Ethereum Scalability / Viability

Ethereum has been the dominant platform on which to build tokens. And yet, there are serious problems with its scalability. In 2019, Vitalik admitted that the network is almost full / clogged up:

Also, the transaction costs would be getting out of hand. I remember interviewing the Kik Messenger team about this on our panel at the Blockchain Tech Summit in NYC:

Even one successful project can clog up the network. Here is the inside story from CryptoKitties:

The network started to become really clogged. All of the blockchain read activity caused our daily requests to explode from 2 Billion/day to over 4 Billion/day… overnight! In addition, the pending transaction queue kept rising, which means the network wasn’t processing fast enough to clear out new requests. When that happens, the miners reset the gas price to make transactions cost more, and then market forces will control the queue. So, all of a sudden, the fees to buy the kitty cost more than the asset itself. That was not good, and was the trigger that we had a problem. That threatened to kill CryptoKitties entirely, because when the fees are so inhibitive, it’s game over.”

We will need a new architecture for crypto to power everyday payments. Otherwise, these tokens will continue to have a reputation as a “scam” because they can raise money but can’t actually be used.


I mean even without Kik messenger has some other problems as well. SEC had a huge problem with them over their KIN tokens.

Interesting read. I’ve had concerns with Ethereum for a long time.

It’s sad to hear such news from the top project.
Is it possible to clean the network? I mean, at least hypothetically.

1 Like

This just in: ETH has $99 transaction fees!


Well now that the DeFi bubble has burst we are seeing gas fees normalize a bit. About time because they were pricing everyone else out of making transactions and stifling growth.

Which is the new angle of Intercoin about solving those problems?