The etherealethereum-staking-momentum-falling-whats-going-on/” rel=”nofollow”> block chain It stands out for its smart contract functionality and several other things. However, many may not be familiar with the challenges facing the network. In a recent interview, the founder of ethereum, Vitalik Buterinrevealed the greatest of all.
ethereum‘s biggest challenge
Talking with ethereum-founder-on-us-crypto-crackdown.html” rel=”nofollow”>CNBCButerin mentioned that the biggest challenge facing the “ethereum ecosystem” is ensuring that it builds products that provide value to its users. According to him, the last decade was a trial, but now ethereum needs to provide utility.
ethereum is known to host some of the biggest decentralized applications (dApps), including prominent decentralized exchanges (DEXs) like Uniswap, Curved Financeand Sushiswap. The network has also grown tremendously to the point that several ethereum layer 2 networks have emerged in an attempt to scale the network.
Despite this, it appears that Buterin believes there is more to do, even as ethereum has asserted itself as the preferred option. grid for dApps and other decentralized solutions. Meanwhile, ethits native token, it is the second largest cryptocurrency by market capitalization.
Buterin also spoke about how cryptocurrencies are enjoying increased use in less developed countries as people use crypto tokens to make payments and save.
Cryptocurrencies have long been touted as a hedge against inflation, and it appears they are being used where they are needed most. A recent report from crypto-adoption-index/” rel=”nofollow”>Chain analysis showed that the top-ranked countries in cryptocurrency adoption are plagued by a devaluing fiat currency.
The ethereum founder also stated that centralized entities like Binance must take a backseat for cryptocurrency adoption to move forward. While he appreciates the role of these entities in the growth of the cryptocurrency industry, he believes that cryptocurrencies need to become more decentralized.
His reason for saying this is not far-fetched, as he noted that these entities are vulnerable “both to pressure from outside and corruption of themselves.” Indeed, centralized entities have taken a lot of hits in the past year, which has had far-reaching consequences on the industry.
Last year, one of the largest crypto exchanges, ftx, collapsed, which had several ripple effects on the crypto industry and market. Meanwhile, the two largest crypto exchanges by trading volume, binanceand Coinbaseare currently embroiled in legal battles against the SEC.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/09/Ethereum-Founder-Vitalik-Buterin-Reveals-Network-Challenges" alt="Tradingview.com ethereum Price Chart (Vitalik Buterin)” width=”2884″ height=”1746″ loading=”lazy”/>
eth price sits at $1,578 | Source: ETHUSD on Tradingview.com
The future of ethereum
Last year, ethereum moved from a proof-of-work consensus mechanism to proof-of-stake following the Bind. Buterin stated that this measure has made the network more decentralized, as it is “more difficult to shut down” than a proof-of-work network.
He also banished the idea that the network was heavily dependent on him, which many had identified as a weakness, as the government could easily come after him to clamp down on the network.
Related reading: What the drop in spot and derivatives volumes means for the price of bitcoin
According to him, ethereum has grown to become independent of him and the ethereum Foundation. He points out how several independent applications on the blockchain have taken the workload off of it and made the network more autonomous.
Regarding ethereum‘s future plans and projects, he said that the network focuses on privacy and scaling with the help of zero-knowledge (ZK) rollups. ZK Rollups are Layer 2 scaling solutions that help scale the ethereum network by moving computing off-chain, thereby reducing the computing workload on the network. It also promotes privacy, since transactions can be verified without knowing what they are about.
Featured image from Bloomberg, chart from Tradingview.com
