What's wrong with Ethereum now?

Ethereum has experienced all kinds of ups and downs in the blockchain field. As a project that introduces virtual machines and smart contracts into the blockchain for the first time and creates a new era of blockchain, it is worth discussing and discussing in terms of progress and future. think.

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The price of Ethereum is volatile, and the overall decline has been relatively large recently

The recent wave of small bull market in 2019 brought Bitcoin and its forked coins into a state of carnival. BTC led the rise, and forked coins such as BCH and BSV also rose significantly. Since then, several platform coins led by OKB have also risen accordingly. However, the performance of public chain currencies represented by ETH is not impressive.

In addition to ETH, the recent high prices of the top three public chain projects EOS, TRX, and ADA by market value are only equivalent to 37%, 18.2%, and 8.7% of the highest prices in history, respectively. The performance of ETH in this wave of Mavericks is even more unsatisfactory, and even made a large group of people lose confidence in ETH.

On June 27, 2019, the price of Ethereum was reported at $366, reaching its highest point in recent times. This price has risen by 352% from the previous historical low of US$81 in December 2018, which is very good for this result. It is 25.7% of $1422 in January 2018. However, after reaching the highest point on June 27, the price of Ethereum began to pull back, with the lowest reported at $192, a 44% drop from the high point on June 27. Although it has now pulled back to $220, the decline is still At 39.9%.

According to the same statistical rules, also on June 27 this year, the price of Bitcoin was reported at $13,968, hitting a recent high. This price is 341% higher than the previous historical low of $3,165 in December 2018, and 70.3% of the previous historical high of $19,875 in December 2017. Since then, the price of Bitcoin has started to pull back, with the lowest reported at $9,056, a drop of 35.2% from the high point on June 27. It has now pulled back to $10,105, and the decline has been reduced to 27.6%.

Obviously, the rise of Bitcoin has absorbed the blood of other currencies in the currency circle, especially Ethereum. Due to the large increase in Bitcoin and its stability compared with other currencies, many investors in Ethereum have switched to Bitcoin. Therefore, in a great bull market, Ethereum still has not made much progress, which directly caused dissatisfaction among fans. And the pointing of the outside world.

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EIP-2025 was ridiculed by the crowd

A few days ago at the Ethereum core developer meeting on July 18, the Ethereum team expressed consideration for EIP-2025 as an improvement in the Istanbul upgrade. This move will increase the inflation rate accordingly, so it has caused controversy in the community, and there are endless voices of opposition.

The idea is to propose increasing the amount of ether created per block over 18 months, and then the newly added

Funds go to a funding organization, which in turn drives the growth of the Ethereum ecosystem.

Ameen Soleimani, CEO of Spankchain, is one of the high-profile critics. He said: 1. Ethereum 1.x will be obsolete by design, and the value invested in it will only deteriorate in a few years; 2. The increase in circulation , would be detrimental to Ethereum as a store of value.

Additionally, Ryan Adams, founder of cryptocurrency firm Mythos Capital, Anthony Sassano of SetProtocol, and David Hoffman, director of operations at RealT Platforms, have all expressed opposition to the proposal. Groundhog Pay Chief Technology Officer Andrew Redden called "EIP-2025 a disaster."

Others who joined the criticism camp include: Ryan Adams, founder of encryption investment company Mythos Capital, and David Hoffman, director of platform operations at RealT.

And the person who proposed to increase the Ethereum inflation rate this time. But he hadn't figured out how to best use the increased funds. Currently, his idea of ​​"creating a DAO and distributing the funds" is not popular.

It has been said bluntly that if developers get block rewards, they will go to the beach and enjoy themselves instead of improving Ethereum. If this proposal is adopted, it can only be said that the development of Ethereum is too radical. But in the end, this absurd proposal only got ridicule from the outside world and disapproval from the inside. Not only could it not effectively pull Ethereum, but it also made people laugh after dinner.

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Ethereum 2.0 in progress

The impact of the bear market, constant publicity and "hype", internal conflicts and other unfavorable factors have caused many people to lose confidence in Ethereum. Coupled with the departure of Ethereum core developer Ari, most community members began to question the project.

As early as the end of May 2017, the game Obsessed with Cats on Ethereum became popular, and the price of Obsessed Cats has also been continuously raised. The price of a rare breed of encrypted cats is as high as 120,000 US dollars. However, Ethereum was hacked in July and user tokens were lost in November. The security issue is still the sword of Damocles hanging over Ethereum. The success of Obsessed with Cats also exposed the long-standing problem of Ethereum as a platform - low TPS. This incident also accelerated the advancement of Ethereum 2.0.

On June 29th, V God gave a speech on the theme of "Ethereum 2.0 Cross-shard Transactions" at the "2019 Second Ethereum Technology and Application Conference", introducing the core sharding technology and beacon chain of Ethereum 2.0 mechanism. And can the slow-moving Ethereum 2.0 save Ethereum from crisis?

Although the recent noise about Ethereum governance is loud and uncomfortable, it has not delayed the development progress of Ethereum 2.0.

Through the data analysis of the top 50 blockchains in the world, it is found that the status of Ethereum is still unshakable. Although it has not performed well in the secondary market recently, it is the most mature decentralized application and smart contract company in the market. Ethereum still bears the brunt of the choice of giant companies, and 22 of the 50 companies use Ethereum for development. Most investors said they would pay close attention to the development of encryption projects, especially the development progress of Ethereum 2.0.

The achievements of Ethereum 2.0 are undoubtedly unique, but in the R&D work consisting of 8+ researchers and 50+ developers urgently, the challenges it faces are usually encountered. With stronger coordination, standardized processes, a well-communicated shared roadmap, and stable funding, the agenda for Ethereum 2.0 to be productive will accelerate and align with the expectations of the Ethereum community.

The current state of Ethereum may be an essential stage of ecological development, and the current predicament of Ethereum should also be temporary. After all, Ethereum once created a new era of blockchain and will not fall down easily. And Ethereum 2.0 is likely to become the biggest opportunity for Ethereum to come back. Undercurrents are surging inside Ethereum. I believe that in the near future, a big move will be released to revive the glory of Ethereum. We have hope, and Ethereum will also have hope.