Ethereum cryptocurrency developer names 3 scenarios for project development

The co-founder of Ethereum has published a post about three «major technical innovations» that are necessary to guarantee the success of the second largest cryptocurrency network.

Vitalik Buterin said that the developers continue to work on scaling ETH, as it is necessary to improve the security of cryptocurrency wallets and improve the operation of privacy tools. If this is not done, the stability of Ethereum could be undermined.

Buterin noted that scalability has improved significantly in recent years thanks to second-tier networks. However, most of the transactions still take place on the basis of the main project network. Accordingly, second-tier solutions need to evolve and attract developers. Otherwise, Buterin believes that the second cryptocurrency network will face a significant increase in fees, which will push users to use other networks.

«Without scaling, Ethereum will lose, because each transaction costs $ 3.75 and can rise to $ 82 in the event of a new bullish trend. And, of course, every project that strives for mass adoption will simply forget about the blockchain, using more centralized solutions,» Buterin complains.

It is also necessary to improve the security of cryptocurrency wallets, because if users cannot store assets easily and safely, they will simply not use such a solution. One possible option would be to use wallets with social asset recovery features (when several users can join together to recover assets on a hacked wallet). Finally, Buterin called for further development of privacy features, such as adding support for «hidden addresses.»