Ethereum's current challenges are part of a broader evolution in the blockchain industry, and Graphite is creating new entry points for the masses.

Author: Cryptonew.com

Translated by: Deep Tide TechFlow

As Ethereum underperforms in 2024, Graphite Network has launched a high-performance L1 blockchain that offers entry-point revenue and reputation-based features.

As of December 2024, Ethereum (ETH) has risen nearly 58%, but it has lagged behind other top cryptocurrencies like Bitcoin (BTC) and Solana (SOL), which have increased by 123% and 104%, respectively. Bitcoin continues to attract investor attention due to its strong deflationary model and effectiveness as a store of value. Meanwhile, Solana has become the preferred choice for decentralized finance (DeFi) and non-fungible token (NFT) developers due to its performance advantages.

Bitcoin's fixed supply and carefully managed inflation control make it a symbol of security, stability, and predictability, while Ethereum's net issuance has been constrained due to reduced fee burning. CoinShares' latest analysis shows that the popularity of Layer-2 networks like Arbitrum and Optimism has shifted activity away from Ethereum's main Layer-1 (L1) chain, resulting in almost zero supply burning of ETH, undermining the effectiveness of Ethereum's once-lauded deflationary framework.

Additionally, competing L1 blockchains with faster transaction processing speeds and lower fees, such as Solana, have seen exponential growth in their user base. The number of monthly active addresses on the Solana network reached 138 million in October, a 245% increase since August. At the same time, Solana's total value locked (TVL) surged, with inflows year-to-date accounting for 2.7% of Ethereum's TVL. Overall, the Ethereum network has experienced a net outflow of $6 billion so far in 2024.

In addition to Solana, another emerging Ethereum alternative that has garnered attention is Graphite Network. It recently launched its self-developed L1 blockchain platform, designed for high transaction volumes, capable of supporting up to 1,400 transactions per second (tps) with confirmation times of less than 10 seconds. This performance far exceeds Ethereum's transaction speed, which is only 15-20 tps.

Graphite's transaction model also maintains clear fee rates, allowing users to predict their fees in advance and avoiding situations similar to Ethereum's "gas bidding wars" during block packing.

Moreover, Graphite's Ethereum-compatible virtual machine simplifies the transition of Solidity smart contracts onto the network, enabling developers to scale their existing decentralized applications without the need for additional resources required to build on blockchains like Solana.

Graphite is More Than Just an L1

Graphite utilizes a Proof of Authority (PoA) consensus mechanism enhanced by the Polymer 2.0 algorithm, verifying blocks through an authorized node network. This approach significantly improves efficiency by reducing the computational and energy consumption associated with traditional proof-of-work systems.

Additionally, Graphite's transaction architecture provides passive income opportunities for entry nodes (transmission nodes), a unique feature not found in other blockchains. In other blockchains, only validation nodes with substantial resources can generate income. In Graphite, transmission node operators can earn 50% of the fees generated through their nodes, with the remaining 50% allocated to block packers.

This design allows almost any participant to earn income by operating entry nodes without requiring substantial server resources, thus democratizing access to the blockchain. Graphite has created an ecosystem where any user contributing to network functionality can receive fair rewards.

Furthermore, Graphite is pioneering a reputation-based approach in the blockchain space, combining traditional finance (TradFi) with the core mechanisms of Web3. At the heart of its vision is a set of features aimed at establishing a secure and trust-oriented blockchain environment:

• Account Activation: Before using Graphite, each user must pay a small fee to activate their account, enforcing a "one user, one account" policy to prevent multiple disposable wallets associated with fraudulent activities.

• Multi-layer KYC Verification: Graphite implements a tiered KYC system, starting with basic social media verification and expanding to higher levels (in future versions), providing flexibility for users and businesses in managing privacy without compromising transparency.

• KYC Transaction Filters: Through Graphite, users can establish KYC transaction filters to block interactions with accounts that do not meet their verification standards, while businesses can create customized, reputation-driven smart contracts targeting specific user profiles.

• Trust Scores: Similar to credit ratings in TradFi, trust scores are the foundation of all reputation-based interactions on Graphite. They display the credibility of each account, relying on KYC levels, transaction history, and other factors, promoting secure and healthy network activity.

While Graphite focuses on reputation, it maintains privacy by using zero-knowledge proof technology for data verification and conducting all KYC processes off-chain. This approach ensures that users' sensitive data is never published on the blockchain, with only the final KYC level of a given wallet shared with Graphite. The network also commits to having verification requirements that are less intrusive than those related to TradFi, respecting the reasonable anonymity valued by blockchain users.

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, with other L1 networks like Graphite creating new entry points for the masses.

According to Graphite Network CTO Marko Ratkovic, their blockchain addresses common challenges in cryptocurrency adoption, including a lack of trust, fear of financial loss, and concerns about scams, ultimately enhancing user confidence.

Ratkovic stated, "While this is a complex issue, Graphite marks a significant advancement in the evolution of blockchain technology by integrating the credibility of traditional finance with the innovation of Web3, a method that not only enhances user trust but also paves the way for broader adoption."

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。