Last week in San Francisco, Ethereum founder Vitalik Buterin shared his thoughts on the future of blockchain with Jason Hsu. The talk was hosted by the Blockchain at Berkeley student-led organization.
Vitalik Buterin – ideas about blockchain
Vitalik Buterin is highly regarded in the industry, perhaps one of the most revered of all the names in cryptocurrency development. He believes that the ecosystem is gradually transitioning from proof of work toward better alternatives. According to Buterin, one of the biggest issues facing DLT at present is the hype versus the potential use cases –
“The amount of sustainable usage of blockchain is very low. Although it exists, there are a lot of people giving value to cryptocurrencies, yet the amount of useful stuff happening is still much lower than the $200 billion market cap makes it seem. The main challenge for the industry as I see it is basically understanding how to bridge that gap and get to a point where there is $200 billion in some sense of actual final value being generated.”
Another issue raised by Buterin is that there is no real way to maintain privacy on the blockchain, aside from using privacy-based coins such as Zcash, or else using third-party solutions. Additionally, governments should be working on regulations to make it easy for people to make smart purchases in cryptocurrency. Interestingly, the crypto he used for his example was Bitcoin Cash, a direct bitcoin competitor –
“I want to be able to walk into a convenience store, get a card and pay a small fee to start using Bitcoin Cash. Allowing people to use small amounts of cryptocurrency for everyday use is valuable within crypto, and also particularly for use cases of blockchain that go beyond crypto.”
How is Ethereum progressing?
Ethereum is currently working on its scalability problems through its sharding solution and is also working on its Casper upgrade. Casper is a proof of stake system overlying the existing proof of work system. Casper is separate from the main chain, and a combination of Casper and sharding will scale the chain to the theoretical maximum, according to Buterin.
In a new paper released by Buterin, he describes another kind of consensus mechanism, where only 1% of the nodes are required to remain honest to prevent the dreaded 51% attack. While he is looking into this, he has stated that it is unsuited as a primary consensus mechanism right now.
Vitalik Buterin stated back in October 2017 that over 90% of ICO projects would fail over the long term. Judging by the ICO success score, he was largely correct. Vitalik Buterin has also stated that centralized exchanges should burn in hell.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.