Ethereum must evolve or the ETH will become worthless

The future of Ethereum ETH has been examined with the assertion that the collapse of its cryptocurrency is inevitable. The co-founder Vitalik Buterin is now in agreement.

In an article published on TechCrunch, the cryptocurrency entrepreneur Jeremy Rubin states that the price of ETH, the underlying digital asset of the network, is destined to collapse.

"In Ethereum as currently exists, this is absolutely true," Buterin said in a post on Reddit. "[A] nd indeed if Ethereum does not change, all parts of the author's argument […] would be correct."

The cryptocurrency entrepreneur, Jeremy Rubin, made the claims in an article on TechCrunch. Ethereum, the author claims, has problems with the downsizing and security of the smart contract that lead to an inability to compete. All this will inevitably lead to collapse with "economic abstraction".

Economic abstraction is an expression used to describe the payment of transaction fees or smart contracts (gas), in a token that is not a member of the Ethereum network. Rather than paying for gas in ETH, the owner of a smart contract would pay in the native token of his contract, probably based on the ERC-20 standard.

The concept of economic abstraction is crucial to Rubin's arguments: if all the intelligent contract the owners are able to deliver their contracts and pay the ERC-20 token gas commissions rather than ETH, making the 39; redundant activity.

Instead of paying for Gas in ETH, we could ensure that every BuzzwordCoin transaction deposits a small amount of BuzzwordCoin directly to the address of the block miner to pay for the execution of the contract. Paying for gas in a non-ETH resource is sometimes referred to as economic abstraction in the Ethereum community.

There are a number of problems with Rubin's argument line. Vitalik Buterin himself even replied to the article on Reddit, repeating some statements made by Rubin.

In fact, Buterin admits that the Rubin is, in part, correct. But Buterin makes it clear that Ethereum can survive thanks to its ability to evolve and develop.

However, Buterin states that the Ethereum community is considering two proposals, which, if implemented, could sanction the ETH at the native protocol level.

Basically this means that ETH would be required to pay the gas. In this way it creates a structure based on which the "… value of ETH … is very different from zero", says Buterin on Reddit.

Depending on how long it takes the community to implement these proposals, Ethereum may have a few weeks uncertain or months before.

Published September 3, 2018 at 3:53 pm UTC

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