Vitalik Buterin: No change Ethereum will collapse
Vitalik Buterin warns: Without three changes, Ethereum will fail. The 29-year-old criticizes the functioning of large parts of the ecosystem. Rapid change must take place in order to keep the blockchain attractive.
Vitalik Buterin: Without these changes, Ethereum will fail
Ethereum inventor Vitalik Buterin recently commented on the blockchain . According to him, it takes three significant changes for ETH not to fail. Failing that, the future of cryptocurrency would look bleak.
In a blog post titled The Three Transitions, Buterin clarifies that not everything is perfect in the Ethereum ecosystem. His contribution is primarily about making the blockchain suitable for the masses, increasing the convenience of use and preventing censorship and control of users.
Therefore, according to Buterin, more users should switch to scaling solutions instead of using the Ethereum mainnet. In addition, wallets should support the new account abstraction , which has been in testing since March, to offer users more options and more security against losing their funds.
The last point deals with the privacy of users. Funds should always be able to be sent privately. New developments on the blockchain are intended to protect users with a high level of confidentiality.
The ecosystem does not have infinite time to wait for these changes. According to Buterin, the best thing to do is to change all three points at the same time.
Buterin declares war on high network fees
Ethereum is known for its low scalability and high network fees. In the bull market in particular, there are always signs of excessively high prices. Unlike the Bitcoin community, Buterin doesn’t think that’s beneficial.
Without the first step, Ethereum fails because each transaction costs $3.75 ($82.48 if we see another bull market) and any product aimed at the mass market is bound to forget about blockchain and introduce centralized workarounds for everything.
The 29-year-old believes that crypto wallets are still largely immature. Poor technical implementations make losses easy in a number of ways. For many people, self-managed wallets are therefore too risky. They prefer to invest their cryptocurrencies on centralized crypto exchanges.
Without the second, Ethereum fails because users don’t like storing their funds (and non-financial assets) and they all gravitate to centralized exchanges.
However, this development destroys the basic idea of digital cash. In addition, new risks arise from the trading platforms. The way out: wallets would finally have to follow higher standards – this also includes account abstraction on Ethereum – or as Buterin writes “smart contract wallets.”
This enables users to make more precise configurations. For example, access to the cryptos can be delegated to another address. Anyone who loses their private key is no longer automatically in a fix.
Transparent blockchains are obsolete
Likewise, more and more users see transparent blockchains as a risk – as an unnecessary risk at that. Buterin is convinced that user data must be better protected. Especially when it comes to potentially critical financial information.
Without the third part, Ethereum fails because the fact that all transactions are publicly available and literally anyone can see them is far too great a privacy sacrifice for many users to move to centralized solutions that keep their data at least one hide little.
The desired change is by no means easy. In some points, fundamental changes in dealing with cryptocurrencies are unavoidable.
