2023-10-20 21:11:17
© Reuters Demand for Ethereum will migrate to other networks, says founder of Europe’s first crypto fund
Blockmarket – Justin Bons, who is the founder of Cyber Capital, the first cryptocurrency fund in Europe, has made several criticisms of and , the two largest cryptoassets by market value.
According to Bons, both networks have abandoned the idea of on-chain scaling. Because of this factor, these networks will tend to have increasingly higher transaction fees over time, while the majority of users will depend on second layers with inferior UX and security, or will depend on custodians.
As highlighted in a recent publication, Ethereum could lose market space if it does not meet the great demand for layer 1 of the network. According to the executive, this could benefit competing blockchains, such as .
Bons stated:
is dropping the ball by failing to meet L1 demandUsage will inevitably move to competitors which can scale to meet demandWhether it is SOL’s parallelization, XTZ’s enshrined rollups, or full sharding like in , NEAR & TONETH will definitely lose if it does not scale!
— Justin Bons (@Justin_Bons) October 20, 2023
“ETH is missing the ball by not meeting L1 demand. Usage will inevitably migrate to competitors who can scale to meet demand. Be it SOL parallelization, XTZ rollups or complete sharding like in EGLD, NEAR & TON. ETH will definitely lose if it doesn’t grow!”
As highlighted, Ethereum’s main developers had an on-chain scaling plan based on sharding blockchain data. However, the development roadmap deviated over time:
“I fully believed in ETH’s promise of sharding. Even pointing out my old mining farm to it in the first week of launch in 2015. As I was part of the BTC community that advocated L1 scaling. So when ETH abandoned L1 scaling by 2022, it betrayed to me that fundamental founding promise.”
In fact, Vitalik Buterin himself, creator of Ethereum, has stated in the past that it is absurd for a transaction with internet money to cost more than 5 cents. However, Ethereum fees recurrently exceed more than 5 dollars.
The executive has already stated that Bitcoin and Ethereum have abandoned their original vision:
“Bitcoin changed my life when I discovered it in 2013. A beacon for freedom, manifesting key ideas from libertarianism to Austrian economics. A marriage made in heaven; I found my community. This made it much more difficult to go against BTC when it abandoned these founding principles.”
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