Is Tether causing the Ethereum blockchain some concern?
Ethereum co-founder Vitalik Buterin, has noted that the processing cost of transactions completed in the token Ether on the main blockchain may get too expensive for some users.
The network utilization has now spiked to the 90% level according to etherscan.io.
This is not the first time something like this has happened like two years ago Crypto Kitties and lots of scam coin offerings clogged up the network.
Now a new coin (Tether) is taking over and it has been said that Tether paid computers which process transactions on Ethereum’s digital ledger around USD 260,000 in fees, according to data researcher Ethgasstation.info.
“The Ethereum blockchain has been ‘almost full for years,”’ Buterin said in an email to Bloomberg. “I think it’s still good to develop apps, but anything substantial should be developed with scalability techniques in mind, so that it can survive higher transaction fees that would come with further growing demand for Ethereum. In the longer term, Ethereum 2.0’s sharding will of course fix these issues.”
The market cap of Tether has now surpassed the USD 4 billion mark and at least 40% of all trades are made on the Ethereum block. It has also now been said that some developers are waiting for Ethereum to tweak its blockchain to allow more capacity. Ethereum is still working on its new Ethereum 2.0 with some users sceptical that it could even do the job.
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
