During the harsh crypto winter, Ethereum was one of the cryptocurrencies that got hit the worst since for a couple of months it was trading at low points and it was even overtaken by XRP. Many in the crypto community believed that to be the end of Ethereum. However, ETH managed to climb back to the second spot and in today’s ethereum news we read why Joseph Lubin reassured the investors that Ethereum is not going to fail.
Joseph Lubin, as ethereum’s co-founder, was invited as a speaker at the popular SXSW conference and he took the time to explain ETH’s nature and said:
“Ethereum is not going away. It’s not going to fail. It will remain very significant.”
According to Lubin, all of the high tech entrepreneurs are now in the process of building new applications by using the ethereum blockchain and don’t really worry about the price fluctuations. He continued:
“Since the start of the ecosystem and since 2009, we’ve seen many incredible rises in the price of these tokens followed by very significant corrections. So the most significant correction took us back one year, which was 5,000-times more valuable than when ETH was initially launched. In that context, it’s not so horrifying. There is way more activity in our ecosystem now than a year or 18 months ago.’’
Lubin also tapped another issue which is the scaling aspect of Ethereum, the one issue everyone cares the most. The scaling problem is the biggest problem for ethereum since it can currently only handle about 14-17 TPS which is only a small fraction when compared to the global transactions on the internet. He explained:
“Ethereum 2.0 is coming…we have eight teams building it,” said Lubin, adding that they’re in “phase 0 of four phases.” This base layer upon which we continue to build Layer 2 scalability solutions is going to expand by at least 1,000-fold over the next 18-24 months from now. It will keep expanding after that.”
Despite the harsh position that ethereum had on the market after losing 92% of its value from its peak in January 2018, it seems like the user base of the blockchain protocol increased and this also led to the improvement of the eth infrastructure.