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In a recent blog post, Ethereum co-founder Vitalik Buterin has unveiled a roadmap consisting of three significant technical transitions that he believes are vital for ensuring the long-term success and sustainability of the Ethereum blockchain.
Three must-implement transitions
Buterin emphasises that these transitions, namely Layer 2 scaling, wallet security enhancement, and privacy measures, are essential in maintaining Ethereum's decentralised nature and for guaranteeing open and unrestricted access for all users.
Failure to implement these transitions, warns Buterin, could potentially undermine Ethereum's viability as a robust and widely adopted platform.
Layer 2 scaling
The first transition focuses on scaling Layer 2 solutions. Over the past few years, Ethereum has witnessed the emergence of a Layer 2 ecosystem comprising solutions like Optimistic Rollup and Zero Knowledge-Rollup, which have effectively reduced transaction costs. However, as the majority of activities still occur on the main Ethereum network, further maturation and scaling of the Layer 2 space are necessary.
Buterin highlights the potential consequences of neglecting Layer 2 scaling, including skyrocketing transaction fees during market expansion phases or bullish market trends. Such circumstances may lead users to seek centralised alternatives, posing a threat to Ethereum's decentralisation goals.
"The absence of the first transition, Layer 2 scaling, would render Ethereum vulnerable, with each transaction costing $3.75 ($82.48 during a bullish market). This would inevitably drive mass-market products to disregard the Ethereum chain and adopt centralized workarounds," Buterin explained.
The second transition highlighted by Buterin centres around wallet security. Buterin expresses concern that potential security risks may discourage users from storing their funds and non-financial assets on the Ethereum network, driving them towards centralised exchanges as a safer alternative.
"Without the second transition, wallet security, Ethereum's success is compromised as users become hesitant to store their funds securely. This could result in a mass migration towards centralized exchanges," warns Buterin.
To enhance wallet security, Buterin proposes a shift towards smart contract wallets with advanced features such as social recovery, similar to the concept of account abstraction. These enhanced wallets would offer improved security measures and an enhanced user experience.
The third and final transition emphasised by Buterin is privacy. He cautions that the absence of robust data privacy measures may discourage users from utilising Ethereum's capabilities fully. To address this concern, Buterin suggests the implementation of stealth address protocols, which would provide privacy features for Ethereum users.
By integrating stealth address protocols, Ethereum would be able to offer enhanced privacy options, attracting users who value anonymity and data protection.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.