Earlier this week, the Co-founder of Ethereum and the CEO of the blockchain firm ConsenSys, Joseph Lubin was interviewed by Bloomberg Crypto. The subjects discussed during the talk were Ripple and EOS in the blockchain space, the cryptocurrency market and the blockchain technology, the scalability dilemma and more.
Correlation between the cryptocurrency market and technological development
The conversation opened with a discussion on the cryptocurrency market and its correlation with the technological developments in the blockchain space. Despite being from the developer community, Lubin spoke about the prices, bubbles, and how it is correlated with technology. He said:
“This is something we have seen so many times since 2009 when Bitcoin was invented. We’ve seen rises and falls, we’ve seen what many call bubbles. We’ve seen six big bubbles, each more epic than the previous one. …the growth has been exponential. each of these bubbles has the advantage of bringing attention to our ecosystem. It brings entrepreneurs, it brings developers, it brings money. It brings the prospect of building fundamental infrastructure and creating more value.”
Lubin believes that there is a strong correlation between the rise in price and the growth of the fundamental infrastructure in the ecosystem. Subsequently, the developer community is way bigger in magnitude than it was about ten months ago, stated the Ethereum Co-founder.
The challenge of scalability
When asked whether the problem of scalability could be solved this year or not, Lubin replied by saying that scalability has been an issue for decades now. Software developers have been making efforts to solve it by maxing out the available technologies.
The blockchain developer also stated that the community has achieved tremendous scalability on the web, in terms of transactions per second. However, this had to be compromised down to 20 transactions per second as the new blockchain approach to build a decentralized worldwide web had to be followed. Here, Lubin added:
“…but that’s an infrastructure that automates trust and guarantees execution and that’s a much better foundation on which to build the next surging scalability.”
Ripple and EOS in a decentralized scenario
In Lubin’s opinion, Ripple is a payment system rather than a technology or a protocol. Hence, he does not consider Ripple as a competitor in the blockchain space. EOS, on the other hand, is following a slightly decentralized approach to building its blockchain ecosystem. About a future scenario of EOS, Lubin stated:
“We’re moving into a world where we are going to have liquid deep market for many different kinds of crypto assets, commodities, equities, bonds, cryptocurrencies. In that world you need a very decentralized trust layer.”
He also mentioned EOS as an interesting technology but with multiple risks and dangers. Thus, the ecosystem can be treated as a layer 2 technology. For instance, it can be linked to a smart contact on Ethereum and attain complete security on the Ethereum network. Moreover, all the tokens in layer 2 will be protected by layer 1, which is Ethereum in this case.