Ethereum’s Governance a Big Question Mark in its Unforkablity

Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.
  • In the POV Crypto podcast, Su Zhu, the CEO of Three Arrows Capital thinks that Ethereum has become unforkable.
  • With the rise of DeFi, the stress on Ethereum to act accordingly to the demands also increases. 
  • This debate has created another question for the Ethereum community

The rapid growth of DeFi is not unknown to us. When we think about DeFi, we think about the second largest cryptocurrency platform, Ethereum. From the past few months, we have seen ETH rally all the way to $440 levels (currently trading at $391.97). On the contrary, we have seen many questions on the Ethereum surface. Lately, the investors have been questioning the supply of Ethereum, which according to some people cannot be determined without using any third party application. Moreover, rising gas fees is also becoming a concern now.

With Rising Stakes in DeFi, Ethereum Becomes Unforkable

Recently, in the POV Crypto podcast, Su Zhu, the CEO of Three Arrows Capital thinks that Ethereum has become unforkable. This is because many services depend on Ethereum’s platform to function. Zhu further added that Ethereum may not be able to do the fork again like it did back in 2016 (because of the DAO attack). Consequently, the stakes of it are very high and Ethereum as a platform may or may not be ready to handle this. With the rise of DeFi, the stress on Ethereum to act accordingly to the demands also increases. 

Previously, Researchers Commented That DeFi’s Inherent Fragility Will Make ETH Unforkable

Previously, in November, 2019 two researchers Leland Lee and Haseeb Qureshi had put up a debate that the DeFi applications have made Ethereum, unforkable. They published an article, ‘Ethereum Is Now Unforkable, Thanks to DeFi’ where they explained why Ethereum won’t undergo any further forks (referring to the fork that lead to Ethereum classic and present day Ethereum) because of the permanent fragility of DApps. 

The article raised serious discussions, with a handful of people disagreeing with the article. To this the CEO of Ethereum himself said that ETH can be dubbed as a controversially unforkable rather than unforkable. This was because Ethereum forks are still possible however the legitimacy associated with them have been raised. 

Raised Questions on Ethereum’s Governance

However, this debate has created another question for the Ethereum community. The question on its governance which may be a barrier in carrying out operations. As mentioned above we have already seen users question its governance when they had raised the topic of its total supply. Despite Buterin’s drastic measures to make Ethereum robust and decentralised, the clarification regarding its supply will always be raised in the future. In addition to this, the surge in gas fees and gas usage has somehow created a flash crash risk, according to Zhu.

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