According to the co-founder of Ethereum Vitalik Buterin, the growth of fees for transactions in the Ethereum blockchain is hurting the speed of mass distribution of the network.
In an interview with Toronto Star, Buterin suggested that projects that are considering whether to use Ethereum are likely to abandon this idea, as the blockchain is overloaded with transactions and is at the limit of its capabilities.
Buterin’s comments indicate his understanding of the difficulties that the project will face in light of the planned major updates, for example, Ethereum 2.0 and the transition to Proof-of-Stake (PoS). Buterin said:
“If you are a large organization, then if you want to join the network you need to consider that you have to compete with everyone for a place for transactions. This is already expensive, and will be five times more expensive when large players appear. Therefore, large firms do not want to work on the network. However, addressing the scalability of Ethereum can significantly improve the situation. ”
Currently, the average weekly fee for transactions in the network has reached its minimum for 50 days, starting to decline from July 1, and at the moment it is about 0.11 ETH per transaction.
Buterin presented the transition to PoS as a potential solution to the problem, saying that changing the transaction verification process could reduce the size of the commission by 100 times, making room for organizations that would like to use the blockchain.
Discussing the management and distribution of the network, Buterin also noted that price volatility and cybersecurity remain the main problems of Ethereum.
Recall that in July of this year, Vitalik Buterin proposed temporarily using the Bitcoin Cash blockchain to process data and solve the scalability problem of the Ethereum core network.