In the previous part of this series, we explored how Ethereum, the leading second-generation blockchain, struggled with issues like high gas fees, excessive energy consumption, and slow transaction speeds during its Proof-of-Work (PoW) phase. As decentralized finance (DeFi) and non-fungible tokens (NFTs) exploded in popularity, Ethereum’s limitations created opportunities for other public blockchains to emerge.
These new blockchains promised lower fees, faster transactions, and a better user experience. This led to what many call the "public chain war" of 2021. But before we dive into the key players, it’s essential to understand how we evaluate these blockchains.
How to Evaluate Public Blockchains
To objectively compare public blockchains, we rely on five core metrics. These indicators help us gauge a chain’s health, adoption, and potential for long-term success.
Total Value Locked (TVL)
TVL measures the total amount of assets locked in a blockchain’s decentralized applications (dApps), primarily in DeFi protocols. A higher TVL suggests greater user trust, lower risk, and more stable returns. Think of it like depositing money in a bank—you choose institutions you trust. Similarly, in blockchain, TVL reflects confidence in the network’s security and utility.
Number of Protocols
This metric indicates the richness and diversity of a blockchain’s ecosystem. More protocols mean a wider range of applications, including NFTs, GameFi, SocialFi, and other emerging sectors. A vibrant ecosystem attracts users and developers, fostering innovation and growth.
Developer Activity
The number and activity level of developers on a blockchain are critical for its future. Consistent growth in developer engagement signals a healthy, evolving platform. A decline might indicate underlying risks or a lack of confidence in the chain’s long-term viability.
Daily Active Addresses
This metric tracks the number of unique wallet addresses conducting transactions on the chain each day. It’s a direct measure of user engagement. Higher numbers indicate a more active and thriving community.
Daily Transaction Count
The total number of transactions processed on the chain daily. High transaction volume signifies strong network activity and usability. Sudden drops in this metric could signal declining user interest or confidence.
With these metrics in mind, let’s explore the key players in the public blockchain arena.
Major Contenders in the Public Chain Landscape
BNB Chain (Formerly Binance Smart Chain)
BNB Chain, originally launched as Binance Smart Chain (BSC) in 2020, is backed by Binance, one of the world’s largest cryptocurrency exchanges. BSC was integrated with Binance Chain to form BNB Chain, which supports smart contracts and decentralized applications.
As an Ethereum Virtual Machine (EVM)-compatible chain, BNB Chain easily ported many Ethereum-based projects. It also offered a $100 million ecosystem fund to incentivize developers to build on its network. Despite early concerns about centralization, BNB Chain has gradually decentralized while maintaining low fees and high efficiency.
In February 2021, BSC’s TVL surged from $300 million to $21.5 billion. However, China’s crypto crackdown in May 2021 caused a market-wide downturn, and BSC’s TVL never fully recovered. Despite this, BNB Chain continues to innovate, launching new chains like opBNB and BNB Greenfield in 2023 to enhance scalability, security, and privacy.
TRON
Founded by entrepreneur Justin Sun in 2017, TRON started as an Ethereum-based project before launching its independent blockchain in 2018. Despite criticism about its centralization and Sun’s controversial reputation, TRON has focused on regulatory compliance and building government relationships.
TRON’s primary strength lies in its low transaction fees, making it a popular choice for stablecoin transfers, particularly USDT. Tether’s USDT issuance on TRON has surpassed that of Ethereum, with $57.8 billion worth of USDT on TRON compared to $50.9 billion on Ethereum. The TRC-20 standard is widely used for USDT transfers due to its cost-effectiveness and speed.
Polygon
Initially known as Matic Network, Polygon was founded by a team of Indian developers aiming to solve Ethereum’s scalability issues. It rebranded to Polygon in 2021, expanding its vision to include multiple scaling solutions while retaining its native token, MATIC.
Polygon’s low transaction costs make it ideal for NFT minting, token swaps, and other on-chain activities. For example, creating an NFT on Polygon costs just $0.02 compared to $9.32 on Ethereum. The platform also launched a $150 million DeFi incentive program to attract developers and users.
Polygon plans to upgrade MATIC to POL, a more versatile token, pending community approval. This move aims to enhance the network’s functionality and governance.
Solana
Solana stands out as the only non-EVM-compatible chain among these contenders. While this means developers can’t easily port Ethereum-based applications, it allows Solana to offer unique advantages, including incredibly high throughput—up to 65,000 transactions per second—and fees as low as 0.00001% of Ethereum’s.
Solana’s ecosystem grew rapidly in 2021, with TVL rising from $500 million to $12.3 billion by July. However, network outages and the bear market caused a significant decline. Despite these challenges, Solana rebounded in 2024 thanks to a surge in meme coin activity and strategic partnerships, like its collaboration with Visa. The launch of the Saga smartphone, initially slow-selling, gained traction due to lucrative airdrop rewards.
Who Emerged as the Winner?
Based on data from sources like DeFiLlama and Artemis, Ethereum remains the undisputed leader in smart contract platforms. It boasts the highest TVL and the largest number of protocols, though its high gas fees limit its daily transaction volume compared to competitors.
TRON leads in daily active addresses, driven largely by USDT transfers, but lags in other metrics. BNB Chain performs consistently across the board, ranking second in protocol count and developer activity. Solana excels in daily transaction volume, fueled by its strength in GameFi, NFTs, and meme coins. Polygon, while robust, trails behind in overall metrics.
Despite the fierce competition, no blockchain has yet dethroned Ethereum. Instead, these chains complement each other, addressing Ethereum’s weaknesses while collectively advancing the blockchain ecosystem.
Frequently Asked Questions
What is a smart contract public blockchain?
A smart contract public blockchain is a decentralized network that allows developers to build and deploy self-executing contracts. These contracts automatically enforce terms without intermediaries, enabling applications like DeFi, NFTs, and decentralized apps (dApps).
Why are gas fees lower on chains like BNB Chain and Polygon?
These chains use alternative consensus mechanisms, such as Proof-of-Stake (PoS), or layer-2 scaling solutions to reduce computational overhead. This results in faster transactions and lower costs compared to Ethereum’s PoW model.
How does TVL impact a blockchain’s value?
TVL reflects the total assets locked in a chain’s DeFi protocols. Higher TVL indicates greater user trust, more opportunities for yield farming, and a stronger ecosystem, which can drive the native token’s value.
What are the risks of using non-EVM chains like Solana?
Non-EVM chains may have fewer compatible tools and require developers to learn new programming languages. They can also experience growing pains, like network outages, but often offer superior speed and cost efficiency.
Can Ethereum maintain its dominance long-term?
Ethereum’s ongoing upgrades, like the transition to Proof-of-Stake and layer-2 rollups, aim to address its scalability issues. However, competition from other chains ensures continuous innovation, benefiting users and developers alike.
How do I choose the right blockchain for my needs?
Consider factors like transaction costs, speed, ecosystem diversity, and security. For DeFi, Ethereum and BNB Chain are popular choices; for NFTs, Ethereum and Solana; for low-cost transfers, TRON and Polygon. 👉 Explore more strategies for selecting blockchains
Conclusion
The public chain war has driven incredible innovation, with each blockchain offering unique strengths. Ethereum remains the leader, but alternatives like BNB Chain, TRON, Polygon, and Solana have carved out significant niches. Together, they push the entire industry forward, providing users with more choices and better experiences.
As the landscape evolves, staying informed helps you make smarter decisions, whether you’re investing, building, or simply exploring the world of blockchain. 👉 View real-time tools for blockchain analysis