- Ethereum’s co-founder, Vitalik Buterin, underlines three key technical “transitions” necessary for Ethereum’s success: layer-2 scaling, wallet security, and privacy-preserving features.
- Failure to adequately address these areas, according to Buterin, could drive users toward centralized solutions, undermining Ethereum’s value proposition.
Vitalik Buterin, Ethereum’s co-founder, recently elucidated three indispensable technical “transitions” required to safeguard Ethereum’s future: layer-2 scaling, wallet security, and privacy-preserving features. His views were communicated via his personal blog post on June 9.
Buterin unequivocally stated that without substantial scaling infrastructure that ensures affordable transactions, Ethereum “fails.” The crippling effects of exorbitant transaction costs, which he estimated at $3.75 ($82.48 during a bull run), could lead products aimed at the mass market to abandon the blockchain in favor of centralized workarounds.
Highlighting the next critical transition, Buterin delved into the complexities introduced by smart contract wallets. This wallet type, while innovative, can complicate user experiences when individuals manage multiple addresses simultaneously.
In a world moving toward on-chain systems through zero-knowledge rollups, wallets, according to Buterin, need to evolve beyond securing crypto assets to safeguarding data as well.
Lastly, Buterin flagged privacy as the third crucial transition. He argued that the current public visibility of all transactions and other on-chain activities, such as Proof of Attendance Protocols (POAPs), can deter users due to excessive privacy sacrifices. This might drive individuals to centralized solutions that offer a semblance of data protection. Buterin proposed implementing stealth addresses to tackle this challenge.
Buterin acknowledged that accomplishing these three transitions would prove to be an intricate task due to the required “intense coordination.” Each transition disrupts the “one user — one address” model, which could potentially disrupt traditional transaction operations. For instance, difficulties might arise in acquiring information to pay someone or managing assets stored across different chains.
Concluding his insights, Buterin emphasized the need to construct infrastructure that enhances the user experience. He stated that achieving scalability, wallet security, and privacy for regular users is vital for Ethereum’s future. This endeavor is not just a technical task but a necessity to ensure Ethereum’s accessibility to everyday users.