Vitalik Reveals Future Plans for Ethereum
Ethereum is switching to Proof-of-Stake to reduce transaction costs while focusing on sharding to increase the amount of data per block. At the Blockchain futurist conference, Vitalik provides insight into the future of Ethereum.
Benefits of Proof-of-Stake
Vitalik Buterin has announced the vision for Ethereum once its merger and transition to Proof-of-Stake (POS) is complete.
The CEO and co-founder of the Ethereum network was speaking at a Blockchain futurist conference, and he said that the switch to proof-of-stake is just a step into the many possibilities that will soon happen in the technology.
During his keynote speech, he stressed the importance of making Blockchain cheaper to allow more people access to the network. Buterin shared a graphic that showed the median income of four selected countries compared to the current ETH transaction fees. For example, a daily wage in Canada, Mongolia, and Zambia stands at $113, $16, and $4, respectively, whereas the gas fee for a transaction on the Ethereum network may cost as much as $20.
"If we're talking about blockchains being this global thing that's supposed to empower people who are not empowered today in underprivileged countries, you can see how it starts looking less viable. We're talking about single transactions potentially taking up people's entire daily income."
For those who don't want a switch to POS, Buterin said prizes might go overboard once the Crypto market returns to the bullish trend. Buterin assures stakeholders that transaction fees could be as low as $0.002 to $0.05 if technical upgrades are made alongside the switch.
Scalability and Sharding
After Ethereum does the switch, the company will work on a crucial aspect - Scalability. Sharding is a long-term ambition of Vitalik, and it will increase the capacity of Ethereum to hold large amounts of data in smaller spaces.
He also talked about the idea that web2 companies' centralization is no longer needed, stressing that smart contracts can personalize user experience and ensure decision-making is left to the owners.