Ethereum’s highly anticipated Merge is approaching. While this upgrade excites some, it causes criticism of others. A ‘mad scientist’ from Skerry Technologies went after the leading altcoin Ethereum. The scientist criticizes the cryptocurrency from multiple perspectives. He even accuses Ethereum of being a ‘Ponzi scheme’.
“The leading altcoin Ethereum is a Ponzi scheme!”
Not many people know the self-proclaimed ‘mad scientist’ who works at Skerry Technologies. It looks like Weaver has a strong jaw to chew on the Ethereum Blockchain. According to him, the network is unreliable. At least that’s what he came up with in a recent interview with Bloomberg TV. He had a few points he wanted to say about Ethereum. Bloomberg shared this on his Twitter account as follows:
Skerry Technologies Chief Mad Scientist Nicholas Weaver says that Ethereum is a “spontaneous Ponzi scheme.” The highly anticipated Ethereum Merge discusses the Ethereum global computer and its potential impact on the entire crypto ecosystem.
Ethereum is a “self-assembled Ponzi scheme,” says Skerry Technologies Chief Mad Scientist Nicholas Weaver.
He discusses the highly-anticipated Ethereum Merge, the Ethereum global computer and its potential impact on the entire crypto ecosystem https://t.co/8ZVPxpX4Tt pic.twitter.com/knv9IB9NdB
— Bloomberg TV (@BloombergTV) July 26, 2022
Proof of Stake delayed too long
Ethereum developers from Kriptokoin.com have been promising to upgrade the network to a Proof-of-Stake (PoS) system for some time now. This will technically switch the network from the current Proof of Work (PoW) model to the futuristic PoS model. This upgrade became popular as ‘Ethereum Merge’. PoS is touted as a more efficient model due to less energy use in mining.
From Weaver’s point of view, the fact that the delivery of the Merge system has been delayed multiple times makes Ethereum a bad system. The ‘mad scientist’ continues to call Ethereum a ‘spontaneous Ponzi scheme’ in terms of its internal economy. He notes that introducing PoS in this context does not solve this problem.
Next, Weaver has something else to say about the throughput of the network. According to him, the Ethereum Global Computer is too slow. About 1/5,000th faster than a small Raspberry Pi compute module. Again, he argues that the transition from PoW to PoS will not improve the system in this respect.
“He who has the most money makes the rules”
PoS models favor those with a higher share. It also gives them more leverage in network management during voting events. Therefore, according to Weaver, Ethereum’s transition from PoW to PoS is a bad idea. Because it consolidates power among several high-stakes assets. Moreover, it leaves the rest without significant voting power.
At press time, Ethereum was trading at $1,517, up 9.85% on a daily basis, according to data from CoinMarketCap. The leading altcoin has regained the losses it lost yesterday. However, ETH is about 70% off its all-time high of $4.9k.
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