The cryptocurrency community is closely watching all the developments taking place in the Ethereum ecosystem. Over the last year, Ethereum developers have been rigorously working on improving the network scalability and reducing congestion.
As per the ongoing schedule, the launch of Ethereum 2.0 is likely to take place in early January 2020. During his interview with the Canadian publication The Star, Ethereum co-founder Vitalik Buterin spoke on the future developments and events.
Buterin said that his team plans to cut down the crypto transaction costs by a factor of 100 by improving the scalability. He also added that this is crucial as the Ethereum network has now bigger “much bigger than Bitcoin“.
Unlike Bitcoin blockchain network, which facilitates only BTC transactions, the Ethereum network can offer other opportunities as well. It hosts a range of decentralized applications (DApps) and smart contracts targeting multiple different industries apart from finance.
Scalability Is the Key to Growth
Buterin said that the major challenge faced by the crypto industry is overcoming the scalability issues. He further added that upgrading scalability will give a massive boost to crypto adoption. Speaking to The Star, Buterin said:
“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.”
Buterin also added that under the existing Ethereum framework, each computer in the network needs to verify every transaction. This slows down the overall execution speed and performance. He says that with some minor sacrifices in security, developers can reduce the network congestion wherein every node verifies only a smart part of the transaction.
In addition to scalability, Buterin also mentions other factors like improvements in account security, usability and privacy, to steer ahead mass adoption.
Growing Awareness for Blockchain
Buterin appreciated the rise in public awareness for blockchain. He added:
“Five years ago, the blockchain was just about bitcoin, but now it’s much bigger than just bitcoin. It’s split off into separate spaces that have a lot of different visions”.
Buterin also added that regulators have a crucial role to play in promoting the mass integration for blockchain. He added that he has been personally speaking to different governments and big organizations. Moreover, Buterin mentioned that he is surprised enough that regulators are “increasingly warming up to public chains.”