Gate2Chain Reviews: Protocol Comparison
This document compares the Ethereum, Algorand and BSV blockchain platforms and explains why Gate2Chain is committed to using BSV as its one and only underlying blockchain.
The inability of Ethereum to scale and its high transaction fees do not allow it to compete with Algorand or BSV in this comparison.
Regarding the BSV - Algorand comparison, BSV comes out on top due to the following:
- First and probably most important is the governance model and the capacity of changing the protocol: Algorand can be controlled by a small number of parties who can decide to change the protocol, while BSV does not allow changes at the protocol level. Therefore, BSV is stable enough to be trusted by companies that want to deploy a business on top of a blockchain.
- Second, BSV is more scalable than Algorand, not only in terms of tps (unbounded tps in BSV vs. theoretical current maximum of 46K tps in Algorand) but also in terms of fee model: while in BSV, with an agreement with a transaction processor, fees are stable no matter the price of the coin, fees in Algorand are set at the protocol level as a factor of the price of the coin, so if ALGO increases its price, fees increase at the same pace.
- Third, the development focus of BSV is wider than that of Algorand: the former gives solutions on scalability and utility to a broad number of business models, while the latter is more restricted to DeFi and finance-based solutions.
- Algorand is new and unstable, while BSV is mature technology with over twelve years of history.
“The existing Visa credit network processes about 15 million Internet purchases per day worldwide. Bitcoin can already scale much larger than that with existing hardware for a fraction of the cost. It never really hits a scale ceiling.”
Satoshi Nakamoto - 2009