Popular analyst Willy Woo said that Ethereum (ETH) encourages innovation despite the number of scams on the network.
In a new interview, Woo said that fraudulent activities occurring on Ethereum are nothing new as they also occurred during the early days of the internet.
“I think it has been a hotbed of innovation. The flip view of the maxis will tell you that it has been a hotbed of creating scams and Ponzi schemes. It’s made it very easy for a lot of teams to build something and raise a lot of money with very flimsy deals and make money, I think that’s the downside of that.
If you look at the 1990s of the world wide web, there was the famous elevator pitch. In 30 seconds while riding the elevator, you could walk away with a few million dollars to back your idea. It was very similar to what happened in 2017 with a white paper posed, ‘here’s an idea, let’s put a blank sheet of paper and raise tens, hundreds of millions.
Like the valuable companies that emerged from the dot-com bubble, he says there are innovative Ethereum projects out there.
“We see that in the Bitcoin world as a hotbed of scams, but actually if you look at the web, Amazon.com came out and some very important startups that built key infrastructure for the world and I think it’s fair to say that’s happening in Ethereum. Of the 10,000 coins that exist, a large part of them are on the Ethereum network and many of them are complete garbage, but there are some really cool innovations.”
Ethereum: Smart Contracts
Woo says the leading smart contract platform has downsides in terms of security and scalability, but provides learning experiences that enable developers to build better networks.
“There are many things that we have learned from it, so now we have competing networks within smart contracts that are trying different things, whether it is scalability and there are others that are much more to protect against booing. For example, if you’re writing financial code, it needs to be built in a way that’s much more robust.
I think of Ethereum as a very successful experimental platform. We’ve built some really cool stuff on it. It’s a huge commitment that creaks under the weight that it can’t scale very well, but we’ve learned an incredible number of lessons.”
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