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- JPMorgan, an American multinational investment bank, warns Ethereum that it might not be able to compete with its competitive DeFi blockchain because of the delay in sharding.
- Tim Beiko, who leads Ethereum core developer meetings, believes that JPMorgan’s prediction is highly exaggerated. Ethereum developers and contributors argue that security has always been a priority for the blockchain.
- Ethereum, the second-largest cryptocurrency, will be transitioning to a Proof of Stake system as the “Ethereum 2.0” is in progress. At the moment, the blockchain works on the proof of work. Although, it will be collaborating with the beacon chain in the forthcoming year.
Ethereum is the second leading cryptocurrency in the crypto space, according to the coinmarketcap, which also recently broke into the $250 billion sector.
JPMorgan Chase says that the DeFi Dominance of Ethereum might end soon because of the increased competition from alternative blockchains.
On Wednesday, Nikolaos Panigirtzoglou, the team head stated in an investor note that sharding – a technique for drastically scaling up the number of transactions which can be executed on a blockchain- for Ethereum might come late.
Solana, Avalanche, Binance Smart Chain, and Terra are certain applications that are successful in rendering blockchain similar to Ethereum but with lower fees and higher speed.
JPMorgan also noted that Ethereum is running an intense race for continuing its dominance over the application space in the DeFi crypto sphere.
However, many Ethereum developers and contributors told Decrypt that statements regarding the end of Ethereum dominance are quite exaggerated.
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Tim Beiko, who is in charge of leading Ethereum core developer meetings thinks that the critique of the investment bank, JPMorgan is “a lazy / very high-level critique”
Tegan Kline, the co-founder of the team that developed the Ethereum indexing protocol, The Graph, pointed out that according to the data, Ethereum is still the most used chain and among the 26 networks that are supported by The Graph, 66.7% of the queries are on Ethereum
Since the first MakerDao on Ethereum in 2017, DeFi has blown up, DeFiLlama consists of over 250 protocols with around $1 million of ETH inside.
However, other chains are catching up soon, simultaneously neutralizing the network’s drawback- high transaction fees- by leveraging proof of stake systems that are highly scalable.
Ethereum is also looking to transition into a proof-of-stake system, the work is in progress on “Ethereum 2.0” The current chain just like Bitcoin works on proof of work, however is more likely to integrate with the beacon chain in the next year. Maybe then the Ethereum core developers solely focus on sharding.
Ethereum Developers always gave priority to security and ensured that the network is never down. Kline says, “chain security is extremely important for financial transactions.
Peter Mauric, who is the head of public affairs for Parity and also built Polka Dot, says the Ethereum Sharding map has been changed various times and it’s hard to say when it will actually be ready.
He also signaled the fact that Polkadot is growing at a greater pace than at what Ethereum did at the same stage and also quoted data from a report by Electric Capital, according to which after Ethereum, Polkadot has the second-largest pool of developers.
Concluding, Pooja Ranjan, who is the lead of Ethereum Cat Herders, a decentralized project management team, said that in her opinion, Ethereum is the reason behind the existence of DeFi and till Ethereum is present in the ecosystem, DeFi will be the strong driving force behind mainstream engagement.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
