During the Token2049 conference, a group of experts engaged in a lively debate surrounding the current challenges faced by the Ethereum blockchain.
At the Token2049 conference held in Dubai, professionals from the blockchain industry delved into the latest advancements and potential for growth during a panel discussion. One of the key topics of discussion was the Ethereum blockchain, widely recognized as the leading smart contract platform. The panelists highlighted Ethereum’s scalability issues, such as low transaction throughput resulting in high gas fees and network congestion. To address these issues, new blockchains are being developed to enhance scalability by increasing transaction speeds.
Despite the challenges, experts acknowledged the strong interest among developers in Ethereum, driven by its first-mover advantage and brand recognition. However, there is a growing sentiment that many layer 1 alternatives may be better suited for various use cases compared to Ethereum in its current state.
Raj Gokal, co-founder of Solana, pointed out that developers and a significant number of Ethereum users are also utilizing Solana wallets. He highlighted the rapid growth in transaction volume on Solana, surpassing Ethereum’s metrics. Similarly, Emin Gun Sirer, founder and CEO of Ava Labs, emphasized that Avalanche blockchain was not positioned as an ‘Ethereum killer.’ Despite these observations, Ethereum still offers several advantages, including the flexibility to create blockchains tailored to developers’ specifications.
In closing remarks, Keone Hon from Monad stressed that Ethereum must significantly enhance its performance to cater to hundreds of millions of users. Last November, Ethereum Co-Founder Vitalik Buterin revealed his plans to revamp the network. Buterin outlined a strategic approach to enhance Ethereum (ETH) staking and address performance issues related to addresses, a persistent challenge for the network in recent years.
As the industry continues to evolve, it is essential for Ethereum to adapt and innovate to meet the growing demands of users and developers.