Kiffmeister’s #Fintech Daily Digest (09/06/2020)

Cornering the Ethereum fee market

Amber Group suggests a way to destroy the Ethereum economy. The Ethereum network is fit to burst – 97% of the network is currently used up, and the price of the “Gas” tokens that pay for smart-contract transactions on the network has soared – getting a transaction processed within 30 seconds now costs about $5. Amber Group postulates that a malicious actor could short ETH and then corner the market for Gas tokens and force their price to spiral upwards to the point that the whole Ethereum network collapses along with ETH prices. However, a major risk of this strategy is that software to scale Ethereum, potentially freeing up space on the network, may come out in the next couple of months. 

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