Vitalik Buterin on 3 Crucial Shifts for Ethereum's Future Success
Vitalik Buterin, the founder of Ethereum, has recently shared his insights on the roadmap and three critical shifts needed for the Ethereum network to thrive in the future.
Vitalik Buterin on 3 Crucial Shifts for Ethereum's Future Success
According to Vitalik Buterin, three key changes are essential: scaling Layer-2, enhancing crypto wallet security, and ensuring privacy. Buterin believes that if any of these improvements are not implemented, users will be unable to fully leverage a decentralized and secure network.
The Three Transitions:https://t.co/rtewRnm2wK
— vitalik.eth (@VitalikButerin) June 9, 2023
Layer-2 Scaling
Regarding Layer-2 scaling, Ethereum has seen significant developments around Optimistic Rollups and ZK-Rollups. Buterin warns that without Layer-2 solutions, the network may face scenarios where transaction fees spike dramatically during rare events, pushing users toward more centralized alternatives.
"But without Layer-2, Ethereum will fail because each transaction could cost around $3.75 (or $82.48 during another bull run). Consequently, widely adopted applications will abandon the network in favor of more centralized, temporary solutions," Buterin emphasized.
Crypto Wallet Security
In his blog, Vitalik also addressed the risks associated with asset storage, which could deter users from choosing Ethereum as their crypto wallet platform. Instead, users might turn to centralized exchanges (CEXs).
"Without secure crypto wallets, Ethereum will fail because users won’t feel safe storing their assets, leading them to migrate to CEXs," Buterin stated.
He proposed transitioning wallets to a smart contract model, incorporating advanced features such as Social Recovery and Account Abstraction. According to Buterin, Social Recovery wallets are crucial for improving both user experience and security.
See more: Social Recovery Wallet – The Standard for an “Optimal” Crypto Wallet
Privacy Concerns
The final issue Buterin highlighted is privacy. He mentioned that without a specific privacy standard for user data, Ethereum could fail. Previously, Buterin proposed the Stealth Address solution to provide privacy for Ethereum users' transaction data.
