Ethereum co-founder Vitalik Buterin said that the Ethereum network needs to go through three major technical transitions related to Layer 2 scaling, wallet security, and privacy as it matures from a “young experimental technology to a stack.” of mature technology.
Buterin added that these transitions need to run “more or less simultaneously” to guarantee success and if any of them fail, the network is likely to fail due to certain fundamental issues that will arise as a consequence.
He made the statement on June 9. blog post that revealed a new roadmap for the Layer-1 blockchain network, where he also discussed critical issues plaguing the future of Ethereum that need to be addressed.
buterin said:
“It’s not just the protocol features that need improvement; In some cases, the way we interact with Ethereum needs to change in quite fundamental ways, requiring deep changes to apps and wallets.”
Layer 2 scaling
According to Buterin, Layer 2 rollups solve a critical problem plaguing the Ethereum network: high gas fees. If users don’t embrace hoarding en masse, gas fees will remain absurdly high, with a single transaction potentially costing upwards of $80 during a bull run.
Even in the current crypto winter, considered by many to be the harshest ever, gas fees for Ethereum transactions are typically around $3. Buterin believes that this is untenable and the adoption of Layer-2 is the only way to solve it.
If you don’t, users will ultimately resort to “centralized workarounds” that are more intuitive and cheaper to use.
wallet security
Buterin believes that crypto wallets are falling short when it comes to user experience and security, which is a critical issue for the growth of the network.
According to Buterin, if the security of the wallet is not improved, users will never feel comfortable with self-custody of assets and will prefer to resort to centralized options such as exchanges.
He also said that the interoperability of wallets and networks is important, as it allows for a more seamless experience for users when it comes to using cryptocurrency in everyday transactions, such as buying groceries.
buterin said:
“I have coins in Scroll and I want to pay for coffee. You are selling me the coffee, but you are only set to receive coins in Taiko. To do?
He suggested the concept of a “receiving wallet” as a way to solve this puzzle. Such a wallet would support the vast majority of Layer 2 networks and could consolidate funds asynchronously.
Another option would be to develop an L2 cross-bridge system so that senders’ wallets can automatically send funds to the correct destination.
Privacy
Another key issue threatening Ethereum’s success in becoming the go-to network for the average user is the lack of privacy when it comes to individual transactions.
Buterin believes that people would loathe using cryptocurrencies in their daily lives if there was a public record of their transactions that could be easily traced.
He made several suggestions about using hidden addresses, but conceded that privacy-related issues remain a major issue with no easy solution in sight.
