The co-founder of Ethereum claims that layer-2 scaling, wallet security, and privacy-preserving features are all important to ensure the future of Ethereum.
Layer-2 scaling, wallet security, and privacy-preserving features are, according to Ethereum co-founder Vitalik Buterin, three important technical “transitions” that must occur simultaneously for Ethereum to succeed.
Buterin explained that the Ethereum blockchain “failed” outright due to the absence of sufficient scaling infrastructure to lower transaction fees in a post on his personal blog on June 9.
“Ethereum is failing because each transaction costs $3.75 ($82.48 if we have another bull run), and any product aimed at the mass market will inevitably forget chains and adopt a centralized solution for everything,” he claims.
Buterin claims that wallet security issues with respect to smart contract wallets are another area of failure.
According to him, switching to smart contract wallets has made it difficult for consumers to get the same address on Ethereum and different layer-2s.
Buterin stated that neither the layer-2 equivalent Ethereum Virtual Machine (EVM) nor:
“Even when hash equivalence is possible, potential wallet ownership changes as key changes create other illogical consequences.”
To effectively transition into the on-chain world with zero-knowledge rollup, Buterin says wallets need to secure data in addition to cryptographic assets:
“However, in the ZK world, this is no longer true: the wallet stores your data in addition to protecting authentication credentials.”
For the third and final shift, privacy, new identification, reputation and social recovery mechanisms will be required.
Without a third one, he claims, “Ethereum failed because making all transactions (and POAPs, etc.) publicly visible for anyone to view was too high a privacy sacrifice for many users, and everyone turned to a centralized solution that at least hid proprietary you data.”
One of the founders of Ethereum proposed using stealth addresses to solve this problem.
Buterin claimed that because “intense coordination” was required to complete all three, it would be “challenging” to do so.
He acknowledged that the three changes “weakened” the “one user — one address” approach, which can complicate the way transactions are carried out.
“How do you get information on how to pay someone if you want?”
How will users perform key modifications and engage in social recovery if they have multiple assets stored across multiple chains? he continued.
In his final remarks, Buterin stressed the need to create an infrastructure that ultimately enhances the user experience:
“Despite the hardships, scaling, wallet security and normal user privacy are very important for the future of Ethereum. Technical feasibility is important, but actual accessibility for the general consumer is just as important. To face this challenge, we must rise.
Post Without these three important “transitions”, Ethereum “failed”, according to Vitalik Buterin first appearing on BTC Wires.