Ethereum Istanbul's successful upgrade, will this change its valuation?
Vitalik Buterin previously claimed that after the upcoming Istanbul fork, Ethereum will support 3,000 transactions per second.
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Ethereum is slow
The conventional wisdom is that Ethereum is too slow. But for what purpose is it so slow? That seems fast enough for financial services. But the mistake people make when they say "Ethereum is slow" is to misunderstand what is a great thing, which, counterintuitively, is slow. ETH works because users want to pay (in the form of "gas") to perform computations.
If Ethereum is congested, it means that there are more people wanting to pay for Ethereum computation than there is capacity to allow it.
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The "world computer" is not a thing
So, it turns out to be computationally expensive to reach consensus, but still very expensive. Istanbul will make Ethereum's consensus a bit faster, but the term "world computer" seems hyperbolic, as it implies that there may be a single device that satisfies the world's computing needs, and it can't even reach 3,000 transactions per second speed.secondary title
DApp is not a problem either
What is a "distributed application" is a confusing metaphor. The term "app" is inseparable from the rise of the smartphone and the rise of the "app store". So once you say "DApp", you paint a similar world of infinite possibilities and creativity.
This flawed reasoning is compounded in the account of the creation of a Turing-complete "world computer" in Ethereum's original white paper.secondary title
vending machines are a thing
The price of consensus is why it makes more sense to talk about what Nick Szabo calls "the vending machine." If a line of code has no processing value, why not execute it in a faster, cheaper, more focused environment? This reduces practical applications for storing, transferring, buying, selling, dividing, sharing or manipulating value.
This means that practical applications will naturally be practical value-added, value-added smart contracts, such as decentralized exchanges, token swaps, non-fungible token sales, token issuance contracts, and lending and arbitrary financial products (DeFi).secondary title
Lending machine is also a thing
Smart contracts related to staking and lending digital assets are getting a lot of attention these days. On that note, ETH in particular has an advantage because it has a relatively large liquidity pool and very high programmability. DeFi means that there are all kinds of programmable digital financial products, but at present, the concept of "lending machine" has attracted a lot of attention.
Lending, in particular, seems attractive, as current DeFi protocols generate interest rates as high as 10%. This can be seen as the "killer app" of encryption technology,Because traditional banks have been close to 0% equity for a long time, which is a compelling reason for new users to use encryption."spinach"
"spinach"
Another obvious application is the "Spinach" application. This is a variation of a "decentralized exchange," but instead of exchanging a predictable amount of token for another token, users essentially exchange tokens for unpredictable returns. One of the advantages of smart contract-based "gambling" over other forms of online "gambling" is that,Checking the smart contract allows the player to determine whether the "spinach" is "provably fair",secondary title
need for speed
If all we're building are vending machines, lending machines, and "spinach," do we really need performance? Providers of “decentralized exchanges” insist that once they are fast enough, they will achieve the liquidity of “centralized exchanges”. But historically, liquidity has been moving to high-frequency trading venues, and trusted computing will always confer performance advantages over untrustworthy.
A big benefit of the performance boost is increasing the capacity of existing applications and enabling more similar applications to run on Ethereum.But the improved performance of Ethereum following the Istanbul upgrade seems unlikely to produce the types of applications that have not yet been seen.
This article was written by Miko Matsumura, general partner at venture capital fund Gumi Cryptos Capital and co-founder of the Evercoin wallet and exchange. He has been working on open source software projects in Silicon Valley for 25 years since the introduction of the Java programming language, and he is a key evangelist for the Java programming language. The Chinese version is compiled by the Bluemountain Labs team, and the English copyright belongs to the original author. Please contact the compiler for Chinese reprint.
