Challenges Of Scaling : Ethereum Hits A Dead End ?

The Ethereum Coin and network have been poised to compete with their likes of Bitcoin for a while now with the market cap making its way to more than half of the market cap of Bitcoin itself !

ethereum crash

The problems have already begun showing as the entire ethereum network was brought to a crawl during the Satus ICO. The ICO did raise well over 180 000 Ether Tokens in funding but essentially clogged up the entire network slowing transactions for other users using the token too. This sadly caused many holders to quickly sell their tokens while shorting markets as the limited availability of tokens caused considerable panic.

“There might be many different scenarios how [the scaling dilemma] could unfold. Therefore I expect there will be quite some price volatility or maybe ‘flippening’ to other chains like ether,” he said. “This might be the event that makes ether more valuable than Bitcoin by market cap.”

 

The current solution purposed for the future of Bitcoin remains the segwit2x project which while having the support of the majority of miners and developers, has left many consumers split regarding the nature of the blockchain after implementation as essentially two protocols may be developed. There will be Bitcoin core which is the current blockchain and the future, Bitcoin unlimited. This is predicted to be disruptive but the fact remains your Bitcoin will remain safe no matter what the outcome is. This is also the challenge presented to the ethereum platform which has seen its very own blockchain grow much larger than Bitcoin, rowing to well over 200GB, making it unmanageable and inaccessible for many.

To conclude, the prices of Ether are currently reflecting a bullish trend it would be unadvisable to purchase Ethercoin currently. The question does remain how the coin will adapt to its growing user base. While few actually make use of the ether coin itself, it is the strain being placed on the network from huge ICO’s which rely on the platform to accommodate funding needs. As with many analysts it’s been advised to monitor the markets for further movements as depending on the solutions brought by the development team to growing transactions fees, a huge and unmanageable blockchain, Ethereum may yet be able to withstand the growing pains that Bitcoin too is facing.

Tags from the story
, , , , , ,
Written By

Hi I'm Aleppo Allesadero a experienced bitcoin user and educator. Having worked for over a year in the bitcoin journalism ive seen bitcoin grow from strength to strength asserting its power against fiat currency. Hopefully you too can learn about this exciting new prospect which may help transform the way we see finance and economy on a daily basis.

Leave a Reply

avatar
  Subscribe  
Notify of