It is a well-known fact that Ethereum’s gas fees are crippling the ecosystem. Numerous projects are forced to either migrate or shut down altogether. UniLogin has run out of gas to give, and will no longer be maintained.
What is UniLogin Again?
On paper, the UniLogin solution has a lot of merits. Building a new Universal Login standard for Ethereum could have unlocked tremendous potential. Not only will it onboard new users much easier, but it also makes accessing every aspect more straightforward. All of this would be done through the user’s browsers directly.
Considering the recent rise of DeFi, DEXes, and other projects, a Universal Login standard would be more than welcome. Unfortunately, the UniLogin team has decided to pull the plug on this venture. The current gas problems on Ethereum have forced the team to put their efforts elsewhere.
Other contributing factors to this decision include the team’s original assumptions. Taking the industry by storm through a browser-based login solution has proven to be impossible. Browsers simply don’t serve well to store low-value secrets.
Secondly, the scaling of Ethereum has proven to be far more problematic than assumed. Although the UniLogin team had a plan to leverage layer-two solutions, gas fees make it impossible. Every new user requires a multisig wallet, ENS name, and so forth. High gas fees take their toll on all of these aspects.
As a result of high fees, onboarding new users could cost up to $130 per person. An unsustainable business model, and one that forces tough decisions. It is unlikely this will be the last time such high fees pose issues for Ethereum.
What to do now?
For the UniLogin team, it is better to call it quits now. Finding new sources of revenue will be virtually impossible, primarily due to COVID-19. Putting the project to bed now is the best option for all parties involved. There’s no point in going the DeFi route or doing anything that can upset investors.
Making inroads in the cryptocurrency space will seemingly require a very different approach. Some of the team members will begin working on Ethworks. The lack of transaction fee scaling on Ethereum claims another prominent victim. It will certainly not be the last.