The Austrian economist explains why he is pessimistic about the project Blockchain – Fili BTC

Of& nbspKapil Gauhar

Tuur Demeester, the Austrian economist, explained in a thread of 50 pointers explained why he was overly pessimistic about the blockchain project.

Most of these suggestions referred to previous Ethereum team promises to improve the main chain of blockchain scalability.

Ethereum can not climb?

For example, Tuur touched on a peer review report from Ethereum Casper or white paper, a solution that was proposed to scale the main network in 2014.

As the Austrian economist indicated, the review concluded that the Ethereum Casper Protocol was a theoretical solution that can neither offer the Ethereum blockchain nor solve its scalability problems.

In another case, Tuur told the followers that the developers of Ethereum were exploring a second-level solution, which is similar to that of Bitcoin's Lightning Network. However, he doubted that ERC20 tokens in the main chain were suitable for the second layer of Ethereum or not.

Test of the stake solution

Vitalik Buterin, the founder of Ethereum, proposed another "scalability solution" in 2017. However, he had to deal with an entire infrastructure review of the project. He suggested that Ethereum should move from PoW project to PoS project.

In Proof of Work, each miner must compete with other miners in the network to solve a mathematical problem by offering its computing power. The greater the computational power, the better the chance that miners solve the problem and get their hands on the reward of the block.

On the other hand, the Proof of Stake protocol allocates the right to mine for those with more coins. The rich miners take away a transaction fee rather than a block reward in return.

Demeester declared –

"Keep in mind that [PoS] it is not at all a new concept. PoW was actually one of the [biggest] innovations that made Bitcoin possible, after PoS was deemed impractical due to the vulnerability of censorship. "

He also added –

"This has been criticized by developers of P2P and OS as an imprudent notion, since amat contracts are actually a cryptographic de nova protocol – in other words, they are playing with fire."

Tuur Demeester also referred to reports that mention that Ethereum is a supercomputer in the world, with a perfect solution resistant to censorship.

Kapil Gauhar

Kapil Gauhar is the founder of Blogger's Gyan. He is a passionate blogger, a great thinker and a creative writer. His passion for making friends with words and making people aware of the wonders of the digital world is what drives him to write as a career.