Vitalik Buterin: Ethereum must adopt ‘three transitions’ to succeed

Buterin also says it will be necessary to build cross-chain solutions of layer-2 blockchains

article-image

VictorWard/Shutterstock modified by Blockworks

share

As one of the largest blockchain ecosystems continues to grow, Ethereum co-founder Vitalik Buterin notes that it will be necessary to adopt the “three transitions” for Ethereum to be sustainable in the long term. 

These transitions, as Buterin explains in his latest blog post are: layer-2 scaling, wallet security and privacy. 

“It’s not just features of the protocol that need to improve; in some cases, the way that we interact with Ethereum needs to change pretty fundamentally, requiring deep changes from applications and wallets,” Buterin wrote.

Buterin explains that it will be necessary to build cross-chain solutions of layer-2 blockchains, drawing on examples of how it is difficult now for users to have only one address with the multiple different scaling solutions that exist on top of Ethereum today. 

“In an L2 scaling world, users are going to exist on lots of L2s. Are you a member of ExampleDAO, which lives on Optimism? Then you have an account on Optimism! Are you holding a CDP in a stablecoin system on ZkSync? Then you have an account on ZkSync… The days of a user having only one address will be gone,” he said.

This must be achieved at the same time as the further development of smart contract wallets and privacy.

Blockchain solutions are beginning to look more alike

These three transitions are not completely new to the blockchain ecosystem at large, and definitely not unique to Etheruem. 

Cross-chain solutions that can help different networks communicate with one another, for example, has been explored in depth by the Cosmos ecosystem — a network of individual layer-1 app chains. 

In an interview with Blockworks, Dougie DeLuca, an investor at Figment Capital, noted that rollup ecosystems are beginning to resemble Cosmos in a lot of ways.

“There’s conversations right now about how blockchain design is just going to be commoditized, and they’re going to look kind of similar. This is honestly the earliest sign of this that I’ve seen, where the Cosmos has proliferated the idea of app chains. And rollups right now are moving more and more towards app specific rollups, which is similar to an app chain,” DeLuca said.

Cosmos layer-1 blockchains, for example, communicate with each other through an inter-blockchain communication protocol (IBC). A more Ethereum-native solution to resolving the interoperability between layer-2s would be Connext, a team building out chain abstraction.

Loading Tweet..

Similarly, with smart contract wallets, Etheruem is designing account abstraction solutions that will enable users to have self custody over their own wallets. In Cosmos, this is currently being explored by Authz.

Although fundamentally different, the end goal is similar. 

“I think it would be great for the Cosmos and rollup teams to work closely together…Ethereum has been focusing on one set of problems for a long time, and Cosmos another set. If we combine our knowledge, I think we actually have a pretty great solution that we can work towards,” DeLuca said.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. What you can expect: And more! Don’t miss out on the opportunity to be in the room when the future of crypto is decided. Join us and help shape the future of our […]

recent research

Research report - cover graphics-2.jpg

Research

Base has doubled-down on its commitment to the Superchain vision, has shown early signs of success with nearly $400M in TVL, and has become home to novel dapps such as friend.tech which has seen significant traction.

article-image

The bitcoin halving slated for April 2024 — an event expected to spur upward price action for BTC — could be a boon for Block’s stock price, analysts say

article-image

Seed Club founder Jess Sloss is excited to “open the doors and let other people see what we’ve been seeing for the last few months”

article-image

Blockchain is a “natural fit” in games based on open economies and user-generated content, says Wyatt

article-image

Their current stance is a half-baked attempt that could stifle innovation and burden an emerging industry

article-image

Maker’s DeFi-focused “subDAO” passed a proposal activating a lending market for DAI on the Gnosis Chain

article-image

Certain creditors could be repaid sooner, with one hedge fund exec telling Blockworks it expects a payout by the end of the year