As Ethereum Delays to 2024, Graphite Network Debuts High-Performance L1 Blockchain

As ethereum falls behind with 70% gains 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 posts a year-to-date gain of over 70%, falling significantly behind other leading cryptocurrencies such as bitcoin and Solana, which are up 142% and 107%, respectively.

bitcoin continues to dominate investor interest, benefiting from its strong deflationary structure and reputation as an efficient store of value. On the contrary, Solana's technical advantages, particularly its speed and cost-effectiveness, make it the preferred choice for 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, which offer unparalleled security, stability and predictability. On the other hand, ethereum faces challenges with its net issuance due to a significant reduction in gas fee burning.

According <a target="_blank" href="https://coinshares.com/lu/resources/research/eth-value-crisis-amid-scaling-and-institutional-interest/” target=”_blank” rel=”nofollow”>Recent CoinShares FindingsThe growth of Layer 2 solutions like Arbitrum and Optimism has diverted significant activity from ethereum's Layer 1 core network. This change has dramatically decreased eth supply burn, undermining ethereum's once-praised deflationary model.

Additionally, other L1s, particularly Solana, have moved forward with faster transaction speeds and reduced costs, attracting a growing user base. As of October, the number of monthly active wallets on Solana reach 138 millionan increase of 245% since August. Along with this growth, Solana's total value locked experienced significant gains, <a target="_blank" href="https://x.com/JustDeauIt/status/1851687059880128626″ target=”_blank” rel=”nofollow”>capturing 2.7% of ethereum TVL inflows so far this year. By contrast, ethereum has struggled, recording net outflows worth $6 billion in 2024.

Beyond Solana, another emerging ethereum alternative is making headlines with its recent market launch.

Improved on-chain speed and scalability: Graphite vs. ethereum vs. Solarium

graphite net has introduced its proprietary L1 blockchain platform, designed to handle high 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 exceeds ethereum's limited transaction speeds of around 15- 20 tps.

Graphite's transaction model also maintains a clear fee rate, allowing users to predict their spending in advance and avoid scenarios similar to ethereum's “gas bidding wars” during block sealing.

Additionally, Graphite's ethereum-compatible virtual machines simplify the transition of 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 isn't just another L1

Graphite uses a proof-of-authority (PoA) consensus model and the Polymer 2.0 algorithm, thereby relying on a network of authorized and trusted nodes to validate blocks. This approach dramatically improves operational efficiency by minimizing the computational and power requirements typically associated with traditional proof-of-work systems.

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

By making it possible for almost any participant to earn money by operating an entry point node without large server demands, Graphite democratizes access to the blockchain and creates an ecosystem where any user who contributes to the network's functionality is equitably rewarded.

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

Is account activation The feature enforces a “One User, One Account” policy, preventing the creation of multiple disposable wallets, which are often linked to fraudulent behavior. Through is multi-layer KYC verificationGraphite helps people and businesses balance privacy needs with the requirement for transparency. He KYC transaction filters Allow users to apply KYC-based transaction filters, giving them control over who they interact with. and the Confidence score The system assigns a credibility 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 that aligns with their expectations.

Graphite will also implement tagged addresses, which will allow users to tag wallets linked to specific entities. This ensures the proper use of funds while making any misuse instantly detectable on the blockchain.

Additionally, Graphite's smart ticker system adds the @G symbol to all currencies integrated into its blockchain. This mechanism provides a perfect method for identifying networks and promoting 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 user-centric and trust-based blockchain environment.