Dr. Craig Wright Says Ethereum’s ERC20 Tokens Are Doomed to Fail
ERC20 Tokens Are ‘Doomed to Fail' Claims Dr. Craig Wright
In a recent statement, Dr. Craig Wright stated that he did not think anyone would touch ERC20 tokens because of regulatory fears. Dr. Wright, best known for supporting Bitcoin Cash, said that the idea of ERC20 tokens was a dead end. He added that these digital assets had no future.
He shared his opinion in a recent tweet. In the tweet, he said that ERC20 is a dead end and exchange would start to ban the coins soon. However, he was quick to state that Bitcoin would live on in the same tweet. According to him, the law would catch up with the coins soon and they would all be dead soon.
This statement was made as part of his support for developments in Bitcoin Cash. The Bitcoin Cash project is currently working on the Wormhole protocol, which will enable it to support smart contracts.
Smart Contract and Bitcoin Cash
In theory, any blockchain network can support smart contracts and even tokens. Even Bitcoin can do this, thanks to its Omni layer, which has been made famous by the Tether (USDT) tokens. However, the Ethereum based tokens have become the industry standard because of how easy they are to generate. Besides that, since owning ETH is easy, moving the token becomes easy.
Wright’s Feud with Vitalik
Dr. Wright believes that Ethereum tokens could soon be replaced. This is part of his ongoing feud with Vitalik Buterin, the Ethereum co-founder. In the past, Vitalik has called Dr. Wright a fraud.
Vitalik tweeted about Wright and told him to stop pretending to be Satoshi Nakamoto. While there is no real proof about the identity of Nakamoto, Craig has been one of the top contenders for this title. Vitalik finally decided to weigh in on the issue and called Craig a fraud. Craig has made the official claim to being the founder of Bitcoin. However, his claim has been debunked by many experts in the crypto community.
More about Tokens
For most projects, tokens are a way to quickly build a new reward model for transactions. Some projects use the ERC20 standard at the initial stage but switch to another standard later in the project.
However, some projects remain on the Ethereum network such as Basic Attention and OmiseGo. Others such as KIN will maintain the ERC20 tokens but offer a way to swap for other digital assets, which is used in the Kik Chat app. Thus far, no app has been able to discover a way to use ERC20 tokens that require ETH holding to pay for gas each time the tokens are moved.
The main issue with the ERC20 tokens is that authorities view them as securities. The technology does not define the tokens as security. However, the smart contract offers dividend-like rewards.
In recent times, Coinbase announced that it might launch several ERC20 assets such as Basic Attention (BAT). The exchange added support for the ERC20 standard without making a commitment to list those assets.