Ethereum founder names 2 biggest problems of the crypto network

Since Ethereum (ETH) made the transition to a Proof of use System regularly raises concerns about the decentralization of the network. Most of the validation node are in the hands of a relatively small group of companies. During Korea Blockchain Week, Ethereum co-founder Vitalik Buterin shared plans for a possible future solution. This is reported by the American crypto news platform Cointelegraph.

Process ETH transactions on your phone

Buterin believes that future Ethereum updates will allow working validator nodes to run on mobile devices. This would help decentralize the network and increase scalability.

“The long-term plan is to introduce fully verified Ethereum nodes that you can literally use on your phone.”

Said Buterin at the conference in Korea. Validator nodes are processors that process Ethereum transactions. Without these nodes, the network would not function. These nodes are kept running by staking Ethereum.

However, a select group of companies own a very large portion of all Ethereum staked. Lido Finance is the largest of these with over 30 percent of all Ethereum used. Another big player is the crypto exchange Coinbase.

Currently, running a validator node is quite laborious. For example, you need to secure at least 32 ETH and you need at least 2 terabytes of digital storage and 16 gigabytes of RAM. While this is certainly not impossible for small gamers, the centralization of staked Ethereum remains a pressing issue.

Ethereum’s biggest problem

Buterin is even more worried about another issue: Ethereum’s scalability issue. According to him, improving scalability is a top priority. This is the number of transactions the network can handle. Currently, the Ethereum network processes less than 20 transactions per second. Compared to networks like Solana (SOL) or the Layer 2 solution Polygon (MATIC), this is very little.

According to Buterin, there is still a lot of catching up to do here. Possible solutions include: roll ups, zero-knowledge evidence And shards. The developers are currently researching these solutions. Scalability is expected to improve with the next major update.

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here