In light of Ethereum’s recent soaring transaction fees, Vitalik Buterin urged users of Ethereum to turn to scale solutions that are already applicable.
Buterin took the opportunity to address this when speaking at the opening speech of the CoinDesk Investment Virtual event. He confirmed his enthusiasm for Layer 2 scaling solutions such as “roll-ups”. This means keeping transaction data in the chain and at the same time taking the computational effort off the chain.
Ethereum’s roadmap to expanding the blockchain base layer through sharding technology appears to have taken several years. However, Buterin said the top priority is for users to start supporting roll-ups.
The explosive growth of DeFi (Decentralized Finance) platforms running on Ethereum has seen transaction fees rise in recent months. Transaction fees rose from 8 cents at the beginning of this year to a high of around $14 in September.
Buterin did not elaborate on when Ethereum will switch to Proof of Stake (PoS). However, he stated that phase 0 “will take place soon“, which includes an independent beacon chain as a test site.
The operator of the Zinken test network recently announced that after a test in mid-October, a chain of beacons would be started in about six weeks.
Vitalik Buterin: ETH Supply will Decrease After Proof-of-Stake
Looking at the PoS, Buterin said that as long as stakeholders are online at least 50%-60% of the time, they will see a net profit. The more coins invested, the higher the expected resources and complexity. This is because, for example, a stakeholder of 10,000 ETH participates in more parts of the chain than someone who only bets 32 ETH.
Buterin is also enthusiastic about Ethereum’s fee market reform (EIP 1559) which seeks to introduce flexible caps on block size. He said this will reduce the volatility of the fees. But, the volatility of the block size will be a little larger.
In this regard, Buterin added when comparing Ethereum with Bitcoin’s reduced coin offering:
“Over the last three months, if this is new normal, then after proof-of-stake the ETH supply is decreasing. The running joke here is that if a fixed-supply currency is a sound money, then a cryptocurrency that has decreasing supply is a supersonic money.”