BTC economist calls out Ethereum for being nothing more than a science experiment

BTC economist calls out Ethereum for being nothing more than a science experiment
Dec 29, 2018 by Rico Wise

Tuur Demeester, an Austrian economist that is famous for his anti-Ethereum stance, pointed out his reasons of doubt regarding the blockchain company. Most of his arguments refer to the earlier promises of Ethereum’s developers to advance the scalability of the main chain.

For example, Demeester provides a peer review report of Casper/Sharding whitepaper of Ethereum, both the mainnet scaling solutions offered five years ago. Per the review, the Casper protocol was a theoretical solution at best, practically being unable to bring neither formidable security, nor resolve the problem of scalability for the blockchain platform.

Demeester also brings another example, in which he recalls that the developers of Ethereum used to explore a second-layer solution akin to the BTC’s Lightning Network. Nevertheless, he was pessimistic regarding the compatibility of the ERC20-based tokens with the said second layer.

Back in 2017, Vitalik Buterin, the creator of Ethereum, offered one more scalability solution, which involved an overhaul of the entire Ethereum’s infrastructure. He proposed a transition from PoW to PoS for the project. In PoW concept, every cryptominer must contend others on the platform to resolve the mathematical issue via provision of their computing power. The more power there is, the higher the chance for the cryptominer to solve the issue and obtain the block reward. In case of PoS, the protocol gives the right to cryptomining to the ones with the most coins in possession. For this, the rich cryptominer receives his cut in the form of transactions fees rather than block rewards.

Demeester is wondering why PoS, which is not exactly a brand new concept, was chosen so late in Ethereum’s development.

Furthermore, Demeester claims that Ethereum is a highly overbought asset class due to the agiotage around it from the very beginning. Per him, Buterin made a promise of autopia, and there are no chances for it to live up to expectations.