Celsius CEO thinks Ethereum could lose its market dominance if this doesn't happen

Saturday 05 December 2020, 5:17 AM AEST - 2 months ago

Ethereum 2.0 recently fired up its Beacon Chain, concluding Phase 0 of a scaling effort years in the making. Although he expressed faith in Eth2, Celsius CEO and founder Alex Mashinsky believes that the network could lose its spotlight if it doesnt scale quickly and significantly.

Ethereum needs to prove it can scale its transactions 100x without compromising on security or decentralization, Mashinsky told Cointelegraph when asked about Eth2s next hurdle after its Beacon Chain launch. If it fails to scale, Cardano and Polkadot will take over.

As of Thursday, Ethereums network hosts about 13 transactions per second, according to data from Blockchair. A 100-times increase from now would total roughly 1,300 TPS.

Ethereum has served as the top network for building decentralized applications over the past several years. In 2020, the decentralized finance, or DeFi, boom has largely taken place on Ethereum, as well. This surge in activity has led to high network traffic that has at times resulted in soaring fees — a scaling problem seen on previous occasions as well.

With Ethereum 2.0's shift to a proof-of-stake mining algorithm, scaling advancements should soon be on the horizon. Ethereum co-founder Vitalik Buterin previously said that he believes the network can scale to 100,000 transactions per second.

The networks upgrade, however, faced months of delays before achieving Phase 0 earlier this week. MyEtherWallets founder said he expects Eth2s next phases will take years to fully play out. Mashinsky did not give a specific time estimate, but he did give his vote of confidence in the network upgrade as a whole.

I am a big believer in ETH 2.0, even if it wi ...

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