{"id":291,"date":"2021-06-16T10:27:29","date_gmt":"2021-06-16T10:27:29","guid":{"rendered":"https:\/\/digitalcoinprice.com\/blog\/?p=291"},"modified":"2023-03-29T11:45:12","modified_gmt":"2023-03-29T11:45:12","slug":"5-myths-about-eth-set-straight","status":"publish","type":"post","link":"https:\/\/digitalcoinprice.com\/blog\/5-myths-about-eth-set-straight","title":{"rendered":"5 Myths About ETH Set Straight"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #223c50;color:#223c50\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #223c50;color:#223c50\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/digitalcoinprice.com\/blog\/5-myths-about-eth-set-straight\/#What_is_ETH\" title=\"What is ETH?\u00a0\">What is ETH?\u00a0<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/digitalcoinprice.com\/blog\/5-myths-about-eth-set-straight\/#ETC\" title=\"ETC\">ETC<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/digitalcoinprice.com\/blog\/5-myths-about-eth-set-straight\/#_ETH_Myths_Everyone_Should_Know\" title=\"\u00a0ETH Myths Everyone Should Know\">\u00a0ETH Myths Everyone Should Know<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/digitalcoinprice.com\/blog\/5-myths-about-eth-set-straight\/#Ethereum_is_less_centralized_than_Bitcoin\" title=\"Ethereum is less centralized than Bitcoin\">Ethereum is less centralized than Bitcoin<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/digitalcoinprice.com\/blog\/5-myths-about-eth-set-straight\/#Are_Ethereum_transactions_really_expensive\" title=\"Are Ethereum transactions really expensive?\">Are Ethereum transactions really expensive?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/digitalcoinprice.com\/blog\/5-myths-about-eth-set-straight\/#Ethereums_scalability_potential_is_limited\" title=\"Ethereum\u2019s scalability potential is limited\">Ethereum\u2019s scalability potential is limited<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/digitalcoinprice.com\/blog\/5-myths-about-eth-set-straight\/#Ethereum_20_is_nothing_more_than_a_speed_upgrade\" title=\"Ethereum 2.0 is nothing more than a speed upgrade\">Ethereum 2.0 is nothing more than a speed upgrade<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/digitalcoinprice.com\/blog\/5-myths-about-eth-set-straight\/#Implementation_of_Ethereum_20_will_happen_at_once\" title=\"Implementation of Ethereum 2.0 will happen at once\">Implementation of Ethereum 2.0 will happen at once<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/digitalcoinprice.com\/blog\/5-myths-about-eth-set-straight\/#Its_impossible_to_manipulate_Ethereums_network_config\" title=\"It\u2019s impossible to manipulate Ethereum\u2019s network config\">It\u2019s impossible to manipulate Ethereum\u2019s network config<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/digitalcoinprice.com\/blog\/5-myths-about-eth-set-straight\/#ETH_Myths_Busted\" title=\"ETH Myths Busted\">ETH Myths Busted<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">\u201cIf crypto succeeds, it\u2019s not because it empowers better people, it\u2019s because it empowers better institutions,\u201d<\/span> <span style=\"font-weight: 400;\">claims Vitalik Buterin<\/span><span style=\"font-weight: 400;\">, the creator of Ethereum.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The crypto craze is taking over. Institutions and individuals alike are investing in the digital asset class hoping to squeeze out a triple or even quadruple-digit return. As of today, Ethereum is the only real competition for Bitcoin. It\u2019s just as easy to transact as Bitcoin and one can easily <\/span><span style=\"font-weight: 400;\">buy ETH on MoonPay here<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, a lot of people don\u2019t know that Ethereum and Bitcoin have completely different aims. Bitcoin\u2019s creators were focused on creating a currency that could replace fiat currencies. Ethereum, on the other hand, was built to facilitate the creation of smart contracts and applications.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is just one of the many things that people don\u2019t know about Ethereum. This article is aimed at busting some myths about Ethereum that most believe to be facts. Before that, let\u2019s quickly look at what ETH is.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_ETH\"><\/span><strong>What is ETH?\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Ethereum is the world\u2019s <\/span><span style=\"font-weight: 400;\">second-largest cryptocurrency by market capitalization<\/span><span style=\"font-weight: 400;\">, second only to Bitcoin. It went live on Jul 30, 2015, and hasn\u2019t looked back since. It is a decentralized platform that enables users to exercise control over money and gives them the option to build apps that are accessible from across the globe.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">ETH (Ether) is used for payment on the Ethereum blockchain. When a person refers to buying or selling Ethereum, they\u2019re actually referring to Ether and not Ethereum.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ethereum also has a long-lost cousin, Ethereum Classic. In 2016, a major loophole in The DAO project\u2019s smart contract software resulted in $50 million worth of Ether being stolen.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After this event, Ethereum split into two separate blockchains. The original blockchain continued using the same name, Ethereum Classic (ETC), and the newer version was named Ethereum (ETH). However, ETH has managed to do quite well for itself, while ETC, does not so much.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"ETC\"><\/span><strong><i>ETC<\/i><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">All new technologies have room for improvement. However, ETH has managed to accomplish a whole lot in less than a decade. It conceptualized a new way to raise money (ICO\/STO) and decentralized finance. In the coming years, Ethereum is set to introduce the world to Ethereum 2.0 and its layer 2 scaling solutions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These developments are likely to add a fresh set of advantages to using Ethereum which will attract even more enterprises. However, there are some things about Ethereum that warrant clarification. Let\u2019s address these myths and see things for what they are.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"_ETH_Myths_Everyone_Should_Know\"><\/span><strong>\u00a0ETH Myths Everyone Should Know<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It all started back in 2018 and 2019. Ethereum\u2019s competitors had started to circulate all sorts of baseless information. They spread rumours about the blockchain\u2019s inadequacy of privacy features, which made businesses anxious about using it. They also called the Ethereum blockchain slow and expensive.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Come 2021, it\u2019s apparent how the tables have turned.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ethereum is currently the most preferred network for enterprise applications and the network doesn\u2019t seem to stop growing. Investors that are sold on this promising cryptocurrency can start <\/span><span style=\"font-weight: 400;\">buying Ethereum in Canada here<\/span><span style=\"font-weight: 400;\">. For those who want to know more, this article debunks the myths that surround the potent Ethereum blockchain.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Ethereum_is_less_centralized_than_Bitcoin\"><\/span><strong>Ethereum is less centralized than Bitcoin<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Let\u2019s try and approach the concept of decentralization as Vitalik Buterin, Ethereum\u2019s creator explains it. He wrote a <\/span><span style=\"font-weight: 400;\">blog post<\/span><span style=\"font-weight: 400;\"> on Medium in which he mentioned a few of his thoughts about why there\u2019s a need for decentralization and how it can be achieved.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this post, Vitalik explains that decentralization is fundamental to the idea of a blockchain and shields it from a number of issues such as attacks, faults, and collusions. While countless hours have been invested in developing and enhancing decentralization, the precise definition is still not entirely clear.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s worthwhile to read the full blog post to get a thorough understanding of how one can think of decentralization and how it differs from distribution. Evidently, it isn\u2019t as black and white as most believe it to be. The debate is still on because of a lack of a clear definition.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the <\/span><span style=\"font-weight: 400;\">general consensus<\/span><span style=\"font-weight: 400;\"> seems that Ethereum is more decentralized than Bitcoin.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_Ethereum_transactions_really_expensive\"><\/span><strong>Are Ethereum transactions really expensive?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A single Ethereum transaction can set the transferer back by anywhere between $6 &#8211; $17. Naturally, this makes it an expensive affair for most.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But, let\u2019s take a step back and look at what happens in an Ethereum transaction. Each Ethereum transaction requires a certain amount of \u201cgas.\u201d Gas is a unit that measures the transaction\u2019s required computational power. When miners process any transaction, they demand compensation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To compensate them, the system must determine a monetary value. This monetary value is arrived at using Gwei, the unit in which each transaction is denominated. 1 ETH is equal to 1,000,000,000 Gwei. For instance, if a transaction\u2019s cost is 10,000 gas and the price of 1 gas is equal to 1 Gwei, the transaction\u2019s cost would come to 0.000010 ETH.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The network\u2019s soaring demand sometimes causes the gas price to touch new highs. The gas price can be viewed in real-time on <\/span><span style=\"font-weight: 400;\">ETH Gas Station<\/span><span style=\"font-weight: 400;\">. However, enterprises prefer to use private networks that don\u2019t require cryptos for operation, which helps them avoid transaction costs.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Ethereums_scalability_potential_is_limited\"><\/span><strong>Ethereum\u2019s scalability potential is limited<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It\u2019s often been claimed by crypto enthusiasts that the Ethereum blockchain\u2019s design limits its potential for scalability.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Applications such as DeFi and payments demand a much greater rate of transactions per second than Ethereum\u2019s current capability of 15 transactions per second. This doesn\u2019t even come close to Visa\u2019s 1,750 transactions per second.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, a number of solutions (aka layer 2) have been designed to remedy this. For instance, Rollups are used for increasing transition throughput and minimizing costs for the users. Without getting too technical, here\u2019s what rollups do\u2014they help increase blockchain throughout from 15 transactions per second to 1,000 transactions per second.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-294\" src=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2021\/06\/picture2-300x200.jpg\" alt=\"picture2\" width=\"550\" height=\"367\" srcset=\"https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2021\/06\/picture2-300x200.jpg 300w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2021\/06\/picture2-768x512.jpg 768w, https:\/\/digitalcoinprice.com\/blog\/wp-content\/uploads\/2021\/06\/picture2.jpg 829w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The number of Ethereum apps adopting rollups has been steadily increasing because it puts an end to the scalability problem. Meanwhile, Ethereum 2.0 is on the way which will further eliminate the scalability issue on Ethereum. It will allow almost 100,000 transactions per second, thereby offering DeFi the opportunity to grow sustainably.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Ethereum_20_is_nothing_more_than_a_speed_upgrade\"><\/span><strong>Ethereum 2.0 is nothing more than a speed upgrade<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Ethereum 2.0 will be a paradigm shift. It\u2019s not just an upgrade, it\u2019s a structural change. Ethereum will finally move to a Proof-of-Stake consensus from Proof-of-Work. As discussed in the last point, Ethereum 2.0 will also use an entirely new, sharded architecture for addressing its scalability issues.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Owing to the structural changes, it won\u2019t be a simple hard fork. It will be implemented as its own chain, with plans of migrating Ethereum 1.0 contracts and accounts over at some point in the future.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While the particulars of migration are still not finalized, users can keep themselves updated through the <\/span><span style=\"font-weight: 400;\">migration details page on the ETH hub<\/span><span style=\"font-weight: 400;\">. Speaking of migration and implementation\u2026<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Implementation_of_Ethereum_20_will_happen_at_once\"><\/span><strong>Implementation of Ethereum 2.0 will happen at once<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It would be rather daunting and impractical to implement Ethereum 2.0 at once. Ethereum 2.0\u2019s implementation, therefore, will happen in phases. Phase 0, the first phase, commenced in Dec 2020. The first phase introduced Beacon chain staking, but any complex smart contract functionalities were reserved for later phases.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Phase 1, the next phase of Ethereum 2.0\u2019s implementation, will introduce shard chains. This traces back to our previous discussion about scalability. Sharding, a structural innovation in Ethereum 2.0 that takes inspiration from <\/span><span style=\"font-weight: 400;\">database sharding<\/span><span style=\"font-weight: 400;\">, will address scalability issues faced by Ethereum 1.0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Phase 2, the third phase, will be the last stage of implementation. This phase will bring along account balances and smart contract functionalities.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It may be a while before all of these phases are implemented since they will first be put to extensive tests. It\u2019s expected that Phase 1 will commence in 2021 itself, and Phase 2 will follow soon.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Its_impossible_to_manipulate_Ethereums_network_config\"><\/span><strong>It\u2019s impossible to manipulate Ethereum\u2019s network config<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">13% of Ethereum\u2019s 2017 traffic was accounted for by CryptoKitties, the beloved blockchain game. The game lets players collect, purchase, breed, and sell cats virtually by converting ETH into fiat money. While this may look harmless at first, such applications could potentially collapse the entire network.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The game and smart contracts are controlled by the developers. However, these contracts can possibly be suspended without any warnings if the price equivalent of expenses starts to increase slowly in these apps. This offers security to developers against piracy that may exist in the accounts owned by the team.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the main account\u2019s key owner so chooses, they can freeze the whole game and the corresponding accounts. So, the claim that the Ethereum network cannot be manipulated is not quite true.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"ETH_Myths_Busted\"><\/span><strong>ETH Myths Busted<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Crypto is a fresh area, ready for lots of sowing. Undeniably, there are plenty of misconceptions about cryptocurrencies because of a lack of understanding. Don\u2019t listen to everything that people talk about on the bus; research and learn what\u2019s what.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ethereum, in particular, has been criticized amply. When a new technology starts to gain traction, it\u2019s only natural for it to have critics. There are some apprehensions about Ethereum, no doubt. However, there are also myths, like the ones discussed above, that are completely baseless.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For someone considering adding ETH to their portfolio, these myths can be a deal-breaker. Therefore, researching and finding the truth is mission-critical. Hopefully, this article cleared things up nicely.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cIf crypto succeeds, it\u2019s not because it empowers better people, it\u2019s because it empowers better institutions,\u201d claims Vitalik Buterin, the creator of Ethereum. The crypto craze is taking over. Institutions and individuals alike are investing in the digital asset class hoping to squeeze out a triple or even quadruple-digit return. As of today, Ethereum is [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":295,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-291","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum"],"_links":{"self":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/comments?post=291"}],"version-history":[{"count":10,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/291\/revisions"}],"predecessor-version":[{"id":2476,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/291\/revisions\/2476"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media\/295"}],"wp:attachment":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media?parent=291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/categories?post=291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/tags?post=291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}