Infighting, loss of fans, insufficient balance, can the myth of Ethereum continue?
Editor's Note: This article comes fromStar Media STARMEDIA (ID: Star_Media1), Author: Darcy, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Star Media STARMEDIA (ID: Star_Media1)
Star Media STARMEDIA (ID: Star_Media1)
, Author: Darcy, reproduced by Odaily with authorization.
As of the time of publication, the price of ETH is only $129, a drop of 64.7% compared to the highest price of $366 in June 2019, and nearly 91% compared to the highest price of $1,397 in January 2018.
On December 25th, Christmas Day, an Ethereum address starting with "0x600" performed a transfer operation of up to 92,000 ETH. As soon as the transfer occurred, some people suspected that the "giant whale" was probably an ETH developer or V God Himself". In just a few hours, the panic continued to ferment, and more and more users speculated that Vitalik and related investors were conspiring to sell Ethereum on a large scale.
Afterwards, the situation changed. V God himself denied the matter on Twitter, and the real seller also surfaced, although not V God himself, but also an early founding member of Ethereum.
After the truth was exposed, although the Ethereum community breathed a sigh of relief. However, this matter is like a mirror that reveals the various problems existing in Ethereum, and the future of Ethereum is also doubly doubtful.
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The ecology of currency prices has shrunk, and Ethereum has suffered a wave of sell-offs
Ethereum is currently in a down-sell-down death loop.
According to State of the dapps data, the number of DApps currently running on Ethereum has reached 2,717. Ethereum has opened a convenient door for currency issuance projects around the world. Since 2017, the Ethereum ecosystem has prospered due to the active global currency circle and the hype of DApps. Ethereum has become the main channel for currency issuance. As more and more projects go online, the functions of Ethereum itself are gradually being ignored, and more focus is placed on the wealth effect brought about by its currency issuance function.
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Source: State of the dapps
Ethereum ushered in a sell-off wave.
Source: Tokenview
In addition to retail investors, projects financing in the ICO stage are also continuing to sell ETH. According to Tokenview data, in the past week, there have been 3 transfers of "more than 50,000 ETH", with a maximum transfer amount of 139,000 ETH; in addition, there have been two Binance wallet address transfers, with a total of 92,000 ETH. The data also shows that an ICO participating address (0x51f9c432a4e59ac86282d6adab4c2eb8919160eb) is suspected to have dumped nearly 300,000 ETH in the past few months.
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Funding crisis of the foundation, large-scale withdrawal of funds from the project
Source: Twitter
Under the weak currency price, not only the ecological users of Ethereum, but also the Ethereum Foundation (EF) itself are caught in the sell-off wave.
On October 25, Jeffrey Wilcke, a member of the founding team of Ethereum, cashed out 92,000 ETH. Although Jeffrey Wilcke clarified on Twitter afterwards that the cash out was only due to his own game development needs, not to smash the market, the price of ETH still fell by about 0.7%.
Source: Twitter
In addition, V God has also participated in the sell-off over the years. Since 2015, V God’s main Ethereum wallet has dumped a total of about 545,000 ETH for the purpose of Ethereum construction. According to statistics, the annual cost of the Ethereum Foundation is as high as 20 million U.S. dollars, and sometimes even burns about 2 million U.S. dollars a month; although part of this is external donations, such a high cost will sooner or later leave the foundation Approximately $88 million in Ether was consumed.
For a long time, despite the continuous output of huge amounts of funds, the advancement of the Ethereum protocol has been very slow. Under great pressure, the Ethereum Foundation began to reduce expenditures and withdraw funds from projects.
On December 6th, Nina Breznik, an engineer who has worked in the Ethereum Foundation for many years, broke the news on Twitter that the PlayProject project she personally participated in had been kicked out of the funding list on December 1st, and said that the Foundation plans to release funds next year. Divestment of other more projects.
The 2.0 upgrade has been repeatedly delayed, and the opponents are eyeing
Wearing the aura of Blockchain 2.0, Ethereum was born with the glory of "catching up with Bitcoin".
According to data from the investment company Electric Capital, about 800 active developers develop on Ethereum every month. Ethereum has successfully brought the blockchain from the underlying technology to a broader three-dimensional ecosystem. However, it is experiencing a new The test of - order of magnitude. When developers flocked to Ethereum by an order of magnitude, Ethereum began to suffer from protracted congestion, and the transaction speed of 20 TPS was far from meeting the needs of the market.
Shopping malls are like battlefields, and public chains that surpass Ethereum will appear at any time. According to the latest quarterly report of Dapp.com, the number of active Dapp users of the Tron and EOS public chains has surpassed that of Ethereum. According to the data on DAppReview, Ethereum also lags behind in terms of active users, transaction volume, and number of transactions.
Source: DAppReview
Ethereum 2.0 upgrade is imminent.
However, due to the delay in the development of the PoS mechanism, the Ethereum 2.0 upgrade has been delayed.
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The main node continues to "lose fans", and network security is worrying
The long road to transformation of Ethereum is causing the loss of miners and the reduction of nodes.
In the process, the difficulty bomb in the transition stage has exploded several times, and mining has become difficult and unprofitable. For this reason, the Ethereum team has been delaying time through hard forks. However, as a direct result of the two forks, the supply of ETH dropped sharply, and a large number of miners fled to Ethereum.
Source: Etherscoin official website
During the cryptocurrency boom in 2017, the number of Bitcoin nodes was around 5,000. Meanwhile, Ethereum nodes are around 25,000. Today, the number of Bitcoin nodes has surpassed that of Ethereum. The number of Ethereum network nodes has dropped sharply in 2019. It is estimated that a total of 3,000 nodes were lost, most of which were lost after the hard fork in December.
In 2019, negative events occurred frequently, and the attitude of the Ethereum community towards Ethereum became more and more hostile.
2020 will be a critical time point to determine whether the "king of the public chain" of Ethereum can sit still.
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2.0 Indefinite, DeFi continues to live?
Currently, the consensus among ethereum developers is that many of ethereum's problems are related to its inherent shortcomings such as speed and scalability.
In order to solve this problem, the Ethereum team has devoted most of its energy to the research and development of Ethereum 2.0 in the past few years. But at the Devcon 5 Ethereum conference in October 2019, Vitalik said, "This road is still very long. Phase 0 is in the first quarter of 2020 (mainly responsible for building the PoS chain Beacon), and there will be more There is Phase 1 (sharding), Phase 2 (eWASM virtual machine), Phase 3 (off-chain state storage) and Phase 4 (sharding contracts).”
Therefore, before 2.0 came out, Ethereum launched DeFi (decentralized finance) "life extension".
Source: Internet
In 2019, DeFi has been one of the talking points of many crypto investors and enthusiasts. DeFi still relies on the smart contract function of Ethereum. So far, almost all DeFi projects have been developed on Ethereum.
DeFi products include decentralized loans, decentralized exchanges, decentralized derivatives, or decentralized stable currency issuance. DeFi products and protocols allow the rules (and results) of financial interactions to be written in code without permission. realized by blockchain.
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Source: Internet
According to the design of DeFi, a large number of DeFi protocol lock-ups and pledge requirements for PoS transfer, the demand for ETH in this round far exceeds that of ICO. Most of the DeFi protocols are deployed on Ethereum, and the prosperity of open finance is enough to allow Ethereum to regain enough asset stickiness, which in turn accelerates the consolidation of Ethereum's network effects before the arrival of 2.0. Ethereum has also transformed from the first line of ICO investment and financing into a financial chain, connecting to the global value settlement network.
