Vitalik Buterin, the co-founder of Ethereum (CRYPTO: ETH), has underscored the importance of three vital transitions for ETH to secure its future position.
In a recent blog post, Buterin said that Ethereum must achieve scalability, wallet security, and privacy.
“As Ethereum transitions from a young experimental technology into a mature tech stack that is capable of actually bringing an open, global and permissionless experience to average users, there are three major technical transitions that the stack needs to undergo, which are layer-2 scaling transition, wallet security transition, and the privacy transition,” he wrote on the blog.
Buterin said that the project would potentially fail due to high transaction costs that would force products to opt for centralized solutions if ETH doesn’t achieve scaling.
The crypto pioneer also pointed to the need to shift towards using smart contract wallets in Ethereum for enhanced security, as traditional wallet models could lead to asset loss, prompting users to use centralized exchanges; smart contract wallets can mitigate this by offering added features like social recovery.
“It is not just about technical feasibility but actual accessibility for regular users. We need to rise to meet this challenge,” he added.
He also highlighted the need to provide privacy-preserving transactions and services on Ethereum. Without privacy measures, users’ transaction data is publicly available, which is an undesirable scenario for many users and could drive them towards centralized solutions that offer some data privacy.
Buterin had earlier emphasized the importance of simplicity and efficiency and stated that an overloaded system could lead to increased complexity, security risks, and slower innovation.
At the time of writing on Sunday, Ethereum was trading at $1,749, down by 8% in the last seven days.
Produced in association with Benzinga
Edited by Saba Fatima and Newsdesk Manager
