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Author Topic: [2017-09-27] Vitalik Buterin Explains Flaws in ICOs and Scaling Issues in Eth  (Read 2680 times)
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September 27, 2017, 10:31:52 PM
 #1

Vitalik Buterin Explains Flaws in ICOs and Scaling Issues in Ethereum

During an interview with Korea JoongAng Daily and JoongAng Ilbo, two largest news publications in South Korea, Ethereum co-founder Vitalik Buterin discussed the potential of his creation, merits and flaws of initial coin offerings (ICOs) and his personal thoughts on whether cryptocurrencies such as Bitcoin will be able to replace fiat currencies.

ICOs: merits and flaws
Since the beginning of 2017, ICOs have evolved into a popular method of crowdfunding for Blockchain startups. WIthin less than a year, ICOs have raised over $1.5 bln, with several successful ICO projects such as EOS and Bancor raising hundreds of millions of dollars.

Structurally, ICOs are a phenomenal method of raising money in a decentralized manner, from a distributed ecosystem of investors. ICOs enable startups to gather money within a short period of time and also publicly demonstrate their valuations through the market cap of their tokens.

But, Buterin explained, there are flaws in ICOs. According to Buterin, many of the flaws in ICOs arise from the centralization problem of ICO projects. While ICOs are launched on top of a purely decentralized and peer-to-peer Blockchain protocol in Ethereum, ICOs are often run by companies or single development teams with large funding.

Read MOre https://cointelegraph.com/news/vitalik-buterin-explains-flaws-in-icos-and-scaling-issues-in-ethereum
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September 28, 2017, 04:09:59 AM
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Looks like there is something wrong with the link as I can't open it.

First time I heard Vitalik making some sense. LOL. Its not his usual self promotion of Ethereum. So an extent I believed that having a inexperienced company handle to much money to really put forward the projects their offered, may not be a good idea. That's why a lot of ICO never became successful or have scam its investors. So that's a clue for those who are willing to put their hard earn cash, check the team behind if they have the right tools to really bring the project to the next level. Younger people with less experience rise to positions of power. That combination will lead to the downfall of the company behind the ICO's.

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September 28, 2017, 05:48:27 AM
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On scaling of the ETH network:

Quote
Vitalik Buterin, Ethereum co-founder comments:

“I would say two to five, with early prototypes in one year. The various scaling solutions, including sharding, plasma and various state channel systems such as Raiden and Perun, are already quite well thought out, and development has already started. Raiden is the earliest, and its developer preview release is out already.”

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September 28, 2017, 08:33:43 AM
 #4

Looks like there is something wrong with the link as I can't open it.

First time I heard Vitalik making some sense. LOL. Its not his usual self promotion of Ethereum. So an extent I believed that having a inexperienced company handle to much money to really put forward the projects their offered, may not be a good idea. That's why a lot of ICO never became successful or have scam its investors. So that's a clue for those who are willing to put their hard earn cash, check the team behind if they have the right tools to really bring the project to the next level. Younger people with less experience rise to positions of power. That combination will lead to the downfall of the company behind the ICO's.

Despite what you might think of the guy, he actually is a lot more sensible than most of the company he keeps... and good journalists/editors have a way of leading interviews into good reports, which is the treatment I believe the South Koreans gave here Wink

While I can't wholeheartedly support the way Ethereum is managed, I suppose ongoing development is, after all, focused on mitigating the issues that Buterin can foresee with the network. All these apps jumping on, especially from states and corporations, it seems to unsettle him and the other developers  he brought on board, in a good way that's forced them to rethink their direction over the years.

But he must be also thinking inwardly about how these centralized ICOs are a projection of projects like Ethereum. And no, I'm not the radical libertarian here to think everything must be decentralised.

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