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Rival Joseph Lubin urged the network to find a'more sustainable economic model'
Joseph Lubin, co-founder of Ethereum, has questioned the viability of competitor projects, including the fast-growing Solana blockchain, as venture cash floods into a slew of new cryptocurrency networks.
Rivals like as Solana are challenging the Ethereum blockchain, which has become one of the most popular digital ledgers in the world, by offering reduced transaction costs.
It was revealed by Lubin in an interview with the Financial Times that the Solana network was rewarding users for validating transactions at a much higher rate than the income earned by such transactions.
According to Lubin, Solana has to come up with a "more viable financial strategy for the network."
He explained, "That's natural." In our ecosystem, "all of the initiatives are basically faking it until they either succeed or fail."
The rapidly expanding blockchain project has had its fair share of skeptics in the past. Security has been cited as a reason for the network's frequent breakdowns by opponents who claim that Solana trades security in favor of efficiency.
"Simply looking at protocol income does not convey the complete narrative of the long-term performance" of a blockchain's economic model in response to Lubin's critique, Solana added."
Many tech investors are placing large bets on Ethereum alternatives including Avalanche, Near Protocol, and Solana in an attempt to cash in on the increased interest in cryptocurrency applications amongst the general public.
One of the leading blockchain software companies, ConsenSys, said on Tuesday that its valuation has more than quadrupled to $7 billion in a fresh $450 million investment round. The company's worth has risen as a large number of new Ethereum users have switched to its goods.
For fast increasing fields like decentralized banking and non-fungible tokens, Ethereum is the most extensively utilized digital ledger on the market. Lubin, who played a role in the creation of the network, has emerged as one of the project's most vocal supporters on Wall Street.
A feature that allows users to switch between Ethereum's cryptocurrency tokens has generated about $330 million in transaction fees since late 2020 for MetaMask, a software built by ConsenSys with more than 30 million monthly active users.
Lubin created ConsenSys Software with the assistance of JPMorgan during a restructuring that was completed in 2021 with the help of venture capitalists.
ConsenSys AG's former workers recently contested the validity of the reorganization and demanded a special audit, which is why ConsenSys AG is now requesting a special audit from the SEC. Intellectual property rights to goods such as MetaMask and other essential offerings were allegedly devalued, according to a lawsuit filed by former workers.
At the time of the sale, ConsenSys was "very transparent" about negotiating with the former workers and "understanding their worries," according to Lubin.
According to Lubin, "It's a totally different world in our ecosystem as we're bridging the divide into widespread usage."
ConsenSys received a fresh round of investment from ParaFi Capital, a cryptocurrency startup business funded by KKR. The second Vision Fund of SoftBank, as well as Microsoft and Singapore's Temasek, have all made investments.
Lubin and other shareholders of ConsenSys have refused to comment on whether they sold any of their shares in the fundraising.
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