Briefing on Vitalik Buterin’s long-term vision for the Ethereum Blockchain

If you spend any time online, you’ve undoubtedly heard of Ethereum. Just as a reminder, Ethereum (ETH) is a decentralized blockchain platform. It can be used by anyone to create digital technology. Software developers are able to build applications in finance, advertising, identity management, gaming and web browsing, to name a few. Ether is the cryptocurrency that powers the network – it makes it work. Like Bitcoin, Ether can be used for payments. There are so many companies that accept ETH, so you can use Ethereum anywhere. Ethereum provides real value.

Ethereum is often described as the world’s computer

Ethereum helps create a decentralized computer, enabling smart contracts and DApps. Smart contracts are special types of programs that run when predetermined conditions are met. They operate based on an if, then logic. The apps run according to the given instructions, so there is no chance of latency, limitation, deception or interference from third parties. DApps, also called decentralized applications, exist on the peer-to-peer network of computers. More often than not, they are accessible through traditional browsers such as Google Chrome and Firefox.

Unlike Bitcoin, which has a limited scripting language, ETH runs on Solidity, which creates machine-level code and incorporates it into the Ethereum Virtual Machine. It is similar to C++ and quite easy to learn. The Ethereum blockchain is capable of executing code of unparalleled complexity. Ethereum 1.0 was an attempt to build a world computer. Ethereum 2.0 will be the world computer. It could subvert the functions of the Internet as we know it. What is certain is that the “merger” will make a difference when it comes to the Ethereum ecosystem (and more than that).

As highlighted by its creator, Ethereum is at a critical inflection point for change

At the time of its launch, Ethereum was one of the most formidable projects in the crypto space. Vitalik Buterin and his supporters wanted to change how the Internet works. Many claim that Ethereum is the Internet’s next step. Ethereum 2.0, the upgrade to the blockchain network, will improve the speed, efficiency and scalability of the network. ETH will be used by more and more people. However, the transition to the Ethereum 2.0 world has been slow. Despite this, adoption is still growing. Compared to other cryptocurrencies, the transaction volume is higher.

For now, the priority is to address the restrictions on work permits. The platform is moving to the proof-of-stake consensus mechanism, which promises to use less energy (about 99% less) and help reach 100,000 transactions per second. Validators are selected based on the number of tokens they hold. Those who spend money on coins are practically investing in the continued success of the network. Validators cannot break the system, as proof-of-stake has checks and balances in place to prevent this from happening.

There is so much traffic on the Ethereum blockchain and this congestion can result in high transaction fees. The solution to this problem is simple: layer-2 chains. Chains like Polygon carry out more transactions per second with lower gas fees. Speaking of which, Polygon is the most widely used layer-2 solution for ETH. It processes transactions outside the mainnet, which explains the increased throughput. In case you didn’t know, Ethereum’s layer-2 solutions fall under several categories, namely channels, plasma, sidechains, rollups, and validium. Many of them are undergoing research, testing and implementation.

As highlighted by Vitalik Buterin, Ethereum will soon enough run on a full node with lighter hardware. A single piece of client software will be enough to run a full node. When a transaction is added to the blockchain network, the full node validates the transaction and makes sure it conforms to the Ethereum specification. The full node prunes the blockchain to save disk space. Thus, full nodes do not save data back to genesis. Most laptops qualify to be full nodes. The more nodes that exist, the more unlikely it is for a cyber attack to succeed.

Ethereum will have quantum resistance on its roadmap

Cryptocurrencies achieve decentralized security and trust. Cryptography is the mainstay of cryptocurrency processing. Encrypted information transmitted with an algorithm can be deciphered by a quantum computer, allowing threat actors to intercept that information. Quantum-resistant cryptography can protect data from threats down the road. Vitalik Buterin looks ahead into the future and plans to upgrade the Ethereum platform for quantum resistance. It is believed that it is several years before ETH will experience a threat to its current cryptographic signatures, but it is better to be safe than sorry.

Ethereum won’t hide from quantum computers, so don’t rush to sell your Ether just yet. Try to imagine what it will be in the future. Wise investors do not sell their coins. Rather the opposite, actually. They extract liquidity from exchanges like Binance, which has a positive effect on the Ethereum price. Coming back to the topic, competitions are constantly being held for researchers to standardize new cryptographic protocols that protect against quantum attackers. Better protocols are needed to improve zero-knowledge evidence. The Ethereum Virtual Machine generates zero-knowledge proofs to guarantee the correctness of programs. ZPK systems can be post-quantum secure.

Final considerations

Given the current and planned improvements to the Ethereum blockchain, Ethereum may well become the dominant chain in terms of transaction volumes. As the platform increases efficiency, it can work together with multi-chain technologies. The emergence of a highly competitive ecosystem will enable ETH to expand its capacity and produce remarkable results. One will not replace the other, that’s for sure. Down the line, there will be more vertically focused blockchains for specific use cases, including healthcare and gaming.

All in all, Ethereum is working to solve its problems. As businesses are funded via Ether, an ever-increasing number of people will become familiar with the digital asset. Startups that have raised money through an ICO will end up surviving in the long term and help promote the mainstream adoption of cryptocurrencies. We’ll just have to wait and see what the future holds for ETH. Good things don’t come easily.