Despite being a very beneficial and efficient blockchain network, a few qualities of the Ethereum blockchain network affects it in the wrong way. For instance, the increased cost of transactions limits its mass adoptions. This view was shared recently by Vitalik Buterin, the creator of the project. Vitaly Dmitriyevich “Vitalik” Buterin is a Russian- Canadian programmer. He is the co-founder of Ethereum and co-founder of Bitcoin Magazine.
The Chinese Canadian business executive, and the CEO and founder of the world’s leading crypto exchange Binance- ‘Changpeng Zhao’ also shared similar thought n his official Twitter handle yesterday. In his post, he expressed his admiration for Vitalik and Ethereum. Yet at the same time, he emphasized the need for more applications that people can ‘actually’ use. He also touched upon the factors such as ‘speed and capacity’ of the blockchains.
Coming back to Buterin, this week he said that the blockchain is ‘overloaded’ with transactions, therefore, the projects that are thinking of building on the technology will need to be ‘butted out.’ He rather suggested that the emphasis on improving the scalability. This should, according to him. Should solve the pressure in the transaction space. He said-
If you are a bigger organization, the calculus is that if we join, it will not only be more full, but we will be competing with everyone for transaction space. It is already expensive, and it will be even five times more expensive because of us. There is pressure keeping people from joining, but improvements in scalability can do a lot in improving that.
On the other hand, in the near future, the upgrades such as Ethereum 2.0 and the switch to proof-of-stake consensus, are likely to be seen soon. Further, Buterin suggested that PoS can be the potential answer to the problem. The mass adoption of Ethereum is becoming a serious issue. To this issue, Buterin suggested solutions such as- if the transactions verification process gets altered, it can bring down the fess too. The decrease in the fees is estimated to a factor of 100 per transaction. Not only this it can also create more space by freeing it, which further can be highly beneficial for the organizations to develop on the blockchain.
Other factors that are of concern are volatility and cybersecurity. He suggested that the govt. Can help this situation by regulating the space. He said-
Governments do have a role and one of the roles in regulation. The usual concerns are about cryptocurrency exchanges where the basic idea is to do fundraising for a new project by directly selling tokens on the blockchains. There are debates whether specific kinds of ICOs [initial coin offerings] are legally categorized as securities.
A few days ago, the co-founder of Ethereum said that the scalability is a “big bottleneck” when it comes to the free adoption of the cryptocurrencies. The scalability has become a main issue, in Buterin’s view, because ETH blockchain is almost full. He further added that the future of crypto could massively benefit from ‘hybrid solutions.’ He is open if this will involve both the Ethereum (ETH) and Bitcoin (BTC.) Last month, he was found suggesting the use of Bitcoin Cash (BCH) blockchain as a solution for the time being for scalability for the Ethereum network.
This shows a lot of open-mindedness of Buterin’s part and a strong sense of integrity over the general personal business-oriented competition in the market. For instance, he is open about the proposal to implement the Bitcoin Lightning Network as ‘an interface for Ethereum contracts.’ His vision for achieving faster and instant payment system and efficient crypto space promises reliable solutions to come in the future.