Joseph Lubin: Ethereum’s High Fees Are Growing Pain

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High fees on the Ethereum network are a “measure of success” and are attributed to “growing pains.” This opinion was expressed by the co-founder and CEO of ConsenSys Joseph Lubin in an interview with Decrypt.

The discussion of the problem of gas prices in the blockchain, the second largest cryptocurrency by capitalization, erupted with renewed vigor after an emotional thread on Twitter by the head of Three Arrows Capital Su Zhu at the end of November.

He criticized Ethereum for its high fees and said he was abandoning it “despite having supported it in the past.” Due to the cost of gas, blockchain is not available to beginners, he added.

“This is the pain of growing – something that cannot be avoided. When a new technology becomes successful, there are always scaling problems. So, whether it’s CPU cycles, screen size, or memory, you usually turn to programmers to maximize the technology’s capabilities. And it turned out that we see how consumers make the most of the capabilities of the blockchain, ”says Lubin.

Ethereum 2.0 will help reduce both transaction costs and energy consumption, he said. He expects the launch of the second iteration of the network in “the second, possibly the third quarter of next year.”

Lubin also noted that the problem of Ethereum’s scalability is already being addressed through second-tier solutions.

“Here we see hundreds, but rather tens of thousands of transactions per second, which are actually very inexpensive – this is the level of Solana and Avalanche. Both systems are cool, by the way, but as they are more and more used by consumers, the commissions in them grow, “- said the head of ConsenSys.

In November, the company closed a $ 200 million funding round, which was estimated at $ 3.2 billion. For some institutional investors, in particular JPMorgan, investments in ConsenSys have become a proxy solution to enter the cryptocurrency industry, Lubin said.

“They are large regulated banking institutions, so it is not easy for them to do it directly,” he stressed.

Earlier, Lubin said that Ethereum will become the “next generation economy” and will be an order of magnitude larger than Bitcoin.

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