Ethereum’s co-founder Vitalik Buterin recently revealed some crucial elements that need to happen to make the Ethereum network more successful than its peers. According to the developer, the Ethereum network needs more scaling, and for this to happen, three significant technical changes must be applied to this network.
Ethereum Needs Further Scaling
In a recent post on his blog, the co-founder noted that the Ethereum blockchain would only reach its potential with an adequate scaling system which will cut down transaction fees. In his expert analysis, Buterin asserts that Ethereum’s journey to its full potential hinges upon the seamless implementation of three technical “transitions,” which are —layer-2 scaling, robust wallet security, and cutting-edge privacy features.
Further expressing his thoughts, Buterin highlights Ethereum’s stumbling block, pointing out the negative impact of high transaction fees that soars to $3.75 per transaction (or a staggering $82.48 during a potential bull run). Additionally, he revealed a common pitfall faced by products targeting widespread adoption—the tendency to overlook the inherent constraints of the Ethereum blockchain.
Hence, there is usually the need to create centralized workarounds to address these issues. Buterin pinpoints smart contract wallets as another potential stumbling block. Delving into details, he disclosed how adopting smart contract wallets had introduced its fair share of challenges.
Specifically, the co-founder noted that complications arise from the user experience standpoint when individuals take control of multiple addresses simultaneously. Expanding on wallet security, Buterin emphasized the importance of safeguarding crypto assets and data to facilitate a complete transition towards an on-chain ecosystem characterized by zero-knowledge rollups.
The Ethereum CEO further said that wallets must effectively secure data, boosting the foundation for a seamless and privacy-enhanced on-chain ecosystem. Buterin’s final transition revolves around privacy enhancements, which he believes will spur advancements in identity and social recovery systems.
In his opinion, the absence of robust privacy measures renders Ethereum vulnerable to failure. Exposing all transactions and Proof-of-Attendance-Protocol (POAP) records to public scrutiny poses a significant privacy concern, preventing more users from fully embracing the Ethereum ecosystem.
The Challenges
Meanwhile, the Ethereum co-founder acknowledges the difficulty in achieving all three transitions, stating that the process requires intricate coordination. He openly concedes that each of these transitions undermines the traditional “one user — one address” model, which introduces complexities into transaction executions.
While recognizing the potential complications that may arise, Buterin highlights the importance of addressing these challenges to pave the way for a more robust and efficient Ethereum ecosystem. According to him, users will find it difficult to initiate transfers due to the prevalent challenges because recipients’ data will be hard to access.
Furthermore, he added that if crypto holders have many assets in the custody of differing platforms, carrying out fundamental changes and social recovery will be too complex. Accordingly, the Ethereum co-founder suggested that developers should build features that effectively improve user experience.
Despite the drawbacks, Buterin believes that achieving scalability, user privacy, and wallet security will be critical for the future of Ethereum’s blockchain. He concluded that it is not about adding more technical features.
Instead, it is about making these features readily accessible and useful to everyday users, and that’s how the blockchain can reach its full potential..
