In a recent statement, Ethereum co-founder Vitalik Buterin highlighted three crucial “transitions” that are necessary for Ethereum to succeed. According to Buterin, these transitions revolve around layer-2 scaling, wallet security, and privacy-preserving features.
Buterin argues that without adequate scaling infrastructure to lower transaction costs, the Ethereum blockchain will fail. He points out that each transaction currently costs $3.75, which could rise to $82.48 during another bull run. To avoid this failure, a robust scaling solution is needed to make Ethereum more accessible to the mass market.
Wallet security is another area of concern for Buterin. He believes that the switch to smart contract wallets has made it difficult for consumers to have the same address across Ethereum and different layer-2s. Key changes can also lead to illogical consequences and potential wallet ownership changes. Buterin suggests that securing data in addition to cryptographic assets will be crucial in transitioning to an on-chain world with zero-knowledge rollups.
The third transition is related to privacy. Buterin argues that making all transactions publicly visible compromises user privacy and leads to users adopting centralized solutions. He proposes the use of stealth addresses to address this concern. New identification, reputation, and social recovery mechanisms will also be required to ensure privacy in Ethereum.
Buterin acknowledges that achieving these three transitions will be challenging due to the difficult coordination required. He also notes that these changes may complicate the traditional “one user – one address” approach and raises questions about how to transmit payment information and make key modifications across multiple chains.
In conclusion, Buterin underscores the importance of creating infrastructure that enhances user experience and ensures the future success of Ethereum. He emphasizes that technical viability alone is not enough, and actual accessibility for common consumers is crucial. By addressing these three transitions, Ethereum can overcome its potential failures and continue to thrive in the cryptocurrency market.
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