Vitalik Buterin, a co-founder of Ethereum, is of the opinion that for Ethereum to be successful, three major technical “transitions” must occur almost simultaneously: layer-2 scaling, wallet security, and privacy-preserving features.
In a June 9 post on his personal blog, Buterin pointed out that the Ethereum blockchain will not work properly without the necessary scaling infrastructure to make transactions inexpensive.
He asserted that Ethereum is unsuccessful because each transaction costs $3.75 (which would be $82.48 if there is another bull run), and every product that is intended for the general public eventually overlooks the blockchain and opts for centralized alternatives for all aspects.
Buterin also identifies smart contract wallets as a potential source of malfunction.
He stated that the transition to smart contract wallets has caused some difficulties due to the complexity of the user experience when users manage multiple addresses simultaneously.
In addition to wallets safeguarding crypto assets, Buterin elucidated that wallets would need to protect data in order to completely transition into an on-chain world with zero-knowledge rollups.
Privacy will need to be addressed through the development of better identity, reputation, and social recovery systems.
He stated that, without the third party, Ethereum would not be successful because the requirement for all transactions (and POAPs, etc) to be made public for anyone to view is too great a privacy trade-off for many users, leading them to gravitate towards centralized solutions which offer some degree of data concealment.
The co-founder of Ethereum proposed that stealth addresses could be used to address this problem.
Vitalik Buterin discloses 3 ‘enormous’ prospects for cryptocurrency in 2023.
Buterin stated that attaining all three objectives would be “challenging” due to the “intensive coordination” necessary between them.
He acknowledged that all three changes weaken the “one user – one address” system, potentially making it more difficult to conduct transactions.
“If you need to make a payment to someone, what details do you need in order to do so?”
He inquired, “How can users manage key changes and social recovery if they have multiple assets stored in various locations on different blockchains?”
Buterin emphasized the importance of creating infrastructure that will ultimately enhance the user experience.
Polygon Miden founder claims that ZK-rollups are “the endgame” for scaling blockchains.
Subscribe to our email newsletter to get the latest posts delivered right to your email.