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I already know what's going to happen: 1. They will launch. 2. They will find out that Ethereum doesn't scale. 3. They will move to an off-chain solution. O
by jondubois 6y ago
I already know what's going to happen:
1. They will launch.
2. They will find out that Ethereum doesn't scale.
3. They will move to an off-chain solution.
On the plus side, the extra demand generated by Reddit will boost Ethereum transaction fees to insane levels which is going to make the Ethereum price go up (because higher fees = more lucrative mining). Then the Ethereum/Reddit insiders who organized this elaborate corporate scam are going to cash out.
I can't believe how quickly people forgot about CryptoKitties. Surely Reddit developers know about Ethereum's limits.
It seems that we have entered into a new economic era. It's called "Let's use cryptocurrency as a way to collaboratively fool our corporate employers for personal profit".
1. Find a big corporation whose managers are naive enough to agree to participate in some hyped up and non-scalable blockchain project.
2. Convince your managers to start such a project and do it in such a way that this project is going to boost demand for cryptocurrency X.
3. Employees buy cryptocurrency X.
4. Project launches, cryptocurrency X struggles to handle the load and as a result, transaction fees skyrocket, sharply driving up the token price.
5. Employees sell their cryptocurrency X at the peak.
6. Users complain about high fees. Employer realizes that this is not going to work and abandons the project.
7. Price crashes back to what it was before. Corporate employees are pleased with their profits. Corporation has no clue that they've just been scammed by their own employees. End users of the service who had to actually pay for the transaction fees paid for most of the cost.
Companies should be launching their own blockchains, not ERC-20 tokens; that only benefits Ethereum.
- cslarson 6y agoEthereum can scale with off-chain/on-chain solutions like zk-rollups. With zk-rollups off-chain state can have the same integrity as being on-chain.
- jondubois 6y agoI don't buy into these second layer solutions. They are still limited in terms of scalability (they just push the limit back a bit) and operational complexity tends to get out of control and that makes them much more vulnerable to exploits (especially DoS attacks which attempt to prevent or delay state changes and attacks which try to roll-back state changes).
- Sargos 6y agoWith opportunistic rollups on the OVM you are using a second layer with thousands of TPS that leverages the exact same smart contract L1 code. No added complexity with acceptable performance for known use cases and it works today (It was shipped a week ago so still fairly new). https://medium.com/ethereum-optimism/ovm-deep-dive-a300d1085f52 https://medium.com/ethereum-optimism/ovm-deep-dive-a300d1085...
- CryptoPunk 6y agoZK-Roll-Up add no complexity. The settlement happens entirely on-chain, so the same from the perspective of outside parties as regular transactions. The off-chain portion is not needed for outside parties to verify the validity of transactions. And zk-Roll-Up pushes up scalability to 1,500 transactions per second, which is entirely adequate for site-wide adoption of Ethereum-based tokens by Reddit.
- bravoetch 6y agoThat's one possible outcome. It's a small experiment and doesn't seem like a fully formed product yet. It could introduce accountability if tweaked differently. Maybe they'll try things like Bitcoin with the lightning network. Maybe a competing platform has a clever implementation of a similar idea and people migrate to it.
- illumin8 6y agoAlternatively, Reddit could roll this out slowly and give Ethereum 2.0 a chance to land. By 2021/2022 when Ethereum 2.0 Phase 2 lands, scalability of Ethereum should be much greater than it is today and it should be a solved problem. Also, most of the transactions between Reddit users can be done off chain if needed. I'm not sure how they've designed their architecture, but it does make sense to aggregate multiple transactions into fewer, big transactions instead of small microtransactions for every comment.
- jondubois 6y ago>> Reddit could roll this out slowly and give Ethereum 2.0 a chance to land This is a very optimistic proposition. I think they might never get there. Based on what I read so far, I have concerns that the final solution will be too complex, brittle and vulnerable.
- hanniabu 6y agoSounds like you've been reading hit pieces by bitcoin maximalists.
- flarex 6y agoERC-20 transactions are much less compute intensive than the CryptoKitties contracts. At ~10-15 transactions/second this should be enough in the near term to support these community coins. Longer term Ethereum 2.0 will bring a much higher throughput.
- hanniabu 6y agoI'd like to see data proving transaction fees cause price to go up because the tokenomics don't work that way.