And not a new problem
Ethereum has been making rapid advances on its technical front recently. However, two factors – high transaction fees and scalability concerns have always been a considerable obstacle. However, Vitalik Buterin, creator of Ethereum, did not attribute the aforementioned concerns to the technology. At a recent conference, he said:
“One of the biggest problems I found in our project is not the technical problems, it’s the people-related problems.”
Vitalik Buterin further reinforced that Ethereum was in a better economic position now compared to when it was launched. Ethereum’s migration from the PoW consensus engine to the PoS protocol has kept the alt in the news for the past few months. Commenting more on Ethereum 2.0, the executive said:
“Actually, we call it Ethereum 2.0 a little less because we want to emphasize that, it doesn’t mean throwing away the existing Ethereum platform and making a whole new one. It’s kind of a much more incremental set of changes.”
However, Charles Hoskinson of Cardano shared a contrary perspective and stated that Ethereum 2.0 would end killing Ethereum 1.0.
Furthermore, fragmentation and rollups would independently help to increase the scalability of Ethereum’s network. Highlighting the same, Buterin confirmed that the scalability of the network would be able to meet the expectations of large-scale companies in the near future. Buterin stated:
“There are a lot of other things that people are building in the Ethereum space, but the blockchain’s ability to handle all transactions is having a hard time keeping up with demand, and that’s exactly why all these things we’re working on on the tech side with scalability and proof of participation are very important.”
Ethereum’s scalability concerns, unsurprisingly, have given way to the emergence and adoption of a number of new blockchains, including Binance Smart Chain, Solana, Polkadot and Cardano. However, according to Buterin, these newer chains were compromising decentralization.
He further stated that the aforementioned projects were not a threat to Ethereum, but actually these networks would face a challenge from Ethereum. Elucidate why the executive stated that the Ethereum network is “quickly improving”. Highlighting the same, he said:
“In the long run, the challenge for these types of platforms is that Ethereum itself is getting better, and there are also these layer two protocols on top of Ethereum that are getting better quickly.”