Many people are anxiously observing the launch of Ethereum 2.0 because the media has touted it as a “game-changer” for the cryptocurrency industry. Yet the masses seem to forget there are viable alternatives in existence already.
Is Ethereum 2.0 taking too long?
In recent days, there has been ample excitement surrounding Ethereum 2.0. The beacon chain deposit contract successfully achieved enough deposits to launch Eth2 Phase 0 in December 2020. That is only the first stage, however, and full functionality isn’t expected to go live within the next two years — or perhaps even longer. Therefore, it will take a while before anyone can see if Ethereum 2.0 can ever do what it claims.
The launch of Ethereum 2.0 is needed in order to save the network from itself. Ongoing network congestion and mounting gas fees have cramped the network far too often. Ever since the DeFi industry started gaining more traction, these problems have only become more apparent. Finding a permanent solution is mandatory, but it’s not necessarily easy or straightforward.
One pro-Ethereum 2.0 argument is that there are layer-two scaling solutions to alleviate congestion. Innovative ideas including Loopring exemplify that things can be done differently. However, these layers are not used in a broad sense and may never be. Such integration may offer short-term relief but is far from a long-term solution.
Ethereum has hit its limits
From a design point of view, the current iteration of Ethereum — or Eth1 — is far too constricted because it’s not designed to scale in a significant manner. It’s a bit unusual, as the project has always been marketed as a haven for developers looking to experiment with blockchain technology. More applications, projects and services only result in more congestion,…