Recently, the founder of Hyperchain, Shi Xingguo, was interviewed by 21Jingji to explain the Ethereum merger. In the article “Controversial Ethereum ‘Merge’: Attempt to Reduce Power Consumption from Proof of Work to Proof of Stake,” Shi Xingguo provided detailed explanations of the Ethereum merger. He discussed the potential risks (technical or moral) and how it would affect the global ecosystem. To what extent would technological upgrades determine the development of the cryptocurrency industry? Would the attitude of overseas regulatory agencies towards cryptocurrencies change in response to this? How should we view the hard fork, and how can we interpretate Vitalik Buterin’s optimistic views?
Shi Xingguo believes that this hard fork is a necessary attempt. Ethereum has made a lot of progress at the Layer 2 level, but it has been stagnant at the Layer 1 level for a long time. The capacity and performance of Ethereum are no longer proportional to its ecological scale, which has led to the emergence of many Ethereum sidechain projects and caused serious ecological fragmentation.
Shi Xingguo believes that the risk of this hard fork is that it may split the Ethereum ecosystem in two, but this is still much better than letting the Ethereum ecosystem continue to split on different sidechains. Therefore, this hard fork can be seen as a major upgrade or as a self-rescue for Ethereum.
Regarding the interpretation of overseas regulatory policies in the cryptocurrency industry, Shi Xingguo believes that the attitude of overseas regulatory agencies towards cryptocurrencies has good sustainability and predictability. Except for areas with strict restrictions, most regulations are based on existing financial classifications and regulatory policies, and have positive effect currently. Therefore, regulatory attitudes are unlikely to change dramatically.
Regardless of the final outcome, the news of the merge has boosted the price of ETH, which has risen more than 60% since its decline in June. On August 10th, ETH rose 5.4% to $1941 per coin, the highest level in two months. However, compared with the high point of over $4800 per coin in November last year, there is still a long way to go. Vitalik Buterin has also been attending major forums and conferences, releasing optimistic statements.
Shi Xingguo stated that Vitalik Buterin has given many optimistic indications about the merge, which is a necessary move as a community leader. “Essentially, the community consensus on this merge is far more important than the technical upgrade.”
Link of the full Interview:
https://m.21jingji.com/article/20220815/herald/d9f69c5c57dced219fb79e1fd5e146f1.html