Recently, blockchain innovator Vitalik Buterin and other cryptocurrency experts have been saying that Bitcoin needs to do more than just payments. Buterin emphasized in a Twitter Spaces conversation this week that there are important lessons to be learned from Ethereum compared to Bitcoin. The discussion particularly focused on Bitcoin's slow transaction speed and scalability issues.
Scaling Issue:
One of Bitcoin's biggest problems is its slow transaction speed, which prevents users from sending and receiving digital assets quickly. Second-layer scaling approaches are needed to solve this problem. Vitalik Buterin, the creator of Ethereum, stated that there are many things Bitcoin can learn in this regard. Ethereum has experimented with various scaling solutions in the past to address this issue and is currently in the process of implementing its latest upgrade, EIP-4844. With this upgrade, Ethereum will be capable of processing 100,000 transactions per second. #ETH #Ethereum #BTC #vitalik $BTC $ETH
Scaling Solutions and Policies:
Buterin mentioned that Bitcoin needs to focus on scaling solutions to solve its scaling issue. He specifically highlighted the need for scaling options like Plasma or ZK Rollups, which have been successfully tested on Ethereum and can serve as examples for Bitcoin. Buterin expressed a preference for ZK-snark-based solutions and spoke highly of solutions like Optimism and Arbitrum.
Policy Issue:
However, for Buterin, the real issue lies in Bitcoin's policies. According to him, Bitcoin has peculiar policies, and he doesn't feel aligned with them. Other experts participating in the discussion also addressed Bitcoin's policy issues and expressed their concerns about them.
Security and Limited Supply:
Eric Wall raised questions about Bitcoin's security model and the 21 million supply limit. Buterin stated that security concerns can be addressed as block rewards decrease and a reasonable fee market is established. He also mentioned that both Ethereum and Bitcoin have issues with layer-1 privacy and face challenges in decentralized consensus models.
In Summary:
Ethereum's founder, Vitalik Buterin, states that Bitcoin needs scaling solutions to do more than just payments. He also raises concerns about Bitcoin's policy issues. Other experts in the discussion express that Bitcoin can learn from Ethereum's experiments to solve its scaling problem. These discussions are seen as an important step for the development and adoption of cryptocurrencies.
