Ethereum has been on the hot seat lately. The major backlash is a result of the sky-high transaction fees that users are made to pay. On the flip side, miners are cashing out in millions. With DeFi and NFTs exploding, Ethereum competitors are on the rise.
Binance’s smart chain platform recently gained a fifth of Ethereum users, creating room for an industry debate on whether the CEO of Binance has been suppressing DeFi tokens in its exchange.
According to his assertion, Ethereum imitates many other social media platforms that have recorded a short-lived success. He references MySpace’s inability to keep up with user demands, saying that Ethereum, despite being so successful, could lose its credibility to other promising competitors. Sentiments are similar to other Ethereum critics who have continued to hammer on the congested structure of the network.
“Ethereum created the smart contract market, which led to ICOs, DeFi, NFTs, etc. Demand is growing exponentially, performance of ETH isn’t. ETH 2.0 is still years away. Rollups aren’t user friendly (jury is still out). This is the ETH killer.” He explained.
New Ethereum projects may also suffer from the potential limitations of the Ethereum network. High fees in particular have been a topic of discussion for the longest time. Per reports, Ethereum miners have realized millions in monthly revenue, thanks to the spike in fee charges.
However, analysts speculate that miner revenue is certain to reduce, with the implementation of the new upgrade. According to Ethereum developers, the design document used to send information to the Ethereum community known as Ethereum Improvement Proposal (EIP), is expected to hit the network in July. This will lead to a major reduction in miners’ revenue; an estimated 20% to 35% drop.
CZ also clarified that he is not directly involved with Binance Smart Chain, although the platform was designed to serve as a sufficient substitute to Ethereum.
His tweet is quoted :
“BSC is not a ETH killer. It is built with learnings from ETH and tries to help solve one key issue, high fees. It wasn’t designed that way, or at least, it wasn’t presented to me as such. (I was/am not involved in its design.) I just shill BSC and BNB.”