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Ethereum

Ethereum [ETH] running at “full capacity” says Parity developer; Vitalik Buterin disagrees

Anirudh VK

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Ethereum [ETH] running at "full capacity" says Parity developer; Vitalik Buterin disagrees
Source: Unsplash

Ever since the CryptoKitties dApp clogged the Ethereum [ETH] blockchain and brought it to a grinding halt, the argument for scaling the network has become louder and louder. Moreover, the network itself is seeing an exodus of value as ICOs on the platform are selling off the funds they raised.

Adding to this, Afri Schoedon, a developer working on the Parity client for Ethereum, recently asked users to “stop deploying dApps to Ethereum”, as it was running at full capacity.

He went on to ask developers to move to other chains such as Ethereum Classic [ETC] or POA Network [POA], a sidechain on the Ethereum network. His reasons for saying so was that these networks were still high on the capacity of transactions they can process. Moreover, they have existing support for infrastructures such as MyCrypto and MetaMask.

A quick look at block’tivity shows that Ethereum is indeed performing at full capacity, with around 68,000 transactions still in the mempool. This is a worrying development to those who have deployed dApps on the Ethereum blockchain.

Blockchain activity | Source: Block'tivity

Blockchain activity | Source: Block’tivity

Vitalik Buterin, one of the creators of the Ethereum blockchain, also offered his opinion towards the matter. He stated:

“Disagree. Most dapps have lots of room to gas-optimize, and even if *you* don’t your dapp running raises gas fees and pressures *others* to gas-optimize. There’s *plenty* of low-value spam on chain. And everyone should be looking into layer-2 solutions.”

Gas functions as Ethereum’s execution fee for every operation made on the network. Its price is usually expressed in Gwei, which translates to about 0.000000001 Ether. This price is decided by miners, who can refuse to process transactions with less than a certain gas price. Recommended gas prices are currently around 10, a far cry from the price being near 60 Gwei during CryptoKitties.

Buterin went on to say:



“There are layer 2’s without data availability tradeoffs or liveness requirements, eg. tx mass-validation via ZK-SNARKs can reduce costs to < 1000 gas per tx if done well. That’s ~500 tx/sec on-chain with all the security guarantees of on-chain.”

Other crypto-enthusiasts pitched in with recommendations for the network to replace ETH. User Ekpethedragon said:

“Codius exists and is currency agnostic, so you don’t have to use XRP if you don’t want to! Why are people so determined to hate what is good for them?”

User Josh, however, was skeptical. He stated:

“It is clear to anyone who objectively looks, that most people heavily invested in Eth were/are sold on promises and ideas, and gave no thought to the execution. The others were tricked, confused, oblivious, lazy, gamblers.”





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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

Bitcoin

Bitcoin Dominance Index [BDI] falls short of Bletchley Ethereum Token Index [BETI] in 2019

Biraajmaan Tamuly

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Bitcoin Dominance Index [BDI] outperformed by Index based on the Ethereum blockchain in 2019
Source: Pixabay

One of the key factors which is often used to represent or indicate the potential of a particular cryptocurrency’s growth is its market capitalization. When the market capitalization of a coin or token showcases a positive hike, it usually has a positive impact on that particular asset’s market.

According to LongHash, the Bitcoin Dominance Index [BDI], which is used to measure Bitcoin’s market cap had been the dominant index since the beginning of 2019. It was observed that the BDI improved from 53 percent to 58 percent over the past few weeks after the largest crypto-asset underwent multiple price hikes.

XRP, which dominated Bitcoin by 1,600% back in 2017 on cryptocurrency exchange Bittrex in 2017, was currently down by almost 50% against Bitcoin in 2019. Ethereum [ETH] fared better comparatively, but was still down by 14% against the Bitcoin.

However, the Bletchley Ethereum Token, a token built on top of Ethereum, seemed to have outperformed Bitcoin this year.

The Bletchley Ethereum Token Index [BETI] can be utilized by investors for their allocation to tokens placed on top of the Ethereum blockchain. However, it should be noted that Ethereum is not a part of the index as it is an independent entity. The BETI is a weighted index, which means that the tokens with dominant market caps will take up a larger part of the index and the re-balance will take place at the end of a particular month.

For example, Tron [TRX] and Binance Coin [BNB] currently take up more than half of the BETI’s Weighted Index. Since the launch of their DEX, BNB has enjoyed a lucrative year with multiple hikes bringing the coin to $30 from under $6. Tron also witnessed major growth in market cap as it was up by 40% in comparison to the US dollar.



However, it is important to note that the major tokens on the BETI’s weighted index have all launched their own blockchain, at press time. Hence, it can indicate that the dominance enjoyed by BETI over the BDI over the last few months could point to a situation where the Ethereum blockchain was preferred for the launch of various tokens.

Despite the aforementioned reason, it is safe to state that Bitcoin was not the only entity which dominated the crypto-space this year.





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