Highlighting Ethereum's drawbacks, Zhu Su noted how its intricacies deter not only newcomers but also those well-versed in cryptocurrency.
Indeed, I've stepped away from Ethereum, even though I previously backed it.
Ethereum has seemingly turned its back on its user base, despite prior support.
The notion of passively watching as costs rise while no fresh participants can engage with the network is deeply troubling.
— Zhu Su ???? (@zhusu) November 21, 2021
Zhu, alongside Kyle Davies, who he met in school, has positioned himself as a major player in the global crypto world.
The crypto mogul has decisively distanced himself from Ethereum, citing its failure to accommodate beginners.
The Ethereum Controversy
Zhu also pointed out Ethereum's prohibitive transaction fees and scalability issues, criticisms that remain unaddressed by its leading voices.
In a surprising turn of events within hours, Zhu Su reconsidered, expressing his admiration for Ethereum and its principles.
Recently, a wallet linked to Three Arrows Capital transferred roughly $77 million worth of Ethereum to the FTX platform.
Earlier in November, Three Arrows Capital invested in Blizzard, a new initiative aiming to promote Avalanche, a blockchain rival to Ethereum.
Blockchain ecosystems like Avalanche, Solana, Cardano, and Binance Smart Chain have thrived, partly due to Ethereum's expensive transaction costs.
Criticism has been aimed at Ethereum's ecosystem, with calls for an upgrade to Ethereum 2.0 to enhance transaction speed and scalability.
ETH 1.0 can handle only 7 to 15 transactions per second, which is less efficient compared to new blockchain tokens like TRON or SOL.
While Bitcoin's Proof-of-Work model suffices for its purposes, it's outdated for expanding Ethereum's network and ensuring its security.
It's important to note the distinct functions these two digital currencies serve.
Switching from Proof-of-Work to Proof-of-Stake promises not just faster processing but also improved scalability, giving room for more projects to grow.
Once seen as a revolutionary concept, Ethereum now lags behind new projects that effectively tackle scalability, but the awaited upgrade could dramatically increase its speed by fifty times.
A key part of the new upgrade is the enhanced focus on privacy, a crucial aspect for crypto platforms as it allows for anonymous transactions, thus boosting user engagement in Ethereum.
Calls For A Clear Framework
With China's rigorous ban on Bitcoin activities, the U.S. has risen as a leader in its mining industry.
The America's regulatory stance towards digital currencies is predictable to those familiar with governmental operations, as they work to adapt Bitcoin within traditional finance structures. However, the U.S. faces the challenge of developing a coherent regulatory approach for digital currency oversight.
The IRS has classified Bitcoin as an asset akin to stocks or real estate for tax purposes.
While the SEC sees digital assets as securities, and the Treasury views them as decentralized currencies.
There's ongoing uncertainty about Ether's status as a security by the SEC, with Hester Peirce advocating for comprehensive but clear regulation without pinpointing specific assets.
Commissioner Peirce emphasizes creating a straightforward regulatory environment for cryptocurrencies.
Nicholas Say hails from Ann Arbor, Michigan, and having extensively traveled, he has immersed himself in various cultures, now settling in the Far East while contributing insightful works on technological evolution.
