How does Ethereum fall into a technical dead end?
Once again, the network was congested. How was the Ethereum, the king of the public chain, which was once known as Bitcoin, break?
On August 28th, Blockstream Chief Strategy Officer Samson Mow forwarded the report of Bloomberg's "USDT issuance caused the Ethereum network to be blocked, the Ethereum blockchain is almost full" and commented: "Ethereum is in the expansion of the dead end, it is used more and more More will die faster. Fortunately, USDT has launched a new version on Blockstream's LiquidNetwork. Liquid can provide faster transaction speed and larger transaction volume. In addition, Liquid network access lightning network will be like USDT. Such assets create lightning networks.
In response, Ethereum founder V God commented: "Do you know that Bitcoin network capacity is almost the same as Ethereum?"
Samson Mow responded that the two are very different and that all blockchains will not expand, but the situation in Ethereum is even worse. Bitcoin is used to verify transactions, and Ethereum is used to fill and calculate various irrelevant data.
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It is reported that the data research institute Ethgasstation.info data shows that in the past 30 days, the ETH cost for processing USDT transactions is as high as 260,000 US dollars, about 17.5 times higher than CryptoKitties, which is the decentralized exchange IDEX. Six times.
According to data from Etherscan.io, Ethernet network utilization has soared to 90%. As the capacity occupied by USDT transactions grows, the capacity available to other developers decreases, resulting in network congestion.
The scalability has been criticized, the ICO has gradually declined, and the market value has shrunk. The former king of the public chain, Ethereum, needs to break the deadlock.
VitalikButerin (V God) said in an interview with the mainstream Canadian news media The Star that the current obstacle facing Ethereum is scalability.
“Extensibility is a big bottleneck in Ethereum, because the Ethereum blockchain is almost full. As the utilization rate increases, the transaction cost of Ethereum increases, which makes potential business users use Ethereum. Take a wait-and-see attitude," V said.
At present, in addition to the Ethereum blockchain, some developers have begun to try other blockchains. For example, Tether also issues USDTs in blockchains such as Omni and Wavefield. Ethereum tried to adjust its technology to increase network capacity.
In addition, since the beginning of 2019, the rise of the IEO model has made the fundraising behavior tend to focus on the exchange, thus omitting the steps of raising funds through the Ethereum ETH on the Ethereum, and the decline of the ICO model has decreased. An important application scenario of Ethereum, together with more than 90% of ICO projects breaking zero, further accelerated the decline in ETH prices.
According to the InWara report, the amount of ICO financing and the number of projects in 2019 are inconsistent with the huge amount of funds and quantities raised in the previous two years. In the first half of 2019, 403 projects were financed through ICO, which is lower than the first half of 2018. 74%.
At present, Bitcoin once again broke through 10,000 US dollars, while Ethereum, which ranked second in CoinmarketCap, did not stand at the $1,000 mark. The highest price of Ethereum has reached nearly 1,400 US dollars, the current price is 186 US dollars, the price difference is nearly 8 times, the market value is lower than this June.
Source: Financial Network · Chain Finance
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