Ethereum was touted as a new way of enabling intelligent contracts without any fees for commercial use until someone dug in and found that its “work” requires an enormous amount of computing power and electricity, paid for by its innumerable miners. You start trading Ethereum with the most reliable trading platform, like Ethereum Code.

It has been questioned as antithetical to Blockchain’s green ambition of “trying not to use much energy.” The recent dispute in the Ethereum community has been an intense and highly publicized one, which is hard to wrap our heads around.

The controversial code change intended to allow miners to “snooze” a block for a set period with no reward for mining (as in Bitcoin), dropping the transaction fee producers pay consumers. This design has several problems, though it was promoted as an improvement on the current model that incentivizes miners by adding transaction fees. In the below-mentioned portion, we examine why Ethereum is not immune from criticisms and explain how the Ethereum community responds. 

Reasons why Ethereum is facing a lot of criticism:

1. Higher Gas Fees:

 The congestion and delay in transaction delivery due to increased network usage will lead to higher gas fees. The Ethereum platform is based on a fixed amount of gas, 15 GWEI. One Ether equals 1000000000 Gwei, which means one Ether will equal 0.0000000015 Ethers for the gas fee. Therefore, an increase in demand for the transaction will lead to a hike in gas price, and when it reaches a level where most transactions are declined, it will lead to stagnation of transactions. It means there would be no critical mass for the network, and it would collapse.

2. High electricity consumption:

Electricity consumption is a problem that Ethereum’s Proof of Work algorithm has been facing since its inception. With the creation of a global network, this problem will worsen because every node in the network requires a lot of computing power to verify transactions and build blocks on the chain. With an increase in demand for more transactions and more miners, electricity usage will increase. This aspect of the network is directly related to its efficiency. But it also has an independent effect on decentralization because those who own many nodes can influence the Blockchain by consuming excessive energy.

3. Low transaction speed:

Ethereum’s current block time is 15 seconds, which means it can handle 15 transactions per second. It is way lower than conventional payment networks like Visa, whose processing capacity is above 10,000 transactions per second. Transactions during the ICO boom took as long as two days to settle. As the network congestion worsens, this problem will worsen, and users will face delays in the transaction process. It also means that Ethereum cannot act as a currency for daily payments.

4. The DAO Hack:

The DAO hack was a big problem for the Ethereum platform and its community because it led to much negative press against the Ethereum Foundation and Vitalik Buterin. Pundits were questioning whether people and the validity of Ethereum itself could ever save the Ethereum project. The DAO hack was a security inefficiency that resulted from a poorly implemented smart contract, which a group initially wrote of ‘white hat hackers, including Buterin himself.

Buterin could not take back his code because it had already been released to the public, and it was too late for him to try and fix it. This security issue created an existential crisis for the Ethereum community because it showed that the system has fundamental flaws that people cannot fix unless these bugs are built into its core. These flaws will lead to further vulnerabilities and reduce the reliability of Blockchain’s decentralized structure, which is vital to its integrity.

5. No scalability:

The Ethereum platform currently suffers from scalability issues. As a result, the core developers of Ethereum are implementing sharding and proof of stake to fix the transaction time and mining difficulty. But this change will require a hard fork, resulting in another DAO situation where the code gets rolled back.

6. Ethereum is not immune to criticism:

Ethereum’s architecture is based on the proof-of-work consensus, making it difficult to rectify inherent design flaws without a hard fork. Ethereum Foundation is making changes to its protocol to ease network congestion and make the blocks lighter. But its work-in-progress upgrade, “Metropolis,” does not provide a permanent solution to these problems.

7. Ethereum is an experimental platform: 

Even though Ethereum is already being used as a testing ground by more giant corporations like JP Morgan, Microsoft, and Intel for their blockchain projects, the platform still needs much improvement to be ready for commercial use. Furthermore, the current issues are only the tip of the iceberg; there are rumors that potential users have created private test networks because they need to trust Ethereum’s ability to scale well enough.