Recently, Ethereum’s founder and one of the most prominent personalities in the crypto ecosystem gave an interview to The Star in which he spoke about the future of Ethereum.
When asked about the biggest bottleneck in the process of adoption of cryptos, Buterin replied by saying:
“Scalability is a big bottleneck because the Ethereum blockchain is almost full. If you’re a bigger organization, the calculus is that if we join, it will not only be more full but we will be competing with everyone for transaction space. It’s already expensive and it will be even five times more expensive because of us. There is pressure keeping people from joining, but improvements in scalability can do a lot in improving that.”
When asked about how the issue of scalability can be solved, Buterin replied by saying that the biggest hurdle with the current blockchain is this idea that every computer has to verify every transaction. If it becomes possible to move to networks where every computer on average verifies only a small portion of transactions then scalability becomes easier.
Buterin even suggests that solving the scalability problems can bring down the costs by a factor of 100 for every transaction. While acknowledging the risks associated with cryptos, Buterin says that there are ways to shield from these chaotic up and down. He adds:
“It’s important to remember that there are ways to use and benefit from the blockchain that don’t expose you to those risks. If, for example, you are using blockchain to identify certifications, you only need enough cryptocurrency to pay transaction fees, basically a couple of dollars.”
While talking about governments and regulations, he states:
“Governments do have a role and one of the roles in regulation. The usual concerns are about cryptocurrency exchanges where the basic idea is to do fundraising for a new project by directly selling tokens on the blockchains. There are debates whether specific kinds of ICOs [initial coin offerings] are legally categorized as securities.”