‎‎‎According to prominent on-chain analyst Willy Woo, Ethereum encourages innovation despite the number of scams on the network.

In a new interview, Woo to say Fraudulent activity on Ethereum is nothing new as it also took place in the early days of the internet.

“I think it’s the ‘hot spot’ of innovation. The inverted view of Maxis would say that it is a breeding ground for fraud and Ponzi schemes. It has helped many teams to create projects very easily and raise a lot of money with very sketchy services to turn a profit. I think that’s the downside.

If you go back to the 1990’s of the web world, there was a famous elevator advertisement. In 30 seconds on an elevator ride you can make millions of dollars to support your idea. It’s very similar to what happened in 2017 with a white paper stating:

“Here’s the idea, let’s put it on a white paper and put tens, hundreds of millions of dollars into it.”

Just like valuable companies that emerged from the dot-com bubble, there are innovative Ethereum projects, he says.

“We see it as a fraud “hotspot” in the bitcoin world, but if we look to the web world, Amazon.com and some major startups have built critical infrastructure for the world. I think that has value on Ethereum. Of the 10,000 coins out there, a large chunk is on the Ethereum network. While many of them are complete crap, there are some really cool innovations.”

Wu said the leading smart contract platform has its drawbacks in terms of security and scalability, but it offers a learning experience that enables developers to build better networks.

“We’ve learned a lot from that, and so now there are competing networks in the smart contract space trying different things, be it scalability and multiple protections from those who aren’t, the outcry as if you have to write financial code be built much more sturdily.

I consider Ethereum to be a very successful experimental platform. We built some really cool stuff on it. The sheer amount of interaction puts pressure on scalability, but we’ve learned some amazing lessons.”

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