Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Vitalik Buterin Reveals Biggest Ethereum Challenge Now

Published 05/23/2024, 04:45 PM
Updated 05/23/2024, 08:15 PM
©  Reuters Vitalik Buterin Reveals Biggest Ethereum Challenge Now

U.Today - Vitalik Buterin has recently shared his thoughts on the current biggest challenge for Ethereum. Despite advancements in scaling territory, Ethereum still has a lot to cover in order to become a better network from the viewpoint of users.

There are two main approaches to scaling: layer-1 sharding and layer-2 solutions, like rollups. Both methods can be broken down into simple "we are handling more transactions." The underlying tech is similar, as both of them use ZK-SNARKs to verify transactions on the network and Data Availability Sampling for data availability. The key difference there is in managing and implementation.

When using rollups like ZK-SNARKs in a sharded blockchain, they become an integral part of a protocol. What does that mean? Ethereum's core technology remains the same, but how it is applied varies. However, it raises additional challenges, especially when your goal is to coordinate and stabilize the network consisting of dozens of L2s.

The key issues? Layer transferring. Moving tokens between various L2s is a pain right now and pushes users into using various bridges that might not be as safe as they seem. With standardization of cross-chain interactions, we will see a more stable and safer environment, says Buterin.

Yet another challenge is validation across completely different layers that utilize different validation techniques. When relying on centralized Remote Procedure Calls, L2s create complications even for lighter clients with faster and more decentralized validation.

Coordination is an additional issue. Smooth interaction between different layers and maintaining a unified, secure network is the main priority. Buterin believes that addressing coordination challenges head-on will be key to Ethereum's success in the future.

This content was originally published on U.Today

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.