Ether's Crash to Earth Explains Why "Tokenless Blockchains" Won't Really Happen | dinbits


As we stated. Ether hasn't even seen the price other Altcoins have much less anywhere near bitcoin. The comparison is silly. Perfect example, Ether dropped 50% and managed to struggle up to a whopping $9 over the last few days.

Problems In Paradise?

Part of the problem is that everything about Ethereum is overly complicated and it doesn't have to be. There's not an overwhelmingly large amount of documentation and there's just too many damn names for everything. Solidity, Ether, Ethereum, Geth, blah, blah, blah... and try to get any sort of client running anywhere. It crashes on impact. 

The Visual Studio plugin doesn't work easily. Mining is ridiculously painful to get setup. Even doing something simple like creating a wallet address comes with a pile of crap to do that honestly just a pain in the ass.

Once you finally do get all of this crap working then what do you do? There's another learning curve and once again the issue with the documentation, or lack thereof.

Now don't get me wrong, once you get this beast up and moving in the right direction, it can do some cool stuff, but you have to accomplish that goal first and then your applications are going to be running on a very weak network at around 2,000 GHS, which stands for gigahash per second. Just think gigabyte where the byte is a hash instead of byte and instead of storing information its a calculation. It's a bit more complex than that, but you get the idea (for those who don't know).

To put that into comparison or as close as we can get since there really is not a direct comparison a standard 2GH processor can blaze through 2 billion operations per second. 

Ethereum can blast through 2 trillion operations per second. Essentially 1000 times faster than a standard laptop. That's fast.

The worlds fastest super-computer, the Tianhe-2 (China) scorches at an astonishing 33.86 quadtrillion floating point operations per second (33.86 petaFLOPS). 

The most reliable effort in the quantum computing world is 3600 times faster than that at a warp speed of 1211.89 petaFLOPS which is 97.21% faster than the worlds fastest supercomputer. 

 Tianhe-2
The blockchain dwarfs all of them combined. It surpassed the quantum computer speed back in 2013 hitting over 1000 petaFLOPS. The blockchain now in 2016 is in another dimension entirely operating at 16443610.30 petaFLOPS. Which is the closest comparison since 1 floating point operation and a hash are two completely different things. 

The fact that the quantum computer is 97.21% faster than the supercomputer is certainly impressive, until you compare it to the blockchain which is 99.99% faster than the quantum computer.

Like I said, Ethereum is a weak network. It needs more power for mass adoption and it will get there eventually. Slow and steady is the best course of action for the network.

What Needs To Happen

First of all Ether is a true commodity and not a digital currency, but the price needs to stay pretty low for adoption to happen. Currently one guys garage houses 50% of the entire network. Mining is improving but there's not allot of interest. It's new and hasn't really shown us anything really cool yet.

Secondly and more importantly things just need to be built on it and for that to happen it needs the learning curve overcome. The dinbits.com lab is playing with a working model of an application on Ethereum but even finding the implementation on Microsoft's Azure cloud was ridiculous and everything after the fact was underwhelming. 

Honestly, we're likely 2 or 3 years away from any realm of stability. The killer app could change all of that and there are some neat ones in the works, but Ethereum isn't ready for prime time with the network yet and nobody can make that happen. 

Like I always say, you can propose a networks existence but you cannot bring it to life. That requires adoption and consensus. However, Ethereum will be fine because its just cool enough and popular enough to continue to gain traction. I believe that once its used in the real world as a sidechain to the bitcoin network, it will be a force to reckon with along side with blockstream and other efforts. I think that's a real future for Ethereum because despite how neat it may well be there are millions of dollars in efforts continue to develop on the blockchain and they have years worth of a head start on this technology. 

Sidechain technology is the future. Mark my words. There is a place for Ethereum in this space.

Let's Annoy Permissioned Ledger People 

First of all, I'm not against permissioned ledgers and I should not enjoy annoying its [supporters] as much as I do, but I do. It's one of life's little guilty pleasures. It's just that they already exist and they are not blockchains. R3CEV is a good example of operating properly whereas they state they are not building a blockchain but a permissioned ledger. Great, more power to them. 

No, they don't bother me... much. It's other companies exploiting the technology for financial gain that cross an ethical boundary when their sales people and those over them slither software into unsuspecting buyers who are duped into purchasing something because they think is something its not. I've dealt with those types of clowns for years and I have seen the damage they cause and what's more aggravating is the mess that I have to go in and clean up. 

Ethereum is one of the better funded networks in the blockchain technology space and it's struggling to gain network power yet there are people proposing tokenless networks and expect people to support it? They've stated these "bitcoinless blockchains" could match and surpass the blockchain. If a network struggles to gain support when its participants are being paid to support it then how on earth to you propose a network is going to strengthen if it relies on negative values? It's going to cost someone and if it's not the network nor the creator then its the participants.  

I'm not talking about private ledgers, those don't count. Those are internal systems. I'm talking about the folks running around claiming "blockchain without bitcoin is a thing". 

I call bullshit. 

Until there is a public network out there without any token or payment to its supporters that matches or even comes anywhere close to the blockchain's power and security thereof, I will stand by this statement: 

An equally powerful blockchain without bitcoin does not exist and likely never will. -dinbits April 2016

Sure, it is most definitely possible, but it is not probable. This is not a movie and just because you can build it doesn't mean they will come. 

Case in point ... Ethereum.




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