The primary view of the markets suggests an evolution of Ethereum as an exclusive layer for financial settlements. However, Vitalik Buterin doesn’t agree with the narration and sticks to the ‘world computer’ idea.
As reported yesterday on CoinGape, the top applications on Ethereum are all DeFi-based. Today, leading crypto analyst and partner at Castle Island Ventures, Nic Carter, expresses similar views on the future of the network.
Simply put, fees are of immense importance to a blockchain with a capped supply. Otherwise, in case of uncapped supply, the users must “rely on perpetual inflation to finance security or fall back to permissioned validators” In a growing economy, inflation is a positive characteristic feature which provides the room for further growth. Hence. the validators’ and users’ motivation will lie either on the rewards from mining (eventually fees) or inflation.
Therefore, the prospect of building a blockchain empowering the world computer presents a paradoxical situation for Ethereum. However, Vitalik points out that it is only a short phase. He says,
No one is “embracing” high per-transaction fees. There’s certainly happiness about *total* fees being high, but that’s not the same as being ok with per-transaction fees being high.
Trending Stories
The issue that Carter is presenting seems to take a pragmatic view of the situation. But Vitalik holds onto his vision. He says,
I think my main disagreement with your (Nic Carter) positioning is just that I don’t think the ethereum community has to the slightest extent abandoned the dream of supporting non-financial apps with affordable fees.
With the help of roll-ups, shards and plasma on Ethereum 2.0 the foundation envision to support all a variety of low fees based transactions. However, the apprehensions around its’ security and scalability is still a viable concern.
Ethereum 2.0 Update
Out of the four elaborate phases of launch, only the test-net of the first phase is active as out of yet. The Medella Testnet launch was the most recent update to the Ethereum 2.0 roadmap. Reportedly, there were flaws or setback in the beginning on the test-net. However, things seem to be functioning properly now. Successful implementation of Medella will finally pave way for the mainnet launch of the beacon chain.
Do you support the innovation led by Vitalik or agree with the views of Carter and Hasu? Please share your view with us.
- Just-In: Grayscale Adds Five New Tokens To Its Investment Products
- Another Stablecoin Follows LUNA $UST, Crashes Within Hours
- PlanB: Bitcoin (BTC) Is Creating A Bottom For The Next Bull Market
- Shiba Inu Holders Increase Amid Market Crash, But There’s A Catch
- LUNA Crash: South Korea Toughens Up Investigations Over Terra (LUNA) Crisis
- Avalanche (AVAX) Slumps 5% In Minutes On Fears Of Terra Dump
- Breaking: Luna Foundation Guard Reserves Decimated By Terra Crash
- Breaking: Luna Foundation Guard Member Says Terra Reserves En Route
- Just-In: El Salvador To Discuss Bitcoin Adoption With 44 Countries
- Ethereum Founder Says A Terra Bailout Should Target These Holders
- Ethereum Price Analysis: ETH Price Erases Recovery Gains Towards $2,000
- Decentraland Price Analysis: MANA Price Sinks 10%; Are You Still Holding?
- Bitcoin Price Analysis: BTC Price Under Bear’s Spell; Is $26,000 On Cards Again?
- ETH Price Analysis: Consolidation Range Soon To Launch ETH Above $2250
- Bitcoin Price Analysis: Triangle Breakout Sets BTC Rally To $32000 Mark
- LUNA Price Analysis: Opportunity to Buy Cheap or A Bull Trap?
- Decentraland Price Analysis: MANA Price Prepares For 60% Gains; Are You Buying?
- SOL Price Analysis: Is $60.0 Around The Corner On The 4-hour Chart?
- DOGE Price Analysis: Wedge Pattern Retest Phase Warns $0.08 Fallout
- Ripple Price Analysis: XRP Price Remains Pressured below $0.50; Is Selling A Good Choice?