Ethereum (ETH) has been one of the leading blockchains in the world of decentralized applications (DApps). However, there have been recent concerns about the speed at which ETH is implementing proposed upgrades, especially in the face of competition. Justin Bons, the founder of Europe’s oldest crypto fund Cyber Capital, has recently expressed his concern that ETH might be overtaken by its competitors if it does not implement the proposed updates on time. In this article, we will delve deeper into the issue and explore the potential impact on ETH.
The Need for Speed in Implementing Upgrades
Bons acknowledged that Ethereum has made some improvements to increase its block space and scalability. However, he insists that merely increasing the block space does not exempt ETH from competition. According to him, there are several scalable blockchains that have arrived, and if ETH does not buckle up, they will overtake it as the leading blockchain for developing DApps.
Elrond Network (EGLD)
According to Bons, Elrond Network has already implemented sharding, beating ETH to that race by executing all three aspects of the update, which include state, execution, and data sharding. EGLD developed much of the technology and only needs to build up its ecosystem to catch up.
NEAR has also beaten ETH to the race and developed sharding, according to Bons. He noted that NEAR has fully implemented its sharding protocol, solving the holy trinity, and is fully interoperable. NEAR is composable because it uses a single chain where it splits blocks into parts instead of deploying multiple chains.
Bons identified Tezos (XTZ) as an ETH competitor in terms of scalability. He observed XTZ enshrined roll-ups, utilizing the advantages therein without the disadvantages of Layer 2 protocols (L2s). With this implementation, XTZ eliminates the need for admin keys or permissioned elements. It has also become interoperable and composable, solving the UX problems confronting L2s.
The importance of executing sharding updates
Bons’ concern was about the speed with which ETH was implementing already proposed upgrades. In his opinion, the Ethereum network needs to move faster. He insists that ETH needs to pivot back to execution sharding because L2s cannot substitute for the actual development of the protocol. Bons cited the case of Bitcoin as a perfect example where L2s could not replace blockchain development.
Ethereum has been one of the leading blockchains in the world of DApps, but its competitors are catching up fast. Justin Bons, the founder of Europe’s oldest crypto fund Cyber Capital, has warned that ETH might be overtaken by its competitors if it does not implement the proposed updates on time. Bons’ concern is the speed at which ETH is implementing proposed upgrades. In his opinion, the Ethereum network needs to move faster and pivot back to the execution of sharding. Otherwise, the competition will overtake ETH as the leading blockchain for developing DApps.
Q1: What is sharding in blockchain technology?
A1: Sharding is a technique used to increase the processing capacity and scalability of blockchain networks by breaking up the blockchain into smaller parts called shards.
Q2: Why is Ethereum facing competition from other blockchain networks?
A2: Several blockchain networks have implemented sharding and other scalability solutions, making them viable alternatives to Ethereum for developing decentralized applications (DApps).
Q3: Can Layer 2 protocols save Ethereum from its competition?
A3: According to Justin Bons, founder of Europe’s oldest crypto fund Cyber Capital, L2s cannot save Ethereum from its competition, and the network needs to pivot back to the execution of sharding.
Q4: What are some of the blockchain networks that have implemented sharding?
A4: Elrond Network (EGLD), NEAR, and Tezos (XTZ) are some of the blockchain networks that have implemented sharding.
Q5: What is the difference between sharding and Layer 2 protocols?
A5: Sharding is a scaling technique that breaks up the blockchain into smaller parts called shards, while Layer 2 protocols are a set of off-chain solutions built on top of the blockchain to increase its scalability.
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