Ethereum co-founder highlights three key transitions set to shape network’s future trajectory
- Ethereum co-founder has revealed three key technical transitions the network must undergo in its evolution.
- The three transitions will radically reshape the relationship between users and addresses, Vitalik Buterin.
- The transitions are hard to implement because it is challenging to coordinate and properly resolve them.
Ethereum (ETH) co-founder Vitalik Buterin has indicated three transitions critical for the network that would bode well in ushering the ecosystem from a young experimental technology into a mature tech stack that is capable of actually bringing an open, global and permissionless experience to average users.
Also Read: Ethereum price declines as Coinbase ETH liquidity staking platform sees mass withdrawals
Ethereum co-founder highlights three crucial transitions key for network development
Ethereum (ETH) has indicated three major technical transitions that the stack needs to undergo roughly simultaneously, citing the Layer-2 (L2) scaling transition, the wallet security transition, and the privacy transition.
Buterin states that each tree transition plays a role but requires serious coordination. Nevertheless, the Russo-Canadian acknowledges their role in radically reshaping the relationship between users and addresses.
Among the most important challenges that the Ethereum network faces is scalability. All along its popularity journey, the network suffered network congestion demand for transactions increased. With it, there were high fees, limiting its usability. Vitalik Buterin advocates for transitioning to rollups and switching to L2 scaling solutions to solve this limitation.
He also draws users’ attention to wallet security transition, with a special interest in smart contract wallets. In his opinion, smart contract wallets increase user confidence in their assets’ security. Therefore, the network could fail in its absence because users are skeptical about saving their funds. Such a move would see everyone opt for centralized exchanges (CEXs). In his opinion, therefore, this transition underscores the need for greater security and user experience.
Finally, he underscores the importance of privacy as the third transition, acknowledging the relevance of privacy-centric features within the Ethereum network. In particular, he draws attention to transactions, highlighting the need for developing requisite tools like social recovery, identity, and reputation systems.
Ethereum co-founder acknowledges the difficulty of transitions
Nevertheless, Buterin acknowledges that transitions are often challenging, saying:
Achieving scalability, security, and privacy improvements on Ethereum requires more than just protocol upgrades.
Cognizant of the challenges that face new projects, the blockchain entrepreneur said that coordination between every stakeholder in the Ethereum community would be pivotal to the successful implementation of these transitions. Notably, this includes developers, miners, users, and application builders.
Further, he states that moving to these new solutions demands education and motivation among users so that they are open to the changes, and rightfully so, considering users must feel confident about the changes before adopting them.