- Nicholas Weavercalled the Ethereum ecosystem a “spontaneous Ponzi scheme.”
- “From a processing point of view, Ethereum’s processing power is 1/5000th of a small Raspberry Pi computing module,” Weaver shared.
- Weaver also criticized the cryptocurrency industry in general, claiming that the technology was not innovative.
Nicholas Weaver, nicknamed Skerry Technologies’ “Chief Mad Scientist”; EthereumHe described it as a “spontaneous Ponzi scheme”. Weaver, who spoke with hosts Kailey Leinz and Matt Miller on the Bloomberg Crypto channel, is known as a crypto critic and cybersecurity expert. Weaver brought up the allegations to be discussed about several assets in the crypto space during the call.
Criticizing the Ethereum network, Weaver shared a surprising comment, claiming that economically it was a spontaneous Ponzi scheme. Answering the question about Ethereum’s transition to proof-of-stake, Weaver said, “Proof of Stake (PoS) It doesn’t solve Ethereum’s problems.
“So first of all, Ethereum has been promising proof-of-stake since its inception. And they always claimed it was six months before debut. It’s hard to follow, I’d appreciate it if you’d wake me up when this transition happens.”
The computer scientist shared an opposing view, stating that when he closely examined the efficiency of the system, he was not affected by proof-of-work or proof-of-stake. From a transactional point of view, Ethereum’s processing power is small, Weaver said. Raspberry Pi stated that the computation module is 1/5000th the power, and that switching to proof-of-stake does not solve this problem. According to him, it also creates another difficulty, such as “the one with the gold makes the rules”.
“The Ethereum community has already shown that the ‘code is the law’ statement is a lie. If you steal their money like the original DAO hack they will change the code to steal it back. And moving to proof-of-stake literally means that whoever has the most money makes the rules.”
Also at UC Berkeley International Institute of Computer ScienceWeaver, a researcher at ICSI, believes that crypto isn’t as technologically innovative as people think. He claims that crypto mining consumes half of the world’s electricity but can handle very few transactions. “The technology is so bad that I can only teach it to mock it,” he commented.
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