The ‘Ethereum is a security’ debate has been going on for a while. With the move to proof-of-stake from proof-of-work closer than ever, the thinking and thinking surrounding these has increased dramatically over the past few weeks. It has started to gain more attention as several notable figures in the crypto community advocate Ethereum as a security and founder Vitalik Buterin has now taken to Twitter to address that.
Buterin attacks back
Vitalik Buterin has responded to those who continue to say that Ethereum is a security. This school of thought arose from the fact that Ethereum is now moving to a new proof-of-concept mechanism, and many individuals have argued that this makes digital assets a security. One of these is a Twitter user and Bitcoin advocate. Nick Payton on Twitter. According to Payton, the fact that network users can vote to change proof of stake makes it a security.
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This clearly hit the nerve with founder Buterin, who lashed out at Payton. In one quote tweets, the Ethereum founder explained that believing the network’s move to a proof-of-stake mechanism means users can vote on protocol parameters is a “bold lie”. He explains that inactive proof of stake is different from proof of work in that respect, saying, “The nodes reject invalid blocks, in PoS and in PoW. It’s not difficult.”
ETH price maintaining above $1,000 | Source: ETHUSD on TradingView.com
In the other tweet, the founder of Ethereum also corrected some grammatical usage that might have led to confusion. “When we talk about things like proof of stock, we don’t say ‘it’s a security,’ we say ‘it’s safe,'” says Buterin, referring to words commonly used to describe securities. switch to proof of stake. “I know these suffixes are difficult, so I forgive the mistake,” he concluded.
But is Ethereum a security?
Mostly the debate over whether Ethereum is a security has been going on in Bitcoin-maximum-density circles. However, their support of bitcoin does not mean that their stance on Ethereum as a security has not been taken seriously and is attracting support from crypto investors.
Aside from the move to proof-of-stake which is supposed to give users the right to vote on protocol parameters after the merger, there is also the fact that Ethereum had an ICO when it first launched. It was not very popular at the time but a lot of people got involved in the digital ICO for the first time in 2014. As a result, many believe that Ethereum qualifies as a security.
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Another prominent figure in the space that has joined is MicroStrategy’s CEO, Michael Saylor. According to Saylor, Ethereum can be classified as a security for a number of things. “It was issued through an ICO [initial coin launch],” said the CEO. “There is a management team. There is a mine before. There is a hard fork. There are continuous junctions. There is a difficult bomb that continues to be repelled. “
“Since it’s a commodity there can’t be an issuer, and the truth is you can’t really make a decision. One of the fundamental insights in the crypto industry is that you can change it is what makes it a security,” Saylor added.
Featured image from Bloomberg, charts from TradingView.com
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