System overload 🤯
A faster and cheaper network can lead to an overwhelming number of single or duplicate transactions. Last September, Solana suffered a 17-hour outage
following an attack that flooded the network with more than 400k transactions per second. Yikes. Ethereum has close to 300k validators and has been properly stress-tested, where Solana has approximately 1,000 validators that only have so much bandwidth. In the case of Solana’s most recent outage, validators ran out of memory and crashed.
No copy cats 😼
There are many protocols trying to replicate what Ethereum has already accomplished, but are running into the same issues as Solana. As Peter Thiel would say, these aren’t “zero to one” concepts. 💡 There’s a reason why Ethereum is the top choice for developers, has the most user activity and is leading the way in terms of innovation. 🏆
There are a few reasons why Ether Capital remains focused on Ethereum:
- The emergence of layer-2s, which are frameworks built on top of existing blockchains to improve scalability and efficiency. 🆒
- We view higher transaction costs as paying for a service that properly compensates validators, which helps create a more secure network. 💰 🤝
- Decentralization and security matters. With fewer validators, you make the network more vulnerable to attacks, censorship and single points of failure. ⚠️
- Tooling 🧰 and infrastructure is hard to replicate. It’s an ecosystem that is constantly growing and evolving overtime. 🌱
We believe in supporting developers who are building strong foundations so open protocols can handle a wide-range of activity. However, this technology is still very new and cutting-edge, so it will take time.
You don’t want to build a house out of straw or sticks. We all remember how that fable ends, right? 🐷🐷🐷