Will Ethereum Rise Again? Demystifying The Ethereum Future
Ethereum is known for as the decentralized platform and smart contracts that run with no risk of fraud, censorship, or third-party interference. On 15th January 2018, the value of ETH rose by more than 49,000% from the starting price in August 2015. However, until recently when Ethereum was overtaken by Ripple, it was considered as the de-factor runner-up to Bitcoin. Ripple has unsettled Ethereum with a huge margin of about $2.4 billion in market capitalization.
As newer platforms enter the market and threaten Ethereum’s space, concerns are emerging about Ethereum’s spring back capability. This post takes a closer look at Ethereum to answer the following questions of “Will Ethereum rise again?” and “Is Ethereum facing imminent death?”
Decentralized Applications Are Shifting Away From Ethereum
One of the major crypto reports that rocked headlines in July 2018 was the EOSBet DApp shift from Ethereum to EOS blockchain. But it is not just EOSBet that shifted away from Ethereum. Others DApps that have shifted from Ethereum include:
The big question to ask at this point is “Why are so many DApps migrating?” It is probable that customers did not get the impressive experience they were looking for at Ethereum. At the top on this list is speed and poor sustainability. Like Bitcoin, pioneer coins such as Ethereum and Ripple have been suffering from scalability problems.
Unless Ethereum reinvents itself, it is unlikely to slow down the current landslide shift to other platforms. For example, EOS platform has shown a lot of enthusiasm to help the blockchain move to the next level. This vigor was reflected when the platform raised a breathtaking $4 billion in a year-long initial coin offering (ICO ) that ended in June 2018.
The Concept Of Gas Created Unnecessary Complexities
If you follow the crypto space closely, one of the regular questions is “What is GAS?” The concept is considered as an unnecessary complication that most crypto users are willing to forego.
Though the development team considered GAS a noble idea, the truth is that it took away a significant portion of demand and power that could have helped to drive Ethereum to the next level.
If the GAS being paid in all the ERC-20 tokens was in ETH, the chances are that the coin could be edging higher and even higher than Bitcoin. This is why many people appear to agree that Ethereum had its best days and it is time to watch others take the lead.
To reinvigorate its operations, Ethereum could consider doing away with GAS to clear away associated complexities and win more users. However, this would require major restructuring because the concept of GAS is entrenched deep into Ethereum and its supported coins.
The Rise Of Better Platforms For Decentralized Applications
When Ethereum started supporting the development of decentralized applications, other developers wanted to replicate the model and help the blockchain move to the next level. But their designs were created with one core objective: to address the shortcomings noted on the Ethereum system.
Take the case of EOS. While Ethereum can only handle an average of 20 transactions every minute, EOS has provided breathtaking scalability with a new block being generated every 0.5 seconds. However, it is the capability to progressively expand that has made more users believe that EOS could be the future and Ethereum the past.
As Ethereum stalls looking for a new way of increasing scalability, top competitors are already working on advancing to limitless transactions per second. Though Ethereum had achieved so much, especially in supporting smart contracts, it has now become the industry standard.
Vitalik Buterin Agrees That Reinventing Ethereum Is Difficult
The success of a project is largely dependent on the ability of the founder to steer it from one glory to another. This situation was evident during the Child DAO attack when tech gurus such as Vitalik Buterin opted for Ethereum as Ethereum Classic took a different direction.
But the vigor and strength that Buterin and his team had in 2016 is all gone. Buterin started by admitting that indeed if it were possible to change Ethereum, it would be a good idea to help it remain competitive. That was a reflection of a resigning leader.
Even before people could fully conceptualize what Buterin fully meant about the difficulty in changing Ethereum, he followed with progressive tweets to show he could be walking away. That is what appears to have dealt Ethereum the last blow.
In the tweets, Buterin appeared to prepare his followers and the entire community for a post-Vitalik Buterin Ethereum. Take a look at the tweets below from the leader that show he might be walking away from Ethereum platform.
The news about his exit did not help the Ethereum price in any way. After the news, the price of Ethereum took a downtrend that abandoned the recovery trend it had assumed from September 11, 2018. Note the steep decline after Buterin’s announcement:
Why Ethereum Cannot Simply Be Written Off
When one takes a closer look at the Ethereum platform, there is no doubt that it is a network that is destined for the rocks. The structures that the development team took so long to develop are now emerging to be the stumbling blocks. But, hold on for a moment!
The answer to the question, “Is Ethereum going to rise?”, can also be in the affirmative. While all the indicators are blinking red, it is impossible to simply write off Ethereum. The blockchain systems are complex networks that only require new energy to reinvigorate.
Here are some of the things that could make Ethereum rise again:
- The “looming exit” of Vitalik Buterin could be a blessing in disguise. New ideas and energy that could be ejected could be the missing link that Ethereum needs to shoot back to the top.
- Unlike other platforms that are emerging today, Ethereum has been in the market for years. Having survived a serious threat such as the Child DAO attack, the chances are that Ethereum will also survive the current situation.
- For about three years, the Ethereum has built a large base comprising decentralized applications and is relied on by hundreds of ERC-20 coins in the industry. Therefore, revitalizing Ethereum could be easier than building another platform.
The Final Take
Ethereum has sunk to a point that a lot of people appear to be in agreement that it could be in its final days as a top coin. From a declining price in the market to DApps moving to competing networks, the network is facing a major test that could make or break it.
The answer to the question, “Will Ethereum rise again?” is that it will depend on the leaders of Ethereum and their future strategy. However, Ethereum cannot be simply written off. It will not die as easily as some people expect.
If the Ethereum development team is prompt in injecting new leadership and ideas to the network, it could become the next big thing in the crypto niche. “Will Ethereum rise like Bitcoin?” This is unlikely because it is already facing serious competition in the niche.
If you are looking forward to investing, Ethereum is not a good option today because of the negative price trend. However, be on the lookout because it could take an upward trend in the coming years if the leadership restructures this system.