The numbers are in: Ethereum's transaction volume is booming, hitting levels we haven't seen since the peak of the 2021 bull run. Daily number of transactions jumped 100% to 1.45 million! Amidst the excitement over DeFi and potential profits, a crucial question remains: Who actually benefits from this surge, and at what cost? Have we as a society become so dazzled by the glittering baubles of innovation that we have lost sight of the obscuring darkness they may introduce?
Are the Marginalized Forgotten Again?
Let's talk about Amahle. Ezweni is a small entrepreneurial business run by the women of an indigenous village in rural KwaZulu-Natal, South Africa. Amahle dreams of one day sharing her beautiful creations with a global audience. She’s invigorated by the possibilities of NFTs and decentralized marketplaces to get her closer to that goal. The reality? Minting and selling her work on Ethereum would cost thousands in gas fees. These expenses would devour most of her possible income. For Amahle, this transaction explosion is not an avenue to economic freedom, it’s an obstacle. She’s shut out of the “future of finance.”
This isn't just Amahle's story. Millions of people including many on this very panel in the developing world are still trying to get access to better and more reliable internet and more affordable technology as well. Under even developed nations, access is a luxury—not a guarantee. We’re all for the incredibly strong macro bullish narrative of Ethereum. Is it really good for democracy overall, or just good for the folks who already exercise a disproportionate amount of power?
Digital Divide: A Growing Chasm?
We’ve all heard the lofty proclamations about how blockchain can democratize money and give power to the unbanked. Let’s not kid ourselves, the digital divide is a yawning chasm that would love to crater those promises.
The recent boom in Ethereum transactions has been exacerbating this gap. Wealthy investors and tech companies are making all the money from this increased activity. In the same time period, marginalized communities are experiencing further exclusion from the digital economy. It is ironic that the very technology that promises decentralization often reinforces existing power structures. It's like building a bridge to the future, but only charging a toll that the poor can't afford.
- Limited Access: Many communities lack basic internet infrastructure and affordable devices. How can they participate in a decentralized revolution if they can't even connect?
- Digital Literacy: Understanding blockchain technology requires a certain level of digital literacy. Without proper education and training, many are left behind, vulnerable to scams and exploitation.
- Cost Barriers: High transaction fees, like those plaguing Ethereum, create a significant barrier to entry for those with limited resources.
And what about the environmental consequences? The energy consumption on the blockchain—including eco-friendly Ethereum 2—continues to be incompatible with any sustainable climate goals. Are we really prepared to trade in the health of our planet just so corporations can have speedier transactions and more money?
The Real Cost of "Progress"?
Think about it: the increased activity on the Ethereum network requires massive amounts of energy, contributing to carbon emissions and exacerbating climate change. This disenfranchisement disproportionately impacts the communities most vulnerable to environmental harms, who are already carrying the burdens of environmental racism. The irony is deafening: we're building a decentralized future on a foundation that could undermine the very communities we claim to be empowering.
We can’t overlook the risk of exploitation. The Ethereum ecosystem is growing every day. Unfortunately, this new crypto boom brings a greater risk of scams, Ponzi schemes, and financial manipulation that prey on vulnerable people. Under the current lax regulatory framework, these communities are playing with fire. Unscrupulous actors can easily exploit their ignorance and inexperience for profit. Anxiety should be high!
Investors need to be cautious of the stochastic oscillator’s “death cross” – it might indicate the onset of a bearish trend. The true death cross is being inflicted on the people — victims, survivors, their loved ones— left behind by our frenzied technological advance.
It's not too late to change course. We cannot allow the distractions of hype to take our attention off the work at hand that will allow us to build a more inclusive, sustainable Ethereum ecosystem. Here are a few concrete steps we can take:
A Call for Inclusive Solutions
Let's not allow the Ethereum transaction boom to become another example of technological advancement that benefits the few at the expense of the many. Together, let’s bend the arc toward making sure everybody can enjoy the full fruits of this advancement. Working together, we can create a decentralized, inclusive future where everybody benefits! That “bullish narrative” must include all of us, not just the upper crust. We can no longer ignore the voices of the voiceless to pave a prosperous future for us all—together.
- Invest in Digital Literacy: Support initiatives that provide digital literacy training to marginalized communities, empowering them to participate in the digital economy safely and effectively.
- Promote Affordable Access: Advocate for policies that expand access to affordable internet connectivity and technology for all.
- Develop Sustainable Solutions: Support the development of more energy-efficient blockchain technologies and promote responsible environmental practices within the Ethereum ecosystem.
- Support Layer-2 Solutions: Actively use and promote Layer-2 scaling solutions to reduce gas fees and make Ethereum more accessible to everyone.
- Community Driven Initiatives: Support and participate in community-driven initiatives that aim to bridge the digital divide and empower marginalized communities.
Let's not allow the Ethereum transaction boom to become another example of technological advancement that benefits the few at the expense of the many. Let's work together to ensure that the benefits of this technology are shared more equitably, creating a truly decentralized and inclusive future for all. The "bullish narrative" needs to include everyone, not just the privileged few. It's time to listen to the forgotten voices and build a better future, together.
