Ethereum co-founder Vitalik Buterin said the Ethereum network needs to go through three major technical transitions related to Layer 2 scaling, wallet security and privacy as it goes from a “young experimental technology to a mature technology stack”.
Buterin added that these transitions must be executed “roughly simultaneously” to ensure success and if any of them fail, the network will likely fail due to some fundamental issues that will result.
He made this statement on June 9 blog post who 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.
“It’s not just the functionality of the protocol that needs to be improved; in some cases, the way we interact with Ethereum needs to change quite fundamentally, 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 rollups en masse, gas fees will remain absurdly high, with a single transaction potentially costing upwards of $80 on a bull run.
Even in the current crypto winter – considered by many to be the harshest in history – gas fees for Ethereum transactions are typically around $3. Buterin believes this is unsustainable and adopting Layer 2 is the only way to fix it.
If you don’t, users will eventually turn to “one-stop workarounds” which will be more intuitive and cheaper to use.
Buterin believes that crypto wallets currently fall short when it comes to user experience and security, which is a critical issue for network growth.
According to Buterin, if wallet security is not improved, users will never feel comfortable with self-custody of assets and will instead turn to centralized options like exchanges.
He also said that wallet and network interoperability is important because it allows for a more seamless experience for users when it comes to using cryptocurrency in day-to-day transactions like purchasing e-commerce products. grocery store.
“I have coins on Scroll and I want to pay for a coffee. You sell me the coffee, but you are only configured to receive coins on Taiko. What to do?”
He suggested the concept of the “receiver wallet” as a way to solve this conundrum. Such a wallet would support the vast majority of Layer 2 networks and be able to consolidate funds asynchronously.
Another option would be to develop an inter-L2 bridging system so that sender wallets can automatically send funds to the correct destination.
Another key issue that threatens 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 thinks people would hate to use crypto in their daily lives if there was an easily traceable public record of their transactions.
He made several suggestions regarding the use of stealth addresses, but admitted that privacy issues remain a major issue with no easy solution in sight.