Vitalik Buterin, the founder of Ethereum, replied to a September 3, 2018, report from Techcrunch that claims that the collapse of ETH is inevitable.
No Future for ‘Gas’
According to a report from TechCrunch, the collapse of ETH is inevitable, and we should expect that ETH — the asset, not the Ethereum Network itself — will soon go to zero.
The September 3 report, written by Jeremy Rubin, a technical advisor to Stellar and co-founder of the MIT Digital Currency Initiative, claims that Ethereum as a platform will end up succeeding, despite ETH becoming worthless.
The report aims to explain the mechanism of this downfall by citing Ethereum’s original value proposition.
According to the proposition, Ethereum is a decentralized platform that runs smart contracts: applications that run precisely as programmed without any possibility of downtime, censorship, fraud or third-party interference.
These apps run on a custom built blockchain, an enormously influential shared global infrastructure that can move value around and represent the ownership of property.
Rubin also points out that there is no value proposition for ETH in the official description, and that it’s most likely due to the fact that ETH’s value seems so apparent to the Ethereum Foundation that it is hardly worth mentioning: $ETH fees (dubbed ‘Gas’) is how you pay for all this.
However, Rubin points out that as all kinds of different ERC-20 tokens are built on the Ethereum network, paying for gas in ETH would create substantial risk, third-party dependency, and artificial downwards pressure on the price of the underlying token.
Instead, he proposes paying for gas in non-ETH assets, i.e., the underlying coins. This mechanism is called “economic abstraction.” Simply put, “economic abstraction” is the idea that a blockchain protocol would allow the use of any one of a potentially unbounded number of tokens, rather than a single coin.
Later in the report, Rubin concludes that if all the applications and their transactions can run on Ethereum without ETH, there’s no reason for ETH to be valuable. The only way ETH could retain its value, he said, as if “the miners enforce some sort of racket to require users to pay in ETH.”
He also points out that miners wouldn’t be the only ones looking to get pain in non-ETH assets – risk-averse users would want to minimize their exposure to volatile assets, and token developers would see pricing in their native asset reducing the sell-pressure.
Ethereum Cofounder Disagrees
Despite massive media coverage, Rubin’s report seems to have garnered more criticism than praise. Comments on TechCrunch’sreport point out the fact that economic abstraction relies on an intermediary to accept network token and pay the gas in ETH on behalf of the user. That means that ETH is always required to run a contract or a transaction.
Vitalik Buterin, the founder of Ethereum, replied to the report in a thread on Reddit and was seemingly unimpressed with Rubin’s views.
“I have every incentive to disagree with this, but I think there are quite a few very critical economic and technical details that the article is missing,” he said, adding that “we are likely not doing full “economic abstraction.”
“One could also use intermediate solutions, where third parties create “wrapper transactions” that take the fees for operations from users that are paid in spankchain tokens, and the third parties provide the ETH to the block proposer,” he explained.
TRON (TRX) Long-Term Price Forecast- February 17
TRX/USD Long-term Trend: Ranging
Supply zone: $0.0400, $0.05000, $0.0600
Demand zone: $0.01000, $0.00800, $0.00600
Tron long-term outlook remains in a range-bond market. The bears return predicted in last week analysis remained strong within the range. The two EMAs were broken as the bears continue the downward journey.
TRXUSD dropped initially to $0.02448 and later to $0.02360 in the demand area. This was the low of the week on 14th February.
With price below the two EMAs crossover and the stochastic oscillator signal in the oversold region pointing up at 8%. It suggests a minor push to the upside before downtrend continuation within the range.
TRXUSD is in consolidation and trading between $0.02881 in the upper supply area and at $0.02142 in the lower demand area of the range. A breakout at the upper supply area or breakdown at the lower area followed by a retest may occur hence patience is required to allow this to happen before a position is taken.
Forbes releases newsletter dedicated to crypto targeting potential investors
Forbes released new premium newsletter dedicated to cryptocurrency and blockchain.
Forbes doesn’t seem to get enough crypto. The media giant gets deeper with the nascent technology with their new service, Forbes CryptoAsset & Blockchain.
The new premium-subscription digital newsletter contains in-depth coverage of blockchain, as an effort to establish Forbes as a prominent voice in the field.
According to Media Post, investor and co-author of CryptoAssets: The Innovative Investor’s Guide to Bitcoin and Beyond, Jack Tatar has been appointed as the editor.
While the contributors will be Forbes’ stable journalists that will interview notable figures in crypto space, such as Ripple’s CTO David Schwartz, cofounder and CEO of Zcash, Zooko Wilcox, and Morgan Creek Capital’s Mark Yusko.
“This newsletter is geared toward educating potential investors in blockchain and crypto, and the goal is to provide actionable and profitable advice,” said Matt Schifrin, VP and managing editor of Money & Markets at Forbes.
Despite its premium price, which is set at $595/year or $195/quarter, Forbes’ Senior VP of consumer marketing and business development, Nina La France claimed the early response as “solid”.
Speaking about future publishing plan, Schifrin reveals that Forbes will publish its first-ever Forbes Blockchain 50 list that covers most prominent firms in the crypto space in the coming months.
Is the list something worth waiting for? Stay with Chepicap to find out.
In the meantime, checkout Chepicap’s YouTube channel to find out about the current crypto market state.
Investment portal, TradingView launches premium crypto dashboard at 0.09BTC
TradingView, the investment portal just launched its very own Crypto Dashboard.
The platform known for its exhaustive and real-time information on everything related to trading and investment, TradingView just launched its crypto specific portal.
The crypto dashboard provides data from 25+ crypto exchanges, such as Binance, Bitfinex, Bithumb, BitMEX, BittrexCEX.io and Coinfloor.
The new platform aims to “equip” crypto traders with all things important to nail the trading activities, such as 25 technical indicators on a single chart, unlimited chart layouts and watchlists, 200 server-side alerts and the capability to connect 5 devices at the same time.
The “trading power” is offered in their premium plan that costs 0.09 Bitcoin/year, which the website says as a good deal as it means the lower the Bitcoin price, the higher the discount.
However, that also means that when the bull comes, it wouldn’t be that affordable to many people. Hopefully by then, TradingView would revise their pricing for the benefits of all parties.
The question is, when will the bull come? Check out Chepicap’s YouTube channel to get an idea about the current crypto market state.