Ethereum still struggles to scale up

Ethereum still struggles to scale up

According to Vitalik Buterin, Ethereum still struggles to scale up

Vitalik Buterin, Ethereum co-founder has recently come out at an interview with two largest news publication JoongAng IIbo and JoongAng Daily to discuss issues surrounding Ethereum.

Merits and flaws in ICOs

Bancor and EOS are some successful ICO projects that have raised hundreds of millions of funds in dollars. Overall, ICOs have become the popular crowdfunding method for financing Blockchain startups as more than $1.5 has been raised through it since the start of 2017.

As startups market cap their tokens using ICOs, they can publicly announce their valuation and raise huge funds in a short span of time. Structurally, ICOs use the distributed investors’ ecosystem to mobilize money in a decentralized means.

But, as ICOs operates in an Ethereum that entails peer-peer blockchain protocol that is purely decentralized, ICOs projects are centralized. The centralization problem — due allocation of large funds to a single development team — is where the flaws emanate according to Buterin.

Most scaling issues can take 2-5 years to solve

The design of ethereum is for decentralized applications to operate in its infrastructure and framework which contrasts other blockchain technologies that can manage specific tasks.

As a fact, Ethereum’s underlying scaling issues are far more complicated and difficult and could take 2-5 years to solve. To that effort, Buterin has taken the step to set up a private fund for supporting open source scaling project in Ethereum that seem non- profit.