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Jeremy Rubin, a technical consultant of Stellar, a collaborator of Bitcoin Core, consultant for early crypto startups, and founder of the MIT Digital Currency Initiative, said Ether (ETH), the native cryptocurrency of the Ethereum blockchain network, will eventually lose its value and reach zero.
"Here's a prediction: ETH – the asset, not the Ethereum Network itself – will go to zero," Rubin said, noting that if decentralized applications (dApps) and ERC20 can be performed on Ethereum protocol without using ETH to cover gas costs, so there is no value for ETH.
Rubin added:
"If all applications and their transactions can be executed without ETH, there is no reason why the ETH is valid unless the miners apply some sort of racket to require users to pay in ETH But if the miners are not coordinated, mutually disinterested and rational, they would prefer to be paid in activities of their choice rather than in something like ETH. "
Vitalik Buterin and Gnosis Founder Respond
Ethereum co-creator Vitalik Buterin and the founder of Gnosis Martin Koppelmann responded to Rubin's claims, both acknowledging the merit of Rubin's argument.
Currently, there is no requirement for gas in a Ethereum smart contract and in this sense, it is possible that one dApp with its own token pay gas to transmit its intelligent contract through the blockchain network Ethereum compensating miners directly with its own token instead of gas .
If a token ERC20 on Ethereum decides to follow the scenario presented by Ruben and makes a small amount of the deposit of the transaction with a token rather than ETH directly to the miner address of the block to pay the execution of the contract, then it would be possible to question the value and the need for ETH in execution smart contracts .
But the whole request is premised on the assumption that the network Ethereum will not implement a strict requirement for gas in an intelligent contract Ethereum [19659004]in the future. After all, Ethereum is the most active open source developer community that can implement solutions to solve various problems.
Koppelmann said that Ruben's claims are accurate, once Ethereum [19659004] begins to request the inclusion of the Eth as gas in smart contracts so the subject falls apart. He added:
In fact they are 90% here. However – the whole topic falls apart as soon as ETH is in some way required to create blocks (for example to stake out in POS).
Willing to bet that this will be the case. @JeremyRubin https://t.co/UYYED5iP8b
– Martin Köppelmann (@koeppelmann) 3 September 2018
On Reddit, Buterin explained, as Koppelmann said, two proposals which are currently under development which would increase the importance of ETH at the protocol level so that each smart contract is required to pay gas in the ETH to be Ethereum mainchain [19659019].
Buterin wrote:
"In Ethereum as currently exists, this is absolutely true, and indeed if Ethereum should not change, all parts of the & # 39; author's argument (except the part on the pole test that would not apply to Ethereum as it is today) would be correct, however, the community is seriously considering two proposals, both with the property that enshrine the need to pay ETH at the protocol level, and moreover the ETH gets burned so there is no way to actually take it out from the lap making the cycle of medium of exchange go faster. "
A solution in progress
A draft proposal entitled" Positioning the document on the price of resources "to which Buterin refers to support his argument makes the blocking proponent, which technically can he had to charge fees in tokens like EOS and Tron, responsible for paying the minimum. tax with ETH.
As such, the activation of the proposal would eliminate the need for manufacturers of blocks to accept tokens instead of ETH, if they are required by the protocol to cover the minimum with ETH.
Proposals such as improving the price of resources will create a highly inefficient environment for miners if they decide not to accept ETH for gas but a token ERC20 which would incentivize the overwhelming majority of miners to accept ETH as [194501201] cover
cover by Alexander Milo on Unsplash
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Author
Joseph Young
Joseph Young is a finance and technology journalist based in Hong Kong . He has worked with leading media and news agencies in the fields of technology and finance, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.
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