Explosive Crypto Growth Days Are Over, Ethereum Co-Founder Says

  • Blockchain growth and adoption is already approaching its "ceiling", or maximum potential, Ethereum co-founder Vitaiik Buterin said.
  • Buterin added those interested in cryptocurrencies need to get involved in a more in-depth manner.
  • Crypto users should be encouraged to explore "real applications" and the "real economic activity" associated with digital currencies, he noted.

Ethereum co-founder Vitalik Buterin recently told Bloomberg the blockchain industry has already experienced explosive, or exponential, growth and “there isn’t an opportunity for yet another 1,000 times growth in anything in this space anymore.”

Blockchain Growth Approaching "Ceiling"

Buterin added that the “average educated person” has heard of distributed ledger technology (DLT) by now at least once. He also remarked:

“The blockchain space is getting to the point where there’s a ceiling in sight.”

Vitalik Buterin

As such, we can no longer expect more significant “growth in anything in [this] space,” Buterin said. Going on to explain the growth and adoption of bitcoin (BTC) and other cryptocurrencies, Buterin added that marketing by the blockchain community during the first six or seven years of their existence helped people become more aware of them.

According to the Russian-Canadian programmer, the marketing strategy that has been used so far to encourage people to use digital currencies is “getting close to hitting a dead end.” Those who are now genuinely interested in cryptos need to get involved in exploring the “real applications of [their] real economic activity,” Buterin noted.

Notably, the blockchain developer’s comments come at a time in which the Ethereum blockchain’s native token, ether (ETH), had dropped below the $200 mark. Ether is currently trading at $201according to CryptoCompare data, and its value has now declined well over 70% this year.

Cryptocurrency Prices Decline Further

Bitcoin, the flagship cryptocurrency, has also plummeted and is trading slightly below $6.400 at press time. This, after briefly surpassing the $7,000 mark on August 28. Most market analysts have attributed the recent (and further) drop in cryptocurrency prices to reports claiming Goldman Sachs postponed its plans to launch a crypto trading desk. The financial institution's CFO has since then revealed the Goldman Sachs is still working on it.

As CryptoGlobe reported, Stephen Innes, the chief investment officer at SFG Alternatives, remarked that Goldman Sachs delaying the launch of its crypto trading platform would be “a huge blow” to the digital currency market.

Innes said that cryptocurrencies will remain “thinly traded” because of the lack of proper “regulatory oversight” and the “intense, intense scrutiny” over fraudulent activity associated with them. It is also unclear whether bitcoin and other cryptos are currencies or commodities, and if they’re supposed to be a store of value, they’re doing a “very poor” job of retaining value, Innes argued.

'Bitcoin Type' Privacy Enhancing UTXO Transactions Now Available on EOS

Omar Faridi

The developers of pEOS, a project focused on enabling private and “untraceable” transactions on EOS, one of the largest platforms for building decentralized applications (dApps), have noted that they intend to provide tools which will allow users to conduct efficient token transfer transactions while maintaining their financial privacy.

“Accelerating Any Aspect of EOS” in Direction of Providing Greater Privacy

As explained in pEOS team’s Medium blog post, published on May 16, 2019, the privacy-enhancing crypto project is "much larger than just delivering pEOS.” The development team wrote:

We consider part of our mission to help educate, provide support, provide tools, and accelerate any aspect of the EOS blockchain in the direction of providing privacy enabled features and technologies. We strongly believe in the multiplicative effect this can have to every aspect of the EOS ecosystem.

Bitcoin Type UTXOs for EOS

In order to add more functionality to the EOS blockchain, while promoting economic privacy, the developers of pEOS have introduced a new smart contract which “implements bitcoin type” unspent transaction outputs (UTXOs) for EOS-based tokens.

As mentioned in pEOS team’s blog, UTXO was first used by the developers of the Bitcoin protocol, and it is “one type of output which can be either unspent (UTXO) or spent.” The outstanding balance of a UTXO-enabled wallet can be calculated by adding up all its spendable UTXOs, pEOS’ blog noted.

A UTXO Needs to Be Spent “as a Whole”

Transactions are processed by spending a certain number of UTXOs while producing new UTXOs for the recipient (of a transfer) and for any change that is returned to the sender, pEOS’ blog explained. The pEOS team clarified that “amounts in UTXOs don’t mutate.” This means users cannot “spend only some part of a UTXO.” In order to conduct such transactions, users must spend the UTXO “as a whole.”

According to pEOS’ team, these “constraints on what a UTXO is and how it is immutable, is what allows for privacy algorithms to be built on top of them.” For instance, the privacy-centric CoinJoin algorithm can be used with the smart contract-based UTXO code released for EOS, pEOS’ developers revealed.

On May 17, 2019, Block.one, the Cayman Islands-registered developer of EOS, released new software development kits (SDKs) for both Swift and Java developers. The latest SDKs for EOS aim to provide more support for native smartphone applications in order to offer “richer, more engaging experiences.”