- June 9, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Ethereum co-founder Vitalik Buterin said the Ethereum network needs to go through three major technical transitions related to Layer-2 scaling, wallet security, and privacy as it matures from a “young experimental technology into a mature tech stack.”
Buterin added that these transitions must be executed “roughly simultaneously” to ensure success and if any of them fall short, then the network will likely fail due to certain fundamental issues that will arise as a consequence.
He made the statement in a June 9 blog post that revealed a new roadmap for the Layer-1 blockchain network, where he also discussed the critical issues plaguing Ethereum’s future that need to be addressed.
Buterin said:
“It’s not just features of the protocol that need to improve; in some cases, the way that we interact with Ethereum needs to change pretty fundamentally, requiring deep changes from applications and wallets.”
Layer-2 scaling
According to Buterin, Layer-2 rollups solve a critical issue plaguing the Ethereum network — high gas fees. If users don’t adopt rollups en masse, then gas fees will remain absurdly high, with a single transaction potentially costing more than $80 during a bull run.
Even in the current crypto winter — considered by many to be the harshest in history — gas fees for Ethereum transactions are usually around $3. Buterin believes this is unsustainable and Layer-2 adoption is the only way to solve it.
Failure to do so will ultimately result in users turning to “centralized workarounds” that will be more intuitive and cheaper to use.
Wallet security
Buterin believes that crypto wallets are not up to par currently when it comes to user experience and security, which is a critical issue for the growth of the network.
According to Buterin, if wallet security is not improved, then users will never feel comfortable with the self-custody of assets and will prefer to turn to centralized options like exchanges.
He also said that the interoperability of wallets and networks is important as it enables a more seamless experience for users when it comes to using cryptocurrency in day-to-day transactions like buying groceries.
Buterin said:
“I have coins on Scroll, and I want to pay for coffee. You are selling me the coffee, but you are only set up to receive coins on Taiko. Wat do?”
He suggested the concept of a “receiving wallet” as one way to solve this conundrum. Such a wallet would support the vast majority of Layer-2 networks and would be able to consolidate funds asynchronously.
Another option would be to develop cross-L2 bridging system so senders’ wallets are able to automatically send funds to the right destination.
Privacy
Another key issue that threatens Ethereum’s success in becoming the go-to network for the average user is the lack of privacy when it comes to individual transactions.
Buterin believes that people would loathe using crypto in their daily lives if there is a public record of their transactions that is easily traceable to them.
He made several suggestions around using stealth addresses but admitted that issues around privacy remain a major problem with no easy solution in sight.
The post Buterin says Ethereum needs 3 critical transitions to ensure its survival appeared first on CryptoSlate.
