KANALCOIN NEWS – Vitalik Buterin, Co-Founder of Ethereum predicts that Ethereum’s fate will be difficult without these 3 important transitions.
All along, Buterin believed that Ethereum’s success depended on three main technical transitions. Namely Layer-2 scaling, wallet security, and privacy preservation features. Buterin wrote on his personal blog about the Ethereum blockchain failing outright without adequate scaling infrastructure to make transactions cheaper.
“Ethereum failed because each transaction costs US$3.75 (US$82.48 if we experience a price spike), and any product aimed at the mass market eventually forgets about the Ethereum network and adopts a centralized solution for everything,” Buterin wrote.
The blog also explains that the point of failure is also related to the switch to a smart contract wallet. The reason for this is the complexity of the user experience when the user tries to control multiple addresses at once.
Smart contract wallets also need to maintain security. To keep data safe while transitioning to the on-chain world with zero-knowledge rollups. And the transition to privacy must be in the form of identity, reputation, and social restoration which must be continuously improved.
“Without the third, Ethereum is doomed because having all transactions (and POAP, etc) publicly available for anyone to view is too big a privacy sacrifice for many users, and everyone is turning to centralized solutions that at least partially hide your data. ,” he explained again.
And as a solution, Buterin suggests using Stealth addresses or hidden addresses as a solution to this problem. In addition, intense coordination is needed to achieve this involved between them. And this is the challenge that must be faced.
The three transitions make it possible for each user to have more than one address. This is a challenge because the current model is one user for one address only. This will later complicate the transaction.
“If you want to pay someone, how do you get the information to pay them? And If users have multiple assets stored in different places on different blockchains, how do they do key change and social recovery?” Continued the founder of Ethereum.
Therefore, infrastructure development is needed to improve user experience.
Buterin also explained that while challenges remain, achieving scalability, wallet security and privacy for regular users is quite important for the future fate of ETH.
Not only related to technical feasibility. But it’s also about true accessibility for regular users. Buterin also emphasized that these three transitions are still needed to ensure the future fate of Ethereum.
For information only, Ethereum or Ether (ETH) is a crypto asset token. This token can be utilized in peer to peer transactions. Or it can be traded with speculative value. If interested, you can have it through several applications.