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Ethereum blockchain

At the time of this weekend, a crypto investor named Zhu Su posted a lot of tweets about the state of the Ethereum blockchain.

“Yes I have abandoned Ethereum despite supporting it in the past,” he said. “Yes, Ethereum has abandoned its users despite supporting them in the past. The idea of sitting around and also watching the burn and concocting purity tests, while zero newcomers can afford the chain, is gross.”

Making sure about this allegation

There is something worth thinking about and observing before estimating this allegation. And that is that Su’s investment firm, Three Arrows Capital, is betting big on an Ethereum competitor called Avalanche. The value of $AVAX, the network’s native cryptocurrency, increased to an all-time high lately. Therefore, it’s possible Su was just riding high at the moment.

This is safe to say that he may be right, at least about Ethereum’s obstacle to entry.

We can say that, and of course, you know it too, that Web 3 is relatively confidential. It’s not enough to just buy crypto on Coinbase’s exchange. If you want to use dapps (decentralized applications), explore DeFi (decentralized finance) protocols, or get in on the NFT (non-fungible token) craze.

Ethereum fee

You are going to require to gain control of the ins and outs of unhosted wallets and token swaps. However, when you know all that, Ethereum still asks for fees. Which that is so high fee at this point in the development of the blockchain.

Minting an NFT on Ethereum will usually cost something between $60 and $250. This price is based on the time of day and the stress on the network. When more users are competing to get their transactions in the chain’s next “block,” the fee gets too high.

When every single “on-chain” transaction requires to be verified in the same way, with the same fee system, you’re always at the kindness of the market. However, on the opposite, when you’re working directly with the blockchain, you can lose your money every step of the way.

Traders at Constitution DAO

Traders who made a contribution to Constitution DAO at last week’s crowdfunding to buy an original copy of the U.S. constitution at auction, as a whole paid nearly 200 ETH in fees. This data was based on on-chain data. Which that’s around $850,000.

Who are real Ethereum users

However, in the practical real-world, common people aren’t used to paying that much for everyday transactions. that fee is not affordable to users. It is safe to say that a small number of the population, with the essential tech knowledge and money to burn, can even start to explore Ethereum.

Crypto venture capitalist Chris Dixon, who has a company named Andreessen Horowitz put a huge amount of investment in the Ethereum ecosystem responded to Su. He mentioned that the network is still in its childhood state. Therefore that foundation might make things cheaper and easier to use, which means at the expense of security, at the end.

To judge it, for now, this foundation is minimal. Polygon, known as “layer 2″ measuring product made on top of Ethereum, was designed to do one job, and that is to make fees a little cheaper. However, even “bridging” Ethereum-based tokens over to the Polygon network can be prohibitively expensive. Other networks, like Solana, are talking about that users might even just put aside Ethereum totally.

To sum up what we said, the rich users, with their ETH stashes, have the chance to get richer. They will capitalize on the crypto gold rush and becoming familiar with these systems as early adopters. But, everyone else will need to wait for a cheaper option to play along.