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05 / 06

Ethereum

This lesson starts with a short overview of Ethereum. It then compares Ethereum with Chromia and looks at the strengths and trade-offs of each platform.

Ethereum

Tech and Architecture

  • Ethereum is a blockchain platform built around smart contracts. Applications run on it autonomously and securely, without downtime or outside interference.
  • Ethereum relied on Proof-of-Work (PoW) consensus for many years. It has since moved to Proof-of-Stake (PoS) with The Merge in September 2022, a change that mainly cut its energy use.
  • Code runs on the Ethereum Virtual Machine (EVM), which can execute programs of varying algorithmic complexity.

Scalability

  • Scalability is Ethereum's main open problem. Ethereum 2.0 tackles it by adding ways to raise transaction throughput.
  • Layer 2 solutions, such as rollups and sidechains, help Ethereum scale and lower gas fees.

Development Tools

  • You write Ethereum smart contracts mainly in Solidity.
  • Tools such as Hardhat, Foundry, and Remix make it easier to develop and deploy smart contracts.

Fee Structure

  • Because of the gas fee model, transactions can become expensive, particularly when the network is congested.

Comparison

Development


Ethereum

  • You build Ethereum smart contracts in Solidity. It takes some effort to learn, but it gives you strong capabilities for decentralized applications.

  • Ethereum has a large ecosystem with many developer tools and an active community. Some examples:

    • Truffle Suite: an Ethereum development framework that includes a development environment, a testing framework, and an asset pipeline.
    • Remix: an IDE in the browser where you write, deploy, and manage Solidity smart contracts.
    • Hardhat: an Ethereum development environment made up of components for editing, compiling, debugging, and deploying smart contracts and dapps.

Chromia

  • On Chromia, you write dapps in Rell, a relational programming language for blockchains. Many developers find Rell easier to pick up than Go or Rust, which lowers the barrier to building dapps.
  • Building with Rell feels much like Web2 development. To learn more, read the Rell language guide.
  • Chromia ships tools and libraries that handle authentication, transaction signing, and asset management, and it keeps adding features to speed up dapp development.
  • You can test with Chromia's own test framework and deploy with developer-friendly tooling.

Scalability


Ethereum

  • Ethereum processes only around 15–30 transactions per second, which limits how far it scales. When demand from complex smart contracts and dapps peaks, the network congests, transactions slow down, and fees rise. Both users and developers have long seen this as a major problem.

  • Ethereum relies on Layer 2 solutions, such as Optimistic and ZK Rollups, to scale. These bundle many transactions into a batch and commit the batch to Ethereum as a single transaction.

Chromia

  • On Chromia, each dapp runs on its own subchain, and each subchain handles roughly 500 transactions per second. When your dapp grows, you add more chains. This gives you consistently high throughput and a predictable scaling path, similar to a traditional cloud environment.

    Subchains are isolated from one another, so transactions can be processed in parallel. You scale horizontally, and your app's architecture is the only cap on how far it can scale.

    The subchain architecture is part of the platform itself, so you need little effort to take advantage of it.

Operational Costs & Fees


Ethereum

  • Ethereum charges gas fees: every smart contract execution and every transaction sent to the network costs a fee.
  • Gas can be costly, and the price shifts with network demand. Here too, Layer 2 solutions are the way to reduce fees.
  • As a result, users pay a fee for each action on a smart contract, and developers pay to create and update their smart contracts.

Chromia

  • On Chromia, you host your dapp in a container for a fixed, predictable fee. You know your monthly operating cost in advance and can design your own fee structure for end users to cover it.

    Rather than gas fees on every action, you deal with one cost that is easier to manage.

  • When usage of your dapp increases, you can add resources to its container, much as you would scale resources in a cloud environment.

Revenue Models


Ethereum

  • Ethereum revenue models are mostly transaction-based: developers write smart contracts that charge fees for their services.
  • You can also set up subscriptions, advertising, or in-app purchases, but end users always pay a transaction fee in addition to whatever model you pick.

Chromia

  • Because dapp operating costs on Chromia are fixed and predictable, you decide which fee model your end users see. Transactions and gas fees don't dictate your options.

  • You can charge a monthly subscription, charge per feature, or charge per transaction if you prefer. You can even let users start for free and introduce charges once they see the value of your dapp. Traditional web apps do this routinely, and Web3 apps can do the same.

Conclusion and Comparison Summary to Chromia


Ethereum and Chromia take different approaches to building on a blockchain. The summary below covers the strengths and challenges of each.

Architecture

Ethereum has a traditional blockchain architecture with proof-of-stake consensus. As one of the largest blockchain platforms, it has a broad ecosystem of dapps, communities, and developer utilities, plus tools like Remix and Hardhat that make development efficient.

Its scalability is limited and its gas fees are high. For developers, this means a lot of work goes into designing smart contracts that produce as few transactions as possible.

Chromia keeps things simple with the Rell language, broad library and tool support, and a scalable subchain architecture. Because dapps scale horizontally on Chromia, they avoid Ethereum's scaling limits. Developers with a Web2 background will also find much of it familiar.

Scalability Considerations

With The Merge (September 2022), Ethereum switched from Proof of Work to Proof of Stake. The change mainly improved energy efficiency; Ethereum's scaling roadmap now centres on Layer 2 rollups. Today, Layer 2 solutions like Optimistic and ZK Rollups take load off the main chain: they execute transactions off-chain and post the data back, which greatly raises throughput and lowers transaction costs.

Chromia was designed with parallel chains from the beginning, so scaling is straightforward. Each dapp runs on its own subchain that can process high transaction volumes, and you add subchains when you need more capacity.

You manage scaling on Chromia by adjusting resources, much like with cloud services, which keeps development and resource management simple. Adding subchains lets transactions execute in parallel and puts scaling fully under your control.

Operational Costs & Fees

Deploying a smart contract on Ethereum costs a gas fee. For complex contracts this can be substantial, since it is a one-time cost paid at deployment. Updating your dapp's logic or fixing a bug usually means deploying a new contract and paying again, and changing data in a contract requires transactions that also incur gas fees.

Chromia charges a fixed, predictable fee for hosting dapps instead. You pay monthly for the resources your dapp needs, and adjusting them is no harder than in a traditional cloud environment. Budgeting becomes simpler, and you can design your own end-user fee structures without accounting for transaction fees, which makes for a better experience for your users.

Revenue Models

Gas fees make costs on Ethereum hard for developers to predict.

Ethereum supports the usual blockchain revenue streams: you can stake ETH to earn rewards, and you can attach transaction fees to smart contract executions. These work, but they can feel restrictive, because end users pay gas on every transaction they send, which narrows the revenue models you can offer.

On Chromia, you choose the revenue model yourself, whether subscriptions, per-feature charges, or per-transaction fees. This freedom supports revenue strategies closer to those of modern web apps.

Final Words

Ethereum offers a powerful and flexible blockchain ecosystem. Chromia stands out through its approachable development experience, predictable costs, and flexible revenue options, which make it a strong choice for developers looking for an easy way into blockchain development.

Written for this site from Chromia’s public course. Code samples are the course’s own.