In the past two weeks, Ethereum (ETH) has outperformed Bitcoin (BTC) with a 15.7% price gain compared to 12% for BTC. This rise follows Vitalik Buterin, co-founder of Ethereum, proposing the simplification of the Ethereum protocol for better efficiency and scalability. However, this proposal drew criticism from Blockstream CEO, Adam Back, who questioned the direction of Ethereum’s development.
At the beginning of May, Buterin shared his thoughts on simplifying the Ethereum protocol. He envisions making Ethereum "simpler, like Bitcoin," to improve efficiency and reduce system complexity.
Buterin proposed a long-term plan to simplify Ethereum’s consensus layer, which could also involve replacing the Ethereum Virtual Machine (EVM) with a more efficient RISC-V architecture to increase the scalability and resilience of the Ethereum network in the future.
Adam Back, CEO of Blockstream and a known supporter of Bitcoin, reacted to Buterin’s proposal by stating that simplifying the Ethereum protocol would not resolve the fundamental problems in its design.
According to Back, the account system used by Ethereum adds unnecessary complexity compared to Bitcoin’s simpler UTXO model. He is also critical of Ethereum’s transition to Proof of Stake (PoS), which he believes has concentrated power in large token holders, ultimately decreasing the decentralization of the network.
In his statement, Back suggested that investors "sell ETH before its value drops to zero and buy Bitcoin," indicating his distrust of the direction of Ethereum’s development. This criticism showcases the starkly contrasting views held by Bitcoin and Ethereum supporters regarding the optimal design and future direction of blockchain technology.
Following the announcement of Buterin’s proposal, Ethereum’s price remained stable above $1,820, showcasing relative strength compared to Bitcoin, which fell below $96,000. Additionally, Ethereum’s daily trading volume remains high, exceeding $7 billion, indicating active market participation and potentially positive investor sentiment.
Technical analysis reveals that Ethereum has formed an ascending triangle pattern on the daily chart, which could suggest a continuation of the uptrend from the previous strong bullish candle on May 2. If the price manages to break and close above $1,880 (approx. IDR 30,812,640), then the next target for buyers is $1,950 (approx. IDR 31,938,100). However, if it fails to break the level, the price could again test support around $1,783 (approx. IDR 29,201,174).
Buterin’s proposal to simplify the Ethereum protocol showcases the ongoing efforts to improve the network’s efficiency and scalability. Despite criticism from figures like Back, this move could pave the way for further innovation in the Ethereum ecosystem and ultimately increase the adoption of blockchain technology in general.
However, the contrasting views between Buterin, Back, and other leading figures in the crypto sphere highlight the ongoing debate over the best approach to building an efficient and decentralized blockchain system. Investors and developers must consider these different perspectives when making decisions about investing in and developing crypto technologies.
