No currency is perfect, but Ethereum has more than its share of problems. The token charged by ICO lost 80% of its value from its peak and sold point 2 to XRP (which had to do badly). Now his own mission has been questioned. In a very publicized way tweet storm last week, the first bitcoin investor, Tuur Demeester, compared Ethereum a "The Yahoo of our days – an impassable cryptocurrency with a blue chip".
Ethereum is a leading blockchain network and the most active platform for smart contracts, according to ConsenSys data. Most of the major cryptocurrencies are Ethereum-based tokens. And the network boasts over 1 million transactions a day – not bad for 2014 standards, but far behind the last competitors.
The last rebound does not change the fact that the Ethereum project has much to prove to the community in 2019, after a lasting crisis of confidence that has questioned the value of the platform.
Ethereum faces an identity crisis
What do you do when most of your identity is linked to the launch of ICOs, which have since become taboo? It is an identity crisis that until today has not faced any cryptocurrency leader and Ethereum is still in its first decade of existence. According to Diar.coETH has received ICO cash withdrawals of nearly 400,000 ETH this month, the most severe month for withdrawals of the year. Diar also noted a "Drawdown 82K ETH of Tezos" in November.
The Dapp still need to achieve mainstream adoption
Ethereum is also a platform for creating decentralized apps (dApps), although this has a completely different set of issues. The blockchain hosts over 2,000 dApps, based on the status of the Dapp. But mainstream adoption remains an unattainable dream. The most popular game on Ethereum, My Crypto Heros, has just over 1,150 users a day. This problem is not exclusive to Ethereum, but it is still an embarrassment for the best intelligent contracting platform.
The competition for developers has reached new heights in the middle of recruitment wars with Ethereum, TRON and EOS, all looking for software engineering talents. According to ConsenSys data, Ethereum boasts "The largest community of developers in the world, almost 40 times that of other blockchains".
Is Ethereum Yahoo of Crypto?
Perhaps the biggest problem facing Ethereum right now is scalability. Even the Ethereum Developer Vlad Zamfir once admitted it "Ethereum is neither safe nor scalable." The update of Constantinople is scheduled for January 16, 2019, at which time the block premiums will be cut from 3 ETH to 2, resulting in a reduction in the supply of recently minted coins. The long-term effect should be "Decisively bullish" according to the economist and trader Alex Krüger.
But the platform will still have to adapt to an evolving blockchain landscape – one in which fifteen transactions per second and taxes of ten cents are no longer competitive.
If Ethereum is the "Yahoo of crypto", this could make Vitalik Buterin his Marissa Mayer. As Yahoo started to take the water, he dared to "Take a sinking ship and try to float it".
Vitalik, on the other hand, has been at the helm since the start and has not crashed into any iceberg – yet.
The author is invested in digital resources, including bitcoin, which is mentioned in this article.