фото показано с : blokt.com

Writing on TechCrunch, Bitcoin Core Contributor, Jeremy Rubin recently argued that the Ethereum network’s native Cryptocurrency’s value might go down to zero. Quoting his exact words from the article he said:

“Here’s a prediction. ETH — the asset, not the Ethereum Network itself — will go to zero.”

He goes on to say that several problems with the network, including scalability issues, lack of widespread adoption and failure to adopt safer contract authoring practices could lead to the eventual loss of value for ETH. Rubin suggests that there are chances that Ethereum succeeds while its native coin doesn’t do as well.

Rubin highlights the value proposition of the Ethereum network which is a decentralized platform running smart contracts on a blockchain framework. He suggests that there is no value proposition for ETH in the official description of the network.

He explains the use of ETH using a fictional decentralized application called BuzzwordCoin. He explains:

By default, following a standard ERC-20 Token template, every transaction on BuzzwordCoin will pay gas in $ETH. Requiring every BuzzwordCoin transaction to also depend on ETH for fees creates substantial risk, third party dependency, and artificial downwards pressure on the price of the underlying token.

Instead of using ETH, he suggests that every time a BuzzwordCoin transaction is made, a small amount of BuzzwordCoin is deposited directly into the block miner’s address. This amount could pay for the contract execution. This concept is called economic abstraction. The revised contract will not depend on ETH while incentivizing miners at the same time.

Four primary counterarguments must be addressed before Ethereum can follow economic abstracting. Lack of software support, difficulty in token pricing, the existence of non-tokenized contracts and Proof-of-Stake may make ETH integral for the network.

However, Rubin suggests that all these arguments fall flat as uncoordinated miners, who are rational and mutually disinterested would always prefer to be paid in an asset they choose instead of a coin like ETH. In fact, some risk-averse users may want to avoid dealing in a volatile asset like ETH.

He said that unless miners make “some sort of racket” that makes ETH payments mandatory.

Ether’s Value Could Drop down To Zero Eventually Says Bitcoin Core Contributor was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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