Joseph Lubin, co-creator of Ethereum and founder of ConsenSys, a full-stack blockchain business, has shared his thoughts on Ethereum’s future.
After the London hardfork goes live on mainnet, Lubin believes that a surge in demand will likely push the price of Ethereum higher.
Lubin explained why he believes what he believes. He said that, like other Ethereum upgrades aimed at migrating to ETH 2.0, the London hardfork – which, according to rumors, is likely to go live on mainnet by August — provides various network improvements. He views the most significant benefit to be the fact that the upgrade will deflationize Ether’s supply, referencing to EIP-1559.
Lubin points out that the issue of new tokens on the network has previously been inflationary, which is why this is a good thing for the network. However, as a result of the upgrade, miners will no longer receive fresh currency for confirming and adding transactions to the blockchain; instead, the network will burn the transaction fees, limiting the amount of Ether in the long run.
In addition, the Eth 2.0 upgrade, which he notes is now live and has seen individuals stake their ether in the algorithm to participate, will transition the network from a proof of work (PoW) mechanism to a Proof of Stake (PoS) mechanism to add new blocks when it is fully implemented.
“The network will see the energy-intensive proof of work method replaced with the immensely energy-efficient proof of stake mechanism that gives the network’s trust features in December or January,” he stated.
Due to the freezing of much Ether, he said that his company, ConsenSys, which is strongly rooted in the Ethereum ecosystem, was already seeing a surge in demand for Ether to conduct transactions and decentralized apps. Over $60 billion in Ether is currently locked in smart contracts on DeFi networks, with an additional $6 billion invested on the Eth 2.0 platform. This issue, he believes, will only worsen after the London hardfork and then Eth 2.0 are completely implemented. “There will be a run-up of demand, and with it the value of Ether,” he argues.
Other Ethereum supporters are likewise looking forward to the upcoming London hardfork and Eth 2.0. It’s been speculated that the changes will force Ethereum to convert to Bitcoin. While a flippening has long been predicted, these enhancements provide the most hope, since multiple indicators suggest that Ethereum may be on its way to overtaking Bitcoin as the most valuable cryptocurrency.
Observers have noted that Ethereum has been surpassing Bitcoin in terms of the number of transactions settled and the number of fees paid for transactions, with Ethereum currently performing about 3 times more transactions on-chain than Bitcoin, and even Ethereum applications, such as Uniswap, taking in more fees than the Bitcoin network, making a strong case for Ethereum adoption.