By Solomon Odunayo
Vitalik Buterin, the co-creator of Ethereum (ETH), has stated that Ethereum will bring scalability and help open the door to more decentralized applications (Dapps) and enterprise use cases. He also discussed the importance of building diverse, open-source communities.
Buterin said this while speaking at a fireside chat with Brian Behlendorf, the executive director of Hyperledger, an open-source joint effort hosted by The Linux Foundation, designed to advance cross-industry blockchain technologies.
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Vitalik Buterin noted:
“Our vision in Ethereum has always been to be this platform that’s open to all these different applications where the limit is just your creativity. But if in practice, just the economics make it so it’s only viable to do a few things, then in some ways that’s a big limitation on how much of our mission we could actually accomplish.”
Due to the vast growth of decentralized finance (DeFi) on the Ethereum network, the cost of using the blockchain has skyrocketed and scalability has become a pressing issue.
Admitting these issues with the Ethereum network, Buterin said, “Right now, transaction fees are high… it prices out users.”
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In the course of the Hyperledger fireside chat, Buterin stated that layer 2 solutions such as roll-ups have also come to the fore.
Buterin said:
“So sharing times a hundred, rollups times a hundred, the two multiplied times ten thousand. And the hope is that you can simultaneously make the platform able to handle more users and reduce transaction fees.
Speaking about building public blockchains for enterprises with very minimal transaction fees, Vitalik Buterin said:
“We should have an ecosystem where the enterprises and everyone, they can just all live together and the ecosystems can kind of plug into each other and benefit each other much more.
“But the challenge is that if you want anyone to be building on the public chain then, the transaction fees have to go down and then also privacy issues have to be solved. And that’s like the other benefit… you have all of these very diverse, different groups just building and working on this technology and everyone can just use each other’s stuff ideally. So I’m optimistic about that future.”
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Regarding the much-anticipated transition of Ethereum from proof of work (PoW) to proof of stake (PoS) consensus algorithm, Buterin stated that it’s a big motivation that the upgrade will reduce the resource requirements of Ethereum by more than 1000x.
Buterin said, “It’s good for the Ethereum community and good for the users, good for the world, it’s always great when things line up that way.”
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