Vitalik Buterin: Ethereum Needs Layer-2 Scaling, Wallet Security & Privacy13. June 2023
• Ethereum co-founder Vitalik Buterin believes the success of Ethereum will come down to three major technical “transitions” that need to happen almost simultaneously.
• These transitions include layer-2 scaling, wallet security and privacy-preserving features.
• Without these implementations, Ethereum will not be able to reach its full potential.
Ethereum’s Future Depends on Three Transitions
Ethereum co-founder Vitalik Buterin believes the success of Ethereum depends on three major technical “transitions” that need to happen almost simultaneously – layer-2 scaling, wallet security and privacy-preserving features. According to Buterin, if these three transitions are not implemented, it could mean the end of Ethereum as we know it today.
Layer 2 Scaling
Buterin explained that the current cost of transactions on the Ethereum blockchain is too expensive for mass adoption and without sufficient scaling infrastructure, transactions would remain costly. He added that smart contract wallets have caused some issues because of complexities from a user experience perspective when users take control of multiple addresses at once. Therefore, improvements must be made in order for transactions to become cheaper and more efficient.
In addition to protecting crypto assets, wallets would need to secure data in order for a transition into an on-chain world with zero-knowledge rollups (ZK). Without improved security measures such as stealth addresses, users’ private data may remain vulnerable.
The last transition mentioned by Buterin relates to privacy which requires improved identity, reputation and social recovery systems in order for users’ data not to be exposed publicly which can compromise their identities or lead them open fraud attacks from malicious actors.
Overall, Buterin emphasized how challenging it will be for all three transitions mentioned above due to intense coordination needed between teams; however he also noted that achieving these goals are essential for Ethereum’s future successs and adoption rate as a platform for decentralized applications (Dapps).