Ethereum Network Problems Aren’t The Technology’s Death, Say Industryites

Innovation, Investing, News | August 14, 2018 By:

Ethereum is experiencing some significant problems, and those are reflected in its dramatic price plunge this week. Scaling issues, security issues and the problem of solving the smart contract that is clogging the network have all made their mark, driving pessimism even as the vast ethereum developer community is working hard to solve the problems.

Some comments from observers:

Josh Fraser, co-founder of Origin, an open-source blockchain platform for creating peer-to-peer marketplaces like decentralized versions of Airbnb, Uber and Craigslist:

“We’ve been through this cycle before and we’ll go through it again. The hype and exuberance of last year has passed, but meanwhile the real work continues. Ethereum developer tools like Truffle are seeing a record number of downloads, companies like Origin are recruiting some of the best engineers in the world and a remarkable amount of innovation is still happening every day in the Ethereum community. During the dotcom bubble, companies like Amazon and Google were able to thrive, while many others around them crashed and burned. I think we’ll likely see a similar reckoning with blockchain projects. We’ll find out which teams and ideas are here for the long term.”

Jimmy Zhong, co-founder and CEO of enterprise-grade blockchain infrastructure IOST:

“Some of this price decline may be because the platform that Ethereum has been promising since its launch is still so far away. Bogged down by its scaling issues and clearly struggling to keep up with platforms that aren’t hampered by legacy technology, there are cracks showing in Ethereum’s armor. This is one of the reasons that decoupling from Ethereum is such a big deal and why companies are starting to show interest in developing their own blockchains.”

Andy Bromberg, co-founder and president of CoinList, a platform for the best digital-asset companies to manage their token sales and where investors find deals in the space:

“Ethereum’s price volatility is a result of market pressures, not anything more fundamental around the technology — which is what the highest-quality projects care about. The best token issuers are heads down focusing on building their products and businesses, and not looking up at the prices.”