Why Bitcoin Will No Longer Be the #1 Сryptocurrency Soon

Feb 20, 2022 • 1 min read

Degradation

Behind every good product there is a visionary who sets the direction for further development. You won't have to go far for examples – Ethereum has Buterin, Telegram has Durov, and Apple had Jobs, – after his resignation the company stopped taking risks and releasing innovative products, now the company is stagnating, despite its value.

We see a similar situation in Bitcoin: the lack of significant updates and a full-fledged development team. Enthusiasts are not rewarded in any way for their efforts, there is neither a development fund nor a program to support initiatives. All this leads to the fact that it's more interesting for developers to create products within other blockchains – and one of them is The Open Network.

Centralization

Another factor slowing down the development of large cryptocurrencies is the outdated PoW consensus – now it has become a big obstacle to scaling, as well as a reason for attacks from environmental activists and authorities in different countries.

The PoW algorithm also poses the greatest centralization risks. Industrial mining farms, just 5 of which already control most of Bitcoin network, will always be more vulnerable compared to hundreds and thousands of PoS validators that can be deployed on almost any device anywhere in the world, with minimal energy and maintenance costs.

TON blockchain was originally designed with PoS algorithm, and PoW mining is used here only as a method of initial emission distribution, which should be completed this summer.

Limitation

Furthermore, wrapped tokens are actively developing – so instead of using 10 different blockchains, you can transfer all coins to one fast and cheap blockchain, then send, receive and manage them in a single interface, paying fees in any coin, and if you wish, you can transfer coins back to the original blockchain. All this will become possible in TON in the near future, when the TON's extracurriencies and tokens service will be launched.

The market history is cyclical, and sooner or later the giants of the industry will retire, opening the way for new technologies. It's time for a new generation of blockchains.