Controversy has raged over the feasibility of using Ethereum as a appropriate and long-term environment for decentralized finance, gaming, and NFT projects.
The have an effect on of immoderate fees, long affirmation times, and gradual updates is beginning to worry retail users, techies and huge investors.
Ethereum builders should center of attention on the first layer “L1”:
Facing the difficulties of imparting a excellent user experience, Ethereum builders have begun to move to competing blockchains to make bigger their attain and extend their market value.
Blockchain networks such as Solana, Binance Blockchain, and Avalanche saw a tremendous upward jostle in use and fee for the duration of 2021, which made them cement themselves as greater environment friendly preferences to Ethereum.
According to Nicholas Merten, creator of the “DataDash” channel on YouTube, the advantage of Ethereum being a blockchain that absolutely everyone makes use of is losing its strength over time.
In any other Twitter thread, Merten defined that the arguments in desire of Ethereum might also no longer keep up over time.
He believes that, in the end, scalability options constructed on the original blockchain (layer 2 solutions) are impractical and generate little incentive for adoption.
For example, Merten advised me that humans would rather pay $0.01 in charges to Solana than pay $0.04 for transactions on Polygon, the latter being the most inexpensive Ethereum 2nd layer solution.
For Merten, Ethereum builders ought to focus on options to make Layer 1 options (cross-chain transactions) greater efficient and much less expensive.
As smart contracts emerge as extra complex, people have to pay extra fees.
Merten believes that Ethereum wants better marketing.
In addition to the technical developments, there needs to be a group that is able to keep the community excited about Ethereum solutions.
Ethereum pledges to solve these troubles with the aid of imposing Ethereum 2.0, a new Proof of Stake primarily based blockchain that will have low costs and a very high level of scalability.
However, this answer is time consuming, and important buyers can only hope that it is not too late as soon as it is launched.
