Bank of America (BofA) has said Ethereum needs improvements in scalability in order to retain its market share from newer blockchains such as Binance Smart Chain, Tron, Avalanche and Solana, according to a CoinDesk report

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Fast facts

  • The multinational bank added that features like greater scalability, lower transaction fees, and proof-of-stake (POS) consensus mechanisms will “likely be key as the Web3 ecosystem of decentralized applications emerges,” CoinDesk said. 
  • The Ethereum blockchain’s switch to POS from a proof-of-work (PoW) consensus mechanism — provisionally expected in mid-September — is likely to reduce Ether token’s energy consumption by more than 99%.
  • People tend to criticize Ethereum as bad because it doesn’t allow for enough scalability, Igneus Terrenus, head of communications at crypto exchange Bybit, told Forkast. Just because there is scalability doesn’t mean that a chain is perfect — there can be all the scalability, but if no one comes to use it, then there’s no point, he added.
  • Ethereum co-founder Vitalik Buterin said last month that Ethereum will be about 55% complete after “the Merge,” when it will be a much more scalable system, able to process 100,000 transactions per second.

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