Vitalik Buterin: Ethereum Needs to Evolve or Else it will be Valueless, Two Proposals Emerges

Sep 05, 2018 at 11:40 // News
Author
Coin Idol
In an article published on TechCrunch, Crypto entrepreneur Jeremy Rubin specifies the ETH price is ready and bound to dive.

The future of Ethereum (ETH) has come under scan with major claims that the cave in of its Crypto is unavoidable, and Vitalik Buterin, an ETH cofounder agrees at the moment.

In an article published on TechCrunch, Crypto entrepreneur Jeremy Rubin specifies the ETH price is ready and bound to dive. 

“In Ethereum as it presently exists, this is absolutely true,” Buterin said in a post on Reddit. “And in fact if Ethereum were not to change, all parts of the author’s argument […] would be correct.” 

Economic Abstraction 

Jeremy Rubin, a Crypto entrepreneur, stressed out claims on the article that is on TechCrunch. ETH, the author says, has issues with scaling and smart contract security that bring to an incapability to outdo competitors. All this will certainly result to a cave in by 'economic abstraction.' 

The concept of economic abstraction is essential to Jeremy's arguments - if at all owners of smart contract are capable to out bring their contracts and settle gas costs in ERC-20 tokens instead of ETH, it would give the asset superfluous. It will also lower its value: 

“Instead of paying for Gas in ETH, we could make every BuzzwordCoin transaction deposit a small amount of BuzzwordCoin directly to the block’s miner’s address to pay for the contract’s execution. Paying for Gas in a non-ETH asset is sometimes referred to as economic abstraction in the Ethereum community.” 

There are several problems with Jeremy's line of argument. Vitalik himself reacted to the article on Reddit, repulsing many claims made by Jeremy. 

Two Proposals to Enshrine ETH 

In fact, Vitalik does acknowledged that Jeremy is, in part, right. But Vitalik explicitizes that ETH can hustle and overlive by being able to transform, evolve and develop. 

Nevertheless, Vitalik agrees that the ETH community is planning two great proposals, which, if done, would protect ETH at a native protocol level. 

Fundamentally this implies that ETH would be needed to pay Gas. In so doing, this forms a structure by which the "...value of ETH... is very much nonzero," Vitalik noted on Reddit. 

Considering on how long it takes the community to effect these great proposals, ETH might have an unsure less weeks or few months ahead.