The decentralization of Ethereum [ETH], the world’s second largest cryptocurrency and leading smart contract platform, has always been questioned by many in the cryptocurrency community. This time around, Jimmy Song, a Bitcoin proponent and coder, posed two scenarios, asking what the outcome would be.
Interestingly, both scenarios were related to Vitalik Buterin, the creator of Ethereum. The first concerned a hard fork ordered by a court in the United States, where the users who lost money due to the parity bug would gain back access. The second pertained to the outcome: What if Buterin refused to comply with the orders?
Jimmy Song tweeted,
“Honest question: what would happen if a US court orders Vitalik to hard fork ETH to allow people who lost money on the parity bug to recover it? Further, what happens if Vitalik refuses, is found in contempt and starts sitting in jail?”
In November 2017, Parity released an official statement on Twitter about a bug in Parity multi-sig wallet that was accidentally triggered. The vulnerable smart contract that was deployed in July 2017 resulted in Ethereum worth over $280 million being frozen. Out of these funds, over $150 million was Polkadot’s funds, procured via an Initial Coin Offering.
Song’s question gained a lot of traction from the Ethereum community and other communities as well. It also grabbed Vitalik Buterin’s attention, who stated that this question was raised in the past, attaching the link to a video where he addressed these concerns.
The link redirected to TechCrunch 2018, where Buterin spoke about ‘Decentralization in the face of threats.’ Here, Buterin had presented a scenario where a third-party was pointing a gun to his head, asking him to write a hard fork patch. In this case, Buterin stated that he would “definitely write a hard fork patch.” He said,
“[…] I will write up the code, I will publish it, I will do everything they say. If I do this, if I publish a hard fork patch to delete a bunch of accounts, how many people here would be willing to download and install the update and switch to that chain. I see relatively few raised their hands, this is called Decentralization.”
Jamyye, a Twitter user, commented,
“Anyone can code up a hard fork. It’s up to the community (pool owners, miners, full node operators, developers, exchanges) to decide which version of software to run. In the end, its all about the users who choose to use a version over the other, or none at all.”
However, this was followed by some questioning the outcome of the DAO hack, the cause for Ethereum’s chain split. Andres G Aragoneses, a Twitter user, said,
“good answer, but funnily enough, this actually didn’t happen with the DAO hard fork (and nobody knows if there were actually people with guns pointing to Vitalik’s head! heh)”
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Bitcoin: Would you rather HODL Bitcoin or trade? ex-CTO of Coinbase opines on investing in cryptos
With the inception of Bitcoin and the advent of altcoins, there has never been a good chance to make quick money by simply investing. The last time such an opportunity was seen during the DotCom bubble. However, scams are also a part of this opportunity which became more than evident during the ICO frenzy of 2017.
Millions, if not billions were lost to the ICO scams, which caused the regulatory bodies like SEC, CFTC, and others to step in to protect investors. As the space matured over time, so did the actual number of projects in the ecosystem; there are more than 3000 cryptocurrencies with different and implied use-cases, which is confusing to most of people in the crypto industry and to the people outside of this space as well.
The ex-CTO of Coinbase, Balaji Srinivasan tweeted in support of the above; how an investor who is not familiar with the crypto space should go about investing. Srinivasan said that there were a few people who can be profitable and can beat the market, however, he added that “buying BTC in crypto” was like “buying vanguard in traditional equities”.
Investing in traditional assets or Bitcoin, for people who are inexperienced should be a longterm investment, hence the best thing to do with Bitcoin is to stack and/or HODL.
The DotCom bubble pushed the innovation to its maximum which led to the birth of massive companies like Google, Amazon, Uber, etc. The same can be said for Bitcoin, which led to the development of Ethereum [ETH], which is the second largest cryptocurrency in terms of market cap. However, Ethereum brought smart contracts to the world, which has further led to the development of dApps and other use-cases.
1) ETH is/was also both a phenomenal investment and a major technological breakthrough.
2) Some other digital assets are very promising; I don’t believe innovation ends with BTC and ETH.
But for the person outside the space who wants exposure, just buy BTC.
— Balaji S. Srinivasan (@balajis) June 22, 2019
The bottom line with the Srinivasn’s tweet thread for the people who are inexperienced with crypto space was to just buy Bitcoins and hold it rather than trading it.
A Twitter user @mskvsk, reflected Srinivasn’s tweet as he replied:
“Buying BTC, dollar-cost averaging, forgetting about it for several years. This is the soundest strategy for most people. #stackingsats”
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