But the argument is that the grandparent comment is making is that you should build your application on the ethereum network, eth is the “oil” of this machine, and the more people who use it the higher the value of eth is.
So if I make a game, or an uber for dog walkers, or a global shipping service, or some SaaS app on the ethereum blockchain, then my customers will have to pay more or less (or my costs will be higher or lower) depending on how active the network is.
That makes no sense. Day to day price and gas fee fluctuations make it hard to long term plan. Just saying that if you want price stability use a stablecoin doesn’t address that issue because we are not building the app on the blockchain of the stablecoin. There isn’t an eth stable coin that is always 1 blip to 1 eth exchange rate.
> or a global shipping service, or some SaaS app on the ethereum blockchain, then my customers will have to pay more or less (or my costs will be higher or lower) depending on how active the network is.
Only if you want to have these applications fully running on the base layer, which is frankly nonsense.
To give you one practical example: Storj can provide a object storage service at AWS scale, and its pricing has nothing to do network activity and the price of storage does not change based on the amount of transactions per minute. Unless you want to be paid in real-time and account for every byte that you are storing and transmitting, there is no need to put all of the business logic in the blockchain.
I don't agree with this, but also think you're arguing a different point.
My point was that prices being "stable" isn't actually what's desirable, prices being nonvolatile is.
> So if I make a game, or an uber for dog walkers, or a global shipping service
I mean this is exactly how many of these things work. Uber pricing fluctuates based on demand. So do global shipping prices in many cases. So do game prices on Steam.
Even if the price was the same in the currency you're using (say USD), the value of USD is constantly changing.
> and the more people who use it the higher the value of eth is.
And I'm not sure how this follows. The more people who purchase ETH, the higher the value is.
But using the ethereum network doesn't require you to transact in ETH, only that you pay for the transaction fee (the network cost that makes it possible to to store and execute your transaction essentially) in ETH
So if I make a game, or an uber for dog walkers, or a global shipping service, or some SaaS app on the ethereum blockchain, then my customers will have to pay more or less (or my costs will be higher or lower) depending on how active the network is.
That makes no sense. Day to day price and gas fee fluctuations make it hard to long term plan. Just saying that if you want price stability use a stablecoin doesn’t address that issue because we are not building the app on the blockchain of the stablecoin. There isn’t an eth stable coin that is always 1 blip to 1 eth exchange rate.