Do You Trust The Ethereum Cryptocurrency?

A few days ago I commented on a post by @blockchainking onΒ  Publish0x where in one part I expressed: "... ETH was one of my favorite cryptocurrencies until it went from POW to POS...". By saying this I know that many haters are going to attack me, I have the unpleasant experience of another article I wrote on the subject some time ago: Proof of Stake: Ethereum's Big Mistake That Threatens Its Future. Therefore, I apologize in advance if I in any way offend the true defenders and believers of this cryptocurrency, believe me when I tell you with all honesty that it is not my intention to provoke you.

πŸ“Œ PoW: Consensus mechanism based on proof of work.

πŸ“Œ PoS: Consensus mechanism based on proof of stake.

I have always recognized Ethereum as a necessary cryptocurrency in the crypto ecosystem for many reasons:

βœ” It is much more than a simple cryptocurrency, it is a platform that allows you to create and run decentralized applications (dApps) based on blockchain technology. These applications offer us financial, social, artistic, educational and many more services, without depending on intermediaries or central authorities.

βœ” Introduced the concept of smart contracts, programmed agreements that are automatically fulfilled when certain conditions are met. Smart contracts have made it easier for us to trade, collaborate, organize, and innovate on the Ethereum network, without the risk of fraud, censorship, or manipulation.

βœ” It is one of the most important and demanded cryptocurrencies on the market, with a high capitalization.

βœ” Can be used to participate in network governance and security.

βœ” It is constantly evolving and improving, seeking to solve the challenges of scalability, speed and transaction costs.

βœ” The current consensus mechanism is much more ecological.

βœ” It is an open and participatory network, where anyone can create, use or contribute to the applications and projects that are developed there.

βœ” In addition, it has a large community of developers, users, investors and enthusiasts who support and promote the growth and innovation of the platform.

Logically, I had many things left to say in favor of Ethereum, but I think I made a fairly concise summary. However, as I mentioned previously, it stopped being one of the cryptocurrencies I most trusted for LONG-TERM INVESTMENT when I went from POW to POS ("The Merge" update). What are those reasons? I'll explain them to you:

❌ Less security: The security of a blockchain network depends on the decentralization of its network of nodes. In the case of POW, decentralization is achieved because anyone with a powerful computer can become a miner. In the case of POS, decentralization is achieved because only validators with a large amount of ETH can participate in the consensus. This means that the POS network is less resistant to 51% attacks, in which an attacker has to control more than half of the network's hash power.

❌ Greater centrality: In a POS network, validators with more ETH have more voting power over the future of the network. This can lead to greater centrality, as a small number of powerful actors can control the network. Don't you see the similarity with the current financial system?

❌ Less scalability: Scalability is the ability of a network to support a greater number of transactions. The POS network is less scalable than the POW network, as the number of transactions it can process is limited by the amount of ETH the validators have.

❌ Less innovation: The POW network has been the basis for a lot of innovation in the blockchain space. The POS network is a new protocol that is still in development, and it is unclear if it will be as innovative as the POW network.

These are just some of the arguments that I consider relevant against Ethereum's migration from POW to POS. Please note that these are just my opinions, as far as I know there is no scientific consensus on whether the migration was a mistake or not.

Although I consider the arguments against migration convincing, taking into account that security, centrality, scalability and innovation are all important factors for the success of a blockchain network. In my view, Ethereum's migration from POW to POS has compromised some of these factors, and it is possible that this will have a negative impact on the future of the network.

However, it is also important to note that the migration from Ethereum to POS is still a developing project. It is very likely that Ethereum developers can find ways to mitigate the risks associated with the new protocol. Only time will tell if the migration was a mistake or not. What do you think?

NOTE: A curiosity that has nothing to do with the article, Ethereum, seen from right to left in Spanish (MUEREHTE), can be read as: DIE, DEAD or DEATH.


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