dApps Already Built on Ethereum Show Its Potential, Even 'Without Scaling', Cybersecurity Professional Argues

Anthony Sassano, a “cyber threat detection expert” and the co-founder of EthHub, a “fundamentals-focused, open source, community-driven Ethereum research and resources hub”, has said that there are already legitimate use cases for Ethereum - even though the blockchain network has not been able scale effectively.

Sassano, a resident of Australia and an IT and computer programming graduate from La Trobe University, argued via Twitter that “people are putting too much emphasis on scale as a ‘make or break’ for Ethereum.”

List Of Useful Apps Deployed On Ethereum

He pointed out that “without scale”, the following platforms have already been developed on Ethereum:

  • MakerDAO: an ecosystem consisting of a stablecoin (Dai) and the issuance of “collateralized loans” - which is managed by “decentralized governance”,
  • Stablecoins (a few examples):
    • Gemini Dollar (GUSD) - ERC-20 compliant token backed 1-to-1 with USD;
    • USD Coin (USDC) - “an Ethereum token, so you can store it in an Ethereum-compatible wallet, like Coinbase Wallet.”
  • Burner Wallet: an initiative that aims to allow users to exchange “an intuitive currency like DAI” through a user-friendly interface. It’s best suited for places “where it's hard to find important goods with the traditional currency or the currency may fluctuate immensely in value due to inflation.”
  • Augur: an Ethereum-based decentralized predictions market platform,
  • Gnosis: a predictions market network built on Ethereum,
  • Uniswap: a protocol for “automated token exchange” on Ethereum,
  • Compound: an “Ethereum protocol that establishes money markets with algorithmically set interest rates”,
  • Dharma: a “suite of smart contracts and developer tools that make it possible to borrow and lend cryptoassets on blockchains like Ethereum”,
  • dYdX: a protocol for “decentralized margin trading and derivatives”

In response to Sassano’s claim that it’s not absolutely necessary for Ethereum to scale - in order for its platform to offer value, Ari Paul, the chief information officer at BlockTower Capital, a professional trading and portfolio management firm focused on cryptocurrencies, remarked:

Disagree. Many [Ethereum-based applications] exist but can’t work in a meaningful way with current limitations. Augur is a prime example.  It’s a great proof of concept but not a credible consumer product currently. If it can’t support even a few thousand active users….

Working Well Without Scaling Does Not Mean "We Don't Need To Scale"

Clarifying what he meant, Sassano said his “point was that [Ethereum-based apps] work in some way without scale” and that MakerDAO “works very well without” having to make upgrades to Ethereum. However, he acknowledged that he “didn’t mean to say that Ethereum doesn’t need to scale.”

Expressing confidence in Ethereum’s long-term potential, Twitter user Mike Fernholz (@MikeFernholz) said:

Many of these will improve and become more efficient, like Veil’s use of [the] 0x [protocol] (an Ethereum-based specification for building decentralized crypto exchanges) to batch transactions. I don't think Augur's goal is to be consumer facing right now.

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Those Banned From Facebook May Not Be Able to Use Its Cryptocurrency Libra

Facebook’s two days of congressional hearings on the social media giant’s cryptocurrency ambitions seemingly revealed that those who have been banned from Facebook may not have access to Libra.

During the congressional hearing Facebook had to answer some tough questions, and one of them came from Representative Sean Duffy, which asked the company’s cryptocurrency head, David Marcus, who’ll have access to Libra.

The Congressman initially asked Marcus who could use the cryptocurrency, to which Calibra’s CEO answered: “anyone that can open a Calibra account, that can go through KYC [know-your-customer checks] in countries where we can operate.”

Duffy then referenced two individuals banned from Facebook for violating its community guidelines, Louis Farrakhan and Milo Yiannopoulo, and asked whether they’ll be able to use the social media giant’s cryptocurrency.

Marcus ended up replying he doesn’t “know yet,” after seeing Duffy hold a $20 bill and ask hin who can use it. His point was that cash doesn’t discriminate, and that anyone who can hold it can use it.

While throughout the hearing Marcus tried to point out the company will follow appropriate regulations and comply with lawmakers, Duffy responded that a proper answer would be “as long as you abide by the law, you can use Libra.” The fact he didn’t get this answer, Duffy said, gave him “great pause.”

Speaking to The Daily Beast Elka Looks, a Facebook spokeswoman, clarified Marcus addressed the Congressman’s concerns later on in the hearing. She stated:

For Libra, anyone who is engaging in lawful activity will be able to transact on the network. Facebook will have no say. For Calibra, there is no policy in place yet, but we will share it when it is closer to being finalized.

The news outlet adds that Calibra, Facebook’s wallet to send, receive, and hold Libra, doesn’t yet have final terms of service or a privacy policy. All of this means that those who’ve been banned on Facebook may not have access to its cryptocurrency.

As CryptoGlobe covered, Congressman Warren Davidson implied during the hearings Facebook’s crypto is a ‘shitcoin’ as it doesn’t have some of the properties bitcoin has. The Congressman made it clear bitcoin has no central authority that can censor transactions or dilute its value, while Libra has the Libbra Association.