“Noble chain” Ethereum really gave up users?

The rise of high-performance public chains such as Solana and Avalanche has triggered a KOL controversy between the “new school” and the “classic”.

On November 20th, Synthetix founder Kain Warwick tweeted that many people he previously respected lost their reputation for speculation. Once Ethereum L2 becomes an inevitable trend, they will all flood into Ethereum. This tweet accurately touched the nerves of Suzhu, the founder of Three Arrows Capital. He ridiculed Kain in the comment area for choosing the worst scaling solution for users (referring to Ethereum and L2).

You know, Three Arrows Capital gained a lot of wealth by investing in Ethereum projects in the early days, and it also invested in Synthetix in 2020. However, recently, the investment institution has switched to investing in new public chains and on-chain projects such as Avalanche, reducing its focus on the Ethereum ecosystem. Suzhu believes that Kain, who is still sticking to Ethereum, is dull.

On November 21st, Suzhu continued to output his opinions saying that he had given up Ethereum because Ethereum had given up users. “Newcomers can no longer use this chain.” As soon as this tweet came out, the Ethereum community could not sit still. Now, the founders of Uniswap and Balancer joined the debate one after another, accusing Suzhu of inappropriate remarks. In the end, the dispute was settled by Suzhu’s apology.

It can be seen that with the implementation of more high-performance public chains, Ethereum is becoming a “classicist” in the eyes of some people.

However, judging from the recent progress of Ethereum, Suzhu’s remarks against its “abandoning users” are not objective. At present, the total lock-up value of the Ethereum L2 network has exceeded US$6 billion, a record high. Among them, Arbitrum reduces the transaction gas fee to about $5 based on the performance improvement, and the other side chain dYdX does not need to consume the gas fee.

The L2 solution is making up for the shortcomings of Ethereum’s inefficiency and high cost. At the same time, the development of ETH 2.0 is also underway. Ethereum does not intend to easily give up the crown of the king of public chains.

“ETH abandoning users” point of view provokes intense debate among KOLs in the crypto circle

The rise of high-performance public chains such as Solana and Avalanche has set off a new round of public chain wars. Ethereum, which has been on the throne of public chains for many years, has once again become the focus of discussion due to the impact of challengers. Last weekend, there was a controversy involving many opinion leaders in the crypto circle on Twitter.

On November 20th, on Twitter, Kain Warwick, the founder of Synthetix, the leading synthetic asset protocol on the Ethereum chain, pointedly stated that in this cycle, many people he respected in the early stages of the cycle were to sacrifice reputation in order to maximize profits. Speculation at the price. But once the Ethereum Layer 2 inevitably comes, they will all flood into the Ethereum ecosystem.

Just as the onlookers guessed who Kain was taunting, Suzhu, the founder of Three Arrows Capital, jumped out. He did not take into account his previous investment in Synthetix, and directly posted the K line of the continuous decline of SNX/BTC under this tweet, and said that Kain chose the worst expansion solution for users to protect his ETH position. Suzhu sneered, “Do you still have the guts to insult someone who is not as slow as you?”

"Noble chain" Ethereum really gave up users?

Synthetix founder’s tweet sparks controversy

Suzhu obviously thinks Kain’s tweet offends him. As an investment institution, Three Arrows Capital has fully caught up with this wave of new public chain explosions. It not only invested in the new public chain Avalanche in the early stage, but also invested in Solana on-chain projects including the chain game Nyan Heroes. He continued to comment that there are already many projects migrated from Ethereum on Avalanche, “I urge you to observe carefully and rethink.”

Hearing this, Kain also refused to give in, “You are too excited about this. Maybe you should hire an excellent therapist.”

The two big Vs evoked no mercy. Suzhu simply pointed the finger at Ethereum. “Although I supported Ethereum in the past, I have given up on it. Although Ethereum used to support users, it has given up users. Newcomers can no longer use this chain.” After pointing out the high shortcomings of Ethereum Gas, he added that everyone on Ethereum is already too rich to remember their original intentions. “Maybe a bear market is needed to remind them, or we must build a blockchain that truly supports users elsewhere.”

As soon as these words came out, the dispute between the two suddenly rose to a group debate. Soon, Uniswap founder Hayden Adams and Balancer co-founder Ric Burton arrived on the battlefield. Adams said that Suzhu’s statement was very bad and insulted everyone who worked hard for ETH 2.0 and Layer2; Burton also started to counter suzhu, “It’s just because you didn’t enter the seed round of Arbitrum, Optimism and other Layer 2 projects. You have nothing. create.”

After suzhu angered a group of big guys in the Ethereum community, he seemed to notice that his speech was improper. He sent another tweet saying that “giving up” was a wrong word. He was too excited at the time. I’m sorry, but he boasted again. After boasting the progress of Layer 2, the controversy has only subsided.

From Suzhu’s point of view, he, who represents capital, is treating Ethereum as the past tense and classical school of the public chain world. During the intense debate, Nansen, an on-chain data analysis tool, showed that the address of Three Arrows Capital transferred 17,895 ETH to the FTX exchange, valued at nearly 80 million U.S. dollars. At the same time, some users discovered that Synthetix and Ethereum have been removed from the investment portfolio posted on the investment institution’s official website.

New chains are coming, Ethereum is accumulating Layer 2 and 2.0

Suzhu’s remarks caused great controversy, but it is undeniable that the excessively expensive gas fee of Ethereum has indeed “persuaded” many retail players, and it has been jokingly called the “noble chain”.

At present, when the Ethereum network is slightly congested, a gas fee of about US$10 is required to make an ordinary transfer. If a transaction is to be made in Uniswap, the gas fee is as high as US$100. In contrast, when performing general transactions on public chains such as Solana, the Gas fee is only less than $1.

In a situation where the new public chain has better performance and lower costs, the original Ethereum protocols including Curve, AAVE, and SushiSwap have gradually expanded their versions on other chains, while protocols such as Maker, Uniswap, Compound, and Synthetix still stick to it. In the Ethereum ecosystem.

The choices of the protocols have their own considerations, but it is obviously biased to think that “Ethereum gives up users” based on the expensive Ethereum Gas.

According to the data of Ouke Cloud Chain, Ethereum is still the public chain with the largest user base and the most precipitation value. Its number of currency holding addresses exceeds 69 million, and the total lock-up value (TVL) on the chain exceeds US$169 billion, occupying the entire chain. The blockchain ecology has a share of more than 65%.

While it is difficult to improve the scalability of the Layer1 network, the Ethereum Layer2 network has achieved large-scale landing this year. According to data from L2BEAT, the current TVL of all Layer 2 networks of Ethereum has exceeded USD 6 billion, a record high. Among them, TVL of Arbitrum is US$2.59 billion, dYdX is US$995 million, and Boba is US$926 million. Layer 2 solutions such as Optimism, ZKSwap, and ImmutableX are also continuing to expand.

"Noble chain" Ethereum really gave up users?

The total lock-up value of the Ethereum L2 network exceeds US$6 billion

According to actual measurement, a transaction fee in Arbitrum can be reduced to about $5, and a derivative transaction in dYdx does not cost Gas. This shows that the Layer 2 scaling solution does greatly improve the performance of Ethereum while reducing user costs. .

Recently, the founder of Ethereum, Vitalik, also encouraged the Arbitrum related communities. “I know many people are frustrated by the statement that “the Ethereum team does not care about users”, but you have achieved great results as the backbone of solving the fee problem. progress”.

When the new public chains are coming, the development of Ethereum 2.0 is also proceeding as planned. According to data from Ouke Cloud Chain, as of November 22, the total ETH2.0 pledge amount has exceeded 8.36 million ETH, accounting for 7.12% of the total ETH supply, and the total validators of the ETH2.0 beacon chain have exceeded 260,000.

On November 23, the Ethereum Foundation announced that the 2.0 testnet Kintsugi is expected to be launched in the first week of December. After Kintsugi is launched, the relevant EIP and specifications will enter the final call state, and the public proof of work and testnet will be in the new The merger transition takes place in one year.

“The team is doing things” still applies to Ethereum. With the development of the Layer 2 network and the landing of ETH 2.0 in the future, the founder of Synthetix said that “they will all flood into the Ethereum ecosystem” is not impossible.

When this controversy occurred, “which public chain is better” was also widely discussed in the crypto circle. In the view of a16z partner Chris Dixon, the more “ethereum killers”, the better. People’s demand for blockchain will always exceed supply, which will bring more public chain solutions, and on-chain applications will follow. Evolve, and then promote the birth of a more ideal blockchain, forming a mutually reinforcing positive cycle. “Various experiments are very important. Our greater goal is to mainstream the blockchain and Web3.”

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/noble-chain-ethereum-really-gave-up-users/
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