Forged from Ethereum’s Shortcomings

Ethereum is widely regarded as the backbone of decentralized applications (dApps) and smart contracts. However, despite its innovations and widespread adoption, the network has several challenges that users and developers must consider. Here are some of the key drawbacks of Ethereum:

1. High Gas Fees

One of Ethereum’s biggest issues is the high cost of transactions, especially during network congestion. Gas fees can become prohibitively expensive, making it difficult for small-scale users to participate in decentralized finance (DeFi) or non-fungible token (NFT) markets. While Ethereum 2.0 and layer-2 solutions aim to reduce fees, the problem persists.

2. Scalability Limitations

Ethereum's current infrastructure struggles with scalability. The network can only process around 15 transactions per second (TPS), leading to slow confirmations and congestion. Although upgrades like sharding are expected to improve scalability, implementation has been slow.

3. Centralization Concerns in Proof of Stake (PoS)

With Ethereum’s shift to Proof of Stake (PoS), validators must stake 32 ETH to participate, which is a high barrier for many users. As a result, staking has become dominated by large entities and centralized exchanges, raising concerns about network decentralization.

4. Smart Contract Vulnerabilities

Ethereum’s smart contracts, written in Solidity, are powerful but also prone to security flaws. Several high-profile hacks and exploits have resulted in millions of dollars in losses. Developers must be extremely cautious when deploying smart contracts, as errors can be irreversible.

5. Regulatory Uncertainty

Governments and financial regulators are scrutinizing Ethereum and other blockchain networks. The classification of ETH as a security or commodity remains uncertain, which could impact its adoption and legal standing in different countries.

6. MEV and Front-Running

Miner Extractable Value (MEV) is a persistent problem where validators and bots manipulate transaction orders to maximize profit. This can lead to unfair trading conditions in DeFi applications and reduce the transparency of the network.