Ethereum, once considered as a game changer for blockchain and cryptocurrencies, is currently under the weather due to its congestion and scalability issues. And the misery doesn’t seem to be ending as the data on Ether Scan shows the total pending transactions on Ethereum has crossed the 90K mark.
Are things getting out of control for Ethereum?
Ethereum’s blockchain is choking and things don’t seem to be falling in place for the third largest cryptocurrency by market cap. The burden of pending transaction on Ethereum blockchain is piling up and Ethereum seriously needs an answer that can give it some quick fixes for its technical and scalability issues. According to the recent data available on EtherScan, Ethereum pending transactions have crossed the figure of ninety thousand and is growing swiftly. While reporting the pending number stood at 90855.
The problem doesn’t end here for Ethereum. Despite rising new addresses, the overall activity of the transaction showed a downward trend. According to data released by Searchain.io, the new ETH address had increased by 8.24% and the active ETH address had increased by 5.56% on Nov 30, compared with that of Nov 29, however, the inflow transactions have decreased by 16.85%, and the outflow transactions have decreased by 14.04%.
Also, due to the scalability hurdles, several ICO projects and Dapp’s are moving away from the Ethereum platform to other emerging ones. Other decentralized platforms like Tron, EOS and Stellar Lumes pose a formidable challenge to Ethereum at this moment.
Recently, the Malaysian exchange PinkExc decided to move from Ethereum blockchain to Stellar (XLM) blockchain technology. The exchange wanted to use the Stellar blockchain technology because it meets their need for a faster, cheaper and more reliable asset value transaction token. Also the crypto collectible game, Blockchain Cuties recently ditched Ethereum blockchain and is now moving to Tron’s MainNet. As stated by the company, Tron has better scalability and speed- a milder way to point at Ethereum’s issues which that game too was facing being on its blockchain.
Ethereum needs answers and needs them really quick or things are just on the verge of falling out of the hand. Let’s see what Vitalik and his team of developers pull out from their hats here.
Will Ethereum be able to sustain this growing pressure or with the worlds third largest cryptocurrency by market cap just fizzle out? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.