Buterin says Ethereum needs 3 critical transitions to ensure its survival

Ethereum co-founder Vitalik Buterin said that as the Ethereum network matures from a “young experimental tech to a mature tech stack,” three major technical challenges related to Layer 2 scaling, wallet security and privacy will emerge. Said it had to go through a transition.

Buterin said that these transitions must occur “almost at the same time” to ensure success, and if any of them are not met, certain underlying underlying problems can result in network failure. Added that it is expensive.

He issued a statement in the newspaper on June 9. blog post It revealed a new roadmap for layer 1 blockchain networks and also discussed key issues plaguing the future of Ethereum that need to be addressed.

Buterin said:

“It is not just the functionality of the protocol that needs improvement. In some cases, it will require a fairly fundamental change in how we interact with Ethereum, requiring significant changes from applications and wallets.”

Layer 2 scaling

According to Buterin, the Layer 2 rollup solves a significant problem plaguing the Ethereum network: high gas prices. If users don’t adopt the rollup en masse, gas prices will remain unusually high, and in a bull market a single trade can cost him $80 or more.

Even in the current crypto winter, considered by many to be the harshest in history, gas prices for Ethereum transactions are typically around $3. Buterin believes this is unsustainable and the adoption of Layer 2 is the only way to solve it.

Otherwise, users end up with “centralized workarounds” that are more intuitive and cheaper to use.

Wallet security

Buterin believes cryptocurrency wallets are currently falling short when it comes to user experience and security, key issues for the network’s growth.

According to Buterin, if wallet security is not improved, users will never be satisfied with self-managing their assets and will prefer to use centralized options like exchanges.

He also said that interoperability of wallets and networks is important as it enables a more seamless experience for users when using cryptocurrencies for everyday transactions such as grocery shopping.

Buterin said:

“I have coins on my scroll and I want to pay for my coffee. You sell me coffee, but I’m only set up to receive coins on Taiko. What do I do?”

As one way to solve this conundrum, he proposed the concept of a “receiving wallet”. Such wallets will support the majority of layer 2 networks and will be able to consolidate funds asynchronously.

Another option is to develop a cross-L2 bridging system so that the sender’s wallet can automatically transfer funds to the proper destination.

privacy

Another key issue that threatens Ethereum’s success as a go-to network for average users is the lack of privacy regarding individual transactions.

Buterin believes that easily traceable public records of transactions would discourage people from using cryptocurrencies in their daily lives.

He made some suggestions regarding the use of stealth addresses, but admitted that privacy concerns remained a big problem and no easy solution was in sight.