One long-held critique of the Ethereum blockchain is that it has failed to successfully address the scaling issues that have longed plagued it. These scaling issues became abundantly clear in a recent report that elucidated how the blockchain’s network utilization has reached a whopping 90%.
This report has led one prominent figure within the crypto industry to slam Ethereum, calling it a “technological dead end” and even going so far as to say that it may soon “die.”
Ethereum Network Capacity “Almost Full” Due to Tether (USDT)
A recent report from Bloomberg explained that controversial stable coin Tether (USDT) is the current source behind Ethereum’s 90% network utilization, which may mean that on-chain transaction fees will soon surge to levels that lead many developers and users to move to other chains.
Although Ethereum’s nearly full network capacity is certainly an issue presently, it is important to note that many analysts and developers anticipate these issues to be resolved after the release of Ethereum 2.0, which will introduce Proof-of-Stake and sharding solutions to the chain, which is expected to fix ETH’s current scaling issues.
The first step to introducing ETH2.0 will be Beacon Chain, which is expected to be released at some point in the near-future.
Blockstream CSO Claims ETH is a “Dead End”
Samson Mow, a prominent figure within the crypto industry and the CSO at Blockstream, explained in a recent tweet that he believes that the Ethereum blockchain is a “dead end” that will ultimately “die.”
“Ethereum is a technological dead end. The more it’s used, the faster it dies. Fortunately, USDT is also available on the #LiquidNetwork which is more scalable and later will allow Lightning Networks to be created for assets like Tether,” Mow explained.
Ethereum is a technological dead end. The more it’s used, the faster it dies. Fortunately, USDt is also available on the #LiquidNetwork which is more scalable and later will allow Lightning Networks to be created for assets like Tether. 🌊⚡️ https://t.co/Fn5owRSRk0
— Samson Mow (@Excellion) August 27, 2019
Vitalik Buterin, the creator of Ethereum, responded to Mow by noting that Bitcoin’s network capacity is “also full,” eluding to the fact that scaling is an issue that is not unique to Ethereum, and major scaling solutions have not yet solved the problems faced by other major blockchains.
“You do realize that Bitcoin is also ‘almost full’ in exactly the same way ethereum is, right?” Buterin said.
You do realize that Bitcoin is also “almost full” in exactly the same way ethereum is, right?
— Vitalik Non-giver of Ether (@VitalikButerin) August 27, 2019
ETH2.0 will be a critical development for the future success of the Ethereum blockchain, but if it is unable to fully amend the issues currently faced by the blockchain, it could mean that there will be a mass exodus of developers and users away from Ethereum.