique features and approaches. Let's summarize and discuss the benefits and challenges.

Architecture​

Ethereum uses a traditional blockchain architecture with a proof-of-stake consensus mechanism. It is one of the major blockchain platforms and has a large ecosystem of dapps, communities, and utilities for developers. There are many tools to make development efficient on Ethereum, like Remix and Hardhat.

Ethereum has some limitations when it comes to scalability, and Gas fees are quite high. This can be a challenge for developers since a a lot of effort needs to be spent on developing smart contracts that generate as few transactions as possible.

Chromia offers simplicity with its development language Rell, extensive library and tool support, and its scalable subchain architecture. Since Chromia has a different scaling model where dapps can scale horizontally, it will not experience the limitations of Ethereum when it comes to scaling. Chromia also has a lot of similarities to Web2 developers.

Scalability Considerations​

Ethereums shifted from Proof of Work to Proof of Stake consensus mechanism with Ethereum 2.0. While this primarily improves security and energy efficiency, it also sets the foundation for future scalability enhancements like parallel chains. Today, Layer 2 solutions like Optimistic and ZK Rollups help Ethereum scale and offload the main chain by executing transactions outside the main chain and posting the data back to it, significantly increasing throughput and reducing transaction costs.

Chromia has parallel chains built into its architecture from the start, making it a very straightforward scaling solution. Each dapp operates on its own subchain, capable of handling high transaction volumes. More subchains can be added as needed, which makes it scale very well.

Scalability on Chromia can be easily managed through resource adjustments, which are very close to cloud services. Making the development and resource management effort more straightforward. The ability to add subchains enables parallel execution of transactions, which gives the developer full control of scaling.

Operational Costs & Fees​

Deploying smart contracts to the Ethereum network has a cost in the form of a gas fee. These fees can be significant, especially for complex contracts, as they are a one-time cost paid during deployment. If you need to update your dapps logic or fix a bug, you often have to deploy a new smart contract, which again has a cost, and if you want to modify data in your smart contract, this is done through transactions that will generate a gas fee.

Chromia, however, offers a fixed, predictable fee for hosting dapps. You simply pay a monthly fee for the resources you require for your dapp. It's no more complex than adjusting resources in a traditional Cloud environment. This model not only simplifies budgeting for developers but also allows them to craft unique fee structures for end-users without having to think about transaction fees. This really enhances the end-user experience.

Revenue Models​

Ethereum's Gas Fee model often causes unpredictability in costs for developers.

Ethereum provides traditional blockchain revenue streams; you can stake ETH and gain rewards, and you can add transaction fees to smart contract executions. These methods are effective but may not offer the flexibility some developers seek since the end user has to pay a gas fee for every transaction sent through the network. This limits the options for revenue models.

Chromia, on the other hand, allows developers to choose their revenue models, from subscriptions to feature-based charges or even per-transaction fees. This flexibility opens up creative revenue strategies that are more aligned with today's web apps.

Final Words​

While Ethereum presents a powerful, scalable, and flexible blockchain ecosystem, Chromia distinguishes itself with its user-friendly approach, predictable cost model, and adaptable revenue strategies. These features make Chromia an appealing option, particularly for developers seeking an easy entry into the blockchain space.