The founders of Ethereum are in trouble after admitting that its blockchain was never designed for scalability. The statements of Vitalik Buterin and Joseph Lubin were published by twitter user @notgrubles.
In the published video clip, the founders were asked about whether they had known that Ethereum was not scalable at the time of its creation. The question is answered by Lubin saying that they knew it wasn’t going to be scalable for sure. His statement receives an affirmative nod from Buterin meaning both founders had certain knowledge about the scalability issues of Ethereum at the time it was created.
ICO prospectus: "Build scalable apps on Ethereum."
Mod: "Youre saying the concept of launching something that doesn't scale then rebuilding it as something thats scalable was part of initial the plan."
Lubin: "We knew it wasn't going to be scalable for sure."
Vitalik: *nods* pic.twitter.com/MBSFkQeugj
— grubles (@notgrubles) September 20, 2019
What makes this statement controversial is that the initial ICO documents promised that scalable apps could be built on the blockchain. However, recent attempts to do so have met with failure. Slow transaction times are irking users. The promised coupled with the knowledge of scalability issues amounts to deception. Add to this, the fact that the ICO documents are no longer available for public view, and we have the perfect recipe for distrust and deception. Some users have saved digital copies of the ICO documents, and these are reminders of the fake promises.
Users are also doubtful about the real capabilities of the blockchain because of the scalability issues. The advocates of the Ethereum blockchain are now revising their opinions and investors are losing confidence in ETH. Though the technology behind Ethereum is fantastic and holds great potential, the issues with its protocol are obstacles in its adoption.
Some enthusiasts are defending the blockchain saying that scalability was always meant to be built upon in later stages and that this was the plan since the creation of the blockchain. If this is not really the case, then it actually means that founders knowingly oversold its capabilities.
Ethereum has been struggling with congestion in recent times. Its network is being utilized by more than 90 percent.
Recently there have been announcements for upgrades that assure scalability is a possibility. But people are now viewing these announcements with suspicion as well since the initial promises turned out to be fake. The scalability issues might pull the blockchain down if the upgrades don’t fix it soon enough.
The most awaited and promising one of the upgrades is Ethereum 2.0 (Serenity). It is said that it might allow millions of transactions per second, which would put it ahead of legacy industry competitors like Visa (with the capability of processing 65000 transactions per second). This advantage will be provided to the Ethereum blockchain by second-layer solutions Sharding and Plasma. According to Buterin, these will make the Ethereum blockchain powerful enough to handle most applications.
It remains to be seen whether these promises will really be fulfilled in time or the scalability issues become the downfall of the ETH blockchain.