Jez San is the CEO of FunFair Technologies, an online casino platform based on the Ethereum network. He is a long-term investor in bitcoin and other cryptocurrencies and he thinks the current market situation is just the beginning.
The main protocols used by cryptocurrencies are still deficient when it comes to delivering value to the users. Bitcoin is not an adequate method of payment due to its high commissions and long transaction times. For example, you will be charged the same amount when buying a cup of coffee and when sending 100,000 dollars. The promise to solve the scalability problem has not been kept yet.
The role of bitcoin as a value reserve is uncertain due to major changes in its price.
San thinks a more flexible alternative would be a better solution and he proposes Ethereum. The platforms such as Ethereum are an operating system for decentralized finances and commerce.
According to San, Bitcoin can be seen as DOS and Ethereum as Windows or Mac OS. There is nothing wrong with DOS. He was the first one to come and it is an essential part of the success of the computers.
The geeks grew up with DOS, but the computers were widely spread with the arrival of Windows and Mac OS. DOS is hard to understand, complicated to programme and there are only a few applications using it. Windows and Mac OS admit and encourage development of applications and they are easier to use.
The current situation is similar to the rise of internet in the year 2000. Thousands of new companies are coming out with highly innovative business models, trying to find new methods for financiation. The majority of them, such as Pets.com and Webvan, fail. On the other hand, many others will be the next eBay, Amazon or Google of the blockchain generation.
We should not lie to ourselves – Bitcoin today is a product for a small number of elitists, which can permit themselves the high commissions for transactions. They have chosen a path towards an alley without technical way out.
The DevCon3, a conference of developers of Ethereum, which took place last month, can be evidence of a different approach. With more than 2000 developers present at the conference, each of them paid 1000 US dollars to collectively boost the development of the blockchain technology, the future of Ethereum seems certain.
Of course, there are other new technologies based on the smart contracts, pretending to take the place of Ethereum. In 2018 and in the future, Ethereum and other technologies will continue to evolutionize.