Bitcoin Core developer and Stellar technical consultant Jeremy Rubin published an article that questioned the future of Ethereum.
This was due to the so-called “economic abstraction” in the network.
Creator Ethereum Vitalik Buterin did not stay away from this statement and brought his arguments, refuting Rubin’s theses.
The term “economic abstraction” describes the payment of a commission (gas) for the execution of smart contracts or transactions using ERC-20 tokens or an asset not associated with Ethereum.
Jeremy Rubin said that if all owners of smart contracts could pay gas in native to their contracts tokens, this would lead to an excess of Ethereum crypto currency in the market and, consequently, to its price collapse.
In his response, Vitalik Buterin noted that he would agree with these forecasts if the Ethereum team did not work on improvements to maintain the relevance of the cryptocurrency.
To solve the described problem, the creator of Ethereum offered two options: a modification of the compensation market and a fee for storing data in the network. The first option involves charging the initiators of the blocks a minimum fee in Ethereum for targeting.
The second method, proposed by Buterin, includes payment in Ethereum for each byte of data in order to avoid the “sleeping mode” of the block. With both mechanisms, further asset incineration is expected.
Vitalik Buterin said that in any case, economic abstraction can be implemented only at the user level, and the manufacturers of the blocks would still have to somehow interact with Ethereum.
“You can also use interim solutions where third-party participants, using” wrapper transactions “, will charge users for transactions in other tokens, and then settle with block manufacturers using Ethereum,” he added.
Also, Buterin stressed that the implementation of the consensus algorithm Proof-of-Stake will allow the Ethereum cryptocurrency to strengthen its position in the market.