The white paper of Ethereum (ETH) was published in November 2013 by Vitalik Buterin and in 2015 the blockchain saw the light of day. Since then, the network has experienced enormous growth and today it is still the absolute leader among smart contract networks. Despite this, the network of the popular altcoin is far from perfect and has many steps to take to take adoption to the next level.
Buterin argues that there are three critical transitions the network must undergo in order to enjoy a successful future. Into a new one blog post dubbed ‘The Three Transitions’, the founder of Ethereum explains that the leadership in the decentralized world will be jeopardized if the changes are not embraced in the future.
Ethereum scaling solutions
One of the most pressing challenges facing the Ethereum network is exorbitant transaction fees. During periods of high activity, the gas fees enormously, which leads to many irritations within the community leads. Last month, for example, the hype surrounding meme coins like Pepe (PEPE) caused transaction costs to go through the roof. The transaction costs are now at their lowest point in two months, but you still pay about $ 7.50 per transaction.
To solve this problem are layer-2 solutions have been introduced and Buterin emphasizes the importance of the widespread adoption of these scaling networks.
Wallet security and Ethereum privacy
Buterin additionally states that the lack of improved wallet security is a barrier for users to prefer self custody over centralized alternatives such as crypto exchanges.
In his opinion, it is crucial to improve wallet security measures while also providing a user-friendly experience that inspires trust. Buterin also emphasizes the importance of interoperability for wallets between different blockchains.
Finally, Buterin is shocked that the lack of privacy in individual transactions is a major barrier to large-scale adoption of Ethereum. He proposes the use of so-called stealth addresses as a possible solution. This is a wallet address that is cryptographically linked to the public key of the recipient, but that is disclosed only to the parties transacting.
However, Buterin recognizes that finding a comprehensive and practical solution to this issue is a complex challenge.