Spotlight Seeker Nouriel Roubini Bashes Ethereum dApps’ Ecosystem for Inactivity and Scams
A renowned Stern School professor and economist, Nouriel Roubini, has claimed that Ethereum’s decline in value was anticipated because of its insufficient decentralized apps. He contended that Ethereum was collapsing because most decentralized apps were poorly developed, along with being nothing more than pyramid schemes and casino games. He added that new decentralized exchanges lacked any real market penetration as nearly all the transactions were done on traditionally centralized exchanges. Mr. Roubini believes that all the factors listed above were some of the reasons most cryptocurrencies are losing their value.
Disproving these claims
When the web and the internet as a whole were still in the early stages of development, most websites and platforms were straightforward apps like email or data settlement solutions that could not do anything noteworthy. However, decades later, and with the improvement in supporting infrastructures, like cloud computing and better computer hardware, the software has improved drastically. The web has transformed into the foundation for efficient data sharing, and now powers nearly everything from financial services to video streaming.
Crypto Still in Infancy
Ethereum and cryptocurrencies as features of a decentralized computing platform are still in their infancy stages. For instance, Ethereum can only process roughly 10-12 transactions per second, which means that the kind of dApps services that it can create is restricted. Nevertheless, constant protocol-level improvements are being implemented at a rapid rate. Ethereum’s co-founder Vitalik Buterin has already stated that second-layer services like Plasma and Sharding have the potential of increasing the platform’s transaction capacity to over one million transactions every second.
This higher transaction rate would easily support financial networks and IoT technologies. However, that is why the current dApps with straightforward concepts, such as CryptoKitties, are dominating the space while DEX exchanges are nowhere near competing against the conventional centralized platforms. Given that decentralized computing platforms and smart contracts based on Ethereum and other public blockchain are still being developed, higher performance dApps will eventually come out.
Bright Future Ahead
One of the best performing dApps, the token powered Brave Browser, already has over three million active users. Also, the ongoing enhancement of Ethereum’s base protocol has enabled its native crypto coin, ETH, to be used as a means of storing value, together with Bitcoin. Despite Ethereum’s scalability limitations, it is expected that the platform’s processing speed will increase significantly as more people continue using dApps like Brave Browser.
Roubini’s assumption that decentralized apps and systems will stagnate and fail to be adopted are thereby baseless. Most millennials are keen on using crypto coins exclusively given the continued loss of trust in conventional financial systems, according to research. Once dApps continue getting more active users, like Brave Browser, then Roubini’s argument becomes completely meritless.