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Will Ethereum become defunct, “like AOL or MySpace”?

Will Ethereum become defunct, “like AOL or MySpace”?

A recent ICO for Mobius raised $39m in two hours. That’s no mean feat – not the largest yet, but noteworthy as it was conducted on Stellar rather than the more popular platform, Etheruem. CEO and co-founder, David Goubard, explained his decision, describing Ethereum as being “like AOL or MySpace.” Damning words.

Cryptocurrency or blockchain unbelievers (sadly there are far too many out there) have a broad critique of the sector as having no basis of value and ultimately seeing no purpose or point to the future of cryptocurrency or blockchain. Mobius’ ethos undercuts this lack of vision with a view of the future that as a Muskian quality that connects seemingly unrelated sectors to enhance each other’s value and use.

What is Mobius?

Mobius is one to watch. They describe themselves as “Stripe for Blockchain” and want to take what Stripe did for credit cards (integrate payments directly with websites and apps instead of having a merchant account) for cryptocurrency payments, data and information transfers. This is where it gets a bit complicated so we’ll try to keep it as simple as possible:

  • Mobius’ objective is to “[connect] consumer applications… to the blockchain economy”
  • Mobius have a blockchain token called the MOBI which will integrate any other tokens into existing apps
  • Their platform will enable users to run “high fidelity data transmissions” on the blockchain, or in laymans terms: transfer information that requires a lot of precision and accuracy, that really must not be amended, tainted or otherwise corrupted on a system that records the information on the blockchain thereby maintaining the accuracy of said data. It means data can be verified on the blockchain.

Keeping up? Another interesting part of their offering is what they’re calling a ‘DApp’ store – decentralized app store – upon which many of the apps that want to benefit from the MOBI will exist and be available.

Stellar’s stellar future

So why Stellar? With enormous volumes of data Mobius plan to be using, transferring, exchanging, verifiying… they needed a nimble system that shares their future forward ethos. Mobius founder Cyrus Khajavandi explained why Ethereum can’t keep up: “Ethereum… protocol derivatives are too slow, too expensive, and too insecure to use for any real application.” An example of their failures is the crypto gaming app CryptoKitties, built on Ethereum but which experienced significant problems due to the speed of the ethereum network.

Stellar’s founding protocol makes transactions significantly cheaper, faster and much closer to being future proof. Meanwhile Bitcoin and Ethereum are already seeing major problems on their networks – so, like AOL and MySpace, leading the way and being a proofpoint of the potential and excitement around the new sector, so Bitcoin and Ethereum may prove also to only be a proofpoint.

To continue the analogy even further, Facebook’s lessons have been built around scalability but also adapting and updating constantly, and largely having their user audience at the centre of their approach. There may be time for Ethereum to learn these lessons, but we may see Stellar and similar blockchains (i.e. Ripple) take the helm and follow in Facebook’s footsteps.