Adamant Capital Founder, Tuur Demeester Questions ‘Science Experiment’ Ethereum

Tuur Demeester, who is the founder of Adamant Capital, declares that Ethereum (ETH) is at best a $13 billion science experiment. The Austrian crypto expert and economist is highly renowned for his persistent questioning of the viability of Ethereum (ETH). This time he has indicated the reason why he remains highly pessimistic about the Ethereum Blockchain. The majority of his points against Ethereum are provided in a 50-pointer thread where he referred to the ETH team’s promises of ensuring better scalability in the sector.

Ethereum (ETH) Price Today – ETH / USD

NamePrice24H %
ethereum
Ethereum(ETH)
$4,451.694.32%

Demeester: Ethereum Can’t Scale

Demeester cited a peer review report of the Ethereum Casper/sharding whitepaper, which is a solution designed to scale the mainnet back in 2014. The review, as per how the Adamant Capital founder put it, found the Casper protocol was a theoretical solution that can neither solve the network’s scalability issues or provide the Ethereum blockchain meaningful security.

Demeester also cited another example, where he reminded his followers that Ethereum (ETH) developers were exploring ways to implement a second-layer solution that will be similar to Bitcoin’s (BTC) Lightning Network solution. However, the economist doubted whether or not the main-chain issued ERC20 tokens will be compatible with the Ethereum (ETH) second layer.

The Proof-of-Stake Scalability Solution

It is now exactly one year ago since Vitalik Buterin the founder of the Ethereum Blockchain proposed a new scalability solution, although it was related to implementing a total infrastructural overhaul of the endeavor. Demeester recommended that Ethereum (ETH) should switch from the Proof-of-Work protocol to the Proof-of-Stake consensus.

In the Proof-of-Work project, each miner must compete with other miners on the network to deal with mathematical problems by delivering its computing power. The higher the computing power, the better the chances that the miner will solve the issue and receive the block reward. As for the Proof-of-Stake protocol, the right mine is allocated to miners with the most coins. In return, a rich miner can take away transaction fees instead of the block reward.

Demeester also questioned why the Proof-of-Stake protocol, which is not a new concept, was adopted at a later stage of Ethereum’s (ETH) development. He questioned why a Proof-of-Work consensus was created in the first place if the network was going to upgrade to the Proof-of-Stake project. According to him, such an upgrade will alter the economy of the network. In his view, the Proof-of-Work protocol was actually one of the biggest innovations that ensured the expansion of Bitcoin, after the Proof-of-Stake was deemed impractical due to the issue of censorship vulnerability.

Demeester: Ethereum (ETH) is Extremely Overbought

One of Demeester’s criticism of Ethereum (ETH) is that it is an extremely overbought asset class due to the type of hype it got since its launch. According to the Adamant Capital founder, Buterin promised that Ethereum (ETH) is created on an unproven future of the proof of stake system on social consensus-based hard forks as well as perpetual income to Ether token holders.

Demeester highlighted the efforts Ethereum (ETH) has initiated to brand itself as a JavaScript-on-the-blockchain, citing the smart contract tech that saw many mentions in nearly every blockchain project over the past four years. Finally, the economist referenced reports mentioning Ethereum (ETH) as the world’s most efficient supercomputer, and the ideal censorship resistant solution.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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