Even though we’ve highlighted some of the criticisms directed toward Ethereum before, they are not the only issues the network has to address. It is disappointing to see such a prominent ecosystem hindered by technical issues, ideological decisions which can easily backfire, and other factors which may eventually spell disaster for Ethereum. Below are some of the downsides of which Ethereum users and investors alike should be aware.

4. CRYPTOCURRENCY ICOS ARE A RISK

Even though virtually every company or project looking to raise money wishes to conduct an Ethereum-based ICO, these crowdsales can have negative repercussions. A lot of these projects will eventually liquidate the amount of ETH raised and dump it all on the market. Not only will this affect the Ether price negatively, but it also shows Ethereum is merely a facilitator to raise funds, rather than technology in which these companies believe.

It is solely a matter of your time till the flow of cryptocurrency ICOs backfires on the Ethereum scheme. there's no guarantee that any of those comes have legitimate intentions, and any dangerous PR can mechanically taint Ethereum’s name additional. whereas it's true that Ether permits individuals from everywhere the globe to speculate in ICOs, there's ne'er a guarantee for fulfillment .

3. EXPLOITS AND WEAKNESSES

Even though several firms have joined the Ethereum Enterprise Alliance, they're not essentially attentive to the problems this network has. we've got seen 2 major exploits discovered and used, each of that resulted in huge amounts of funds being purloined. the primary exploit was the DAO good contract bug, and also the second exploit showed however Ethereum has no secure multisignature pocketbook resolution presently. Immature technology typically suffers from problems like these.

2. NO SUPPLY CAP

Contrary to what some individuals could assume, there's no official onerous cap on the quantity of ETH. whereas proof-of-work are going to be replaced by proof-of-stake within the future, Ethereum can still be inflationary as a result. in contrast to Bitcoin, with its twenty one million onerous cap, Ethereum has no fastened most offer. this suggests the worth of each individual ETH lowers each time a brand new coin is brought into circulation. during this regard, Ethereum is kind of kind of like decree currencies, even supposing its level of inflation is considerably lower.

1. NOT AN IMMUTABLE BLOCKCHAIN

The main point of Ethereum is however it provides blockchain technology and new options to the complete world. one amongst the first aspects of employing a blockchain is that this ledger creates associate undisputed record of events which may not be altered once the data has been accepted and confirmed by the remainder of the network. that's not the case for Ethereum, and it's shocking however few individuals acknowledge this vital detail.

Ethereum’s developers introduced a tough fork once the DAO was hacked. This hack place an oversized quantity of the on the market ETH provide in danger of falling into the incorrect hands. The exhausting fork additionally removed the unchangeableness facet of the Ethereum blockchain. this implies that any application or project engineered on prime of the Ethereum blockchain might see a part of its history or transactions drained if an identical incident were to occur. individuals probing for the changeless Ethereum blockchain ought to investigate Ethereum Classic, that was maintained as associate philosophical opposition to the present blockchain rollback.