Most people involved in cryptography believe that Ethereum (ETH) the second largest cryptocurrency by market capitalization, both a currency that will always be needed. However, there have always been theories that the ETH token could become obsolete and the network could function without good.
In a TechCrunch article Jeremy Rubin, a Bitcoin Core contributor and a Stellar technical advisor (XLM), argues that the ETH digital asset could become useless. The article has caused immediate disputes, with the Ethereum community defending the utility of ETH:
Rubin states that the Ethereum platform could be very successful, with the Ethereum Virtual Machine (EVM) used for decentralized applications (dApps), as promised. However, he argues that miners may choose to include transactions only for tokens, thus ignoring the need to pay for gas using ETH.
"If all applications and their transactions can be executed without ETH, there is no reason why ETH is valuable unless the miners apply some sort of racket to require users to pay in ETH But if miners are not coordinated, mutually disinterested and rational, they would prefer to be paid in assets of their choice rather than in something like ETH, "says Rubin.
"[I] a stateless ecosystem, replacing ETH is a Pareto Improvement (ie, all parts are better) .The only disadvantaged part is the existing ETH holders," he concludes.
In a long answer Reddit the co-founder of Ethereum Vitalik Buterin refuted this argument, stating that although it is possible in theory, the extinction of ETH is highly unlikely to happen, indicating two imminent changes in the Ethereum protocol.
"Economic abstraction can still happen at the user level, users could pay in Spankchain tokens, but blockers would still need to cough ETH.You could also use intermediate solutions, where third parties create "wrapper transactions" that take commissions for transactions from users who are paid into Spankchain tokens and third parties provide ETH to the blocker, "writes Vitalik.
counter-argument is that gas payments are always a part of the network's mechanism and can not be avoided. A further counter-argument is the intention to evolve the Ethereum into a stake test network (19659002). Similarly, Rubin said that the star network may have the same problem with XLM, as the resource becomes unnecessary.
Ethereum has seen arguments about its imminent failure even in the past, mostly from Bitcoin maximalists . However, for now, Ethereum shows stability, due to several factors. Initial coin offerings (ICOs) on the platform were very active in 2017 and 2018, and both the Ethereum network and the ETH assets were key to managing all those thousands of ICOs.
For now, most of all dApps and projects are built on Ethereum. There are only a few exceptions that go to new networks, such as EOS, Stellar and KIN, which has a dual project that uses both Ethereum and Stellar blockchains.
Not even the coins on the platform were able to move Ethereum. In fact, the Ethereum model has proved effective, giving rise to double asset models, as in the case of NEO, VeChain (VET) and other networks. The presence of other networks and systems, also influential as EOS, did not lead to zero Ethereum. On the contrary, other networks suffered a deep collapse, with assets such as NEO falling to $ 17 from surges close to $ 200.
The depressing market price of ETH is worrying, but for now it's early to say if the Ethereum Virtual Machine could work without the good, using only tokens as alternative payments.
So far, there has been no sign that the miners of Ethereum are ready to get rid of the ETH, leaving the good without use cases. After the news, ETH is trading around $ 288 on Monday at noon (UTC), down 1.4% on a daily basis.
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