The Capital
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The Capital

(Photo Credit By Andrea Piacquadio)

Optimism Is The End Of Ethereum (As We Know It)

Scaling The Network

One of the motivations for scaling the Ethereum network has to do with the high costs and slowness of the network. Since activity on the Ethereum blockchain has seen a surge, the difficulty target for miners has increased. The total hash power output has also increased, putting pressure to increase the cost of transactions. This has led to higher gas fees as part of the transaction costs that are averaging close to $20 per transaction in early 2021. On February 23, 2021, transaction fees reached a high of $39.49 (per transaction). Lower transaction costs can further the adoption of Ethereum, but higher fees will only discourage users.

More Confidence And Expectations

The air is tense when it comes to Ethereum. If price action seems undervalued, it is because of the uncertainties with the project. Oftentimes when the Ethereum developers make an announcement, it is not what ETH holders or analysts usually want to hear. Delays are quite common in Ethereum, with no exact date on the launch of developments. In the past, it led to more anxiety and those with less patience for the way Ethereum developers move, often pull back out of frustration.

Synopsis

One thing is for sure, with higher expectations now than ever before, the tolerance for failure appears to be less. There is more desperation from ETH holders who have been on board since the project started. What these holders want to see are things they expected from the Ethereum blockchain when they first bought their ETH or ERC-20 tokens. The space is more competitive now with the likes of Binance, Cardano, and Polkadot. It appears that if the competitors can produce a better solution, more investors will make a switch rather than wait for ETH2. There is still plenty of optimism for Ethereum though, and that keeps the momentum going. Improvements are on the way, and when it is delivered, it brings an end to the Ethereum we once knew.

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Vincent Tabora

Editor HD-PRO, DevOps Trusterras (Cybersecurity, Blockchain, Software Development, Engineering, Photography, Technology)