Vitalik Buterin: “the growth of transaction fees limits the spread of Ethereum

Vitalik Buterin: "the growth of transaction fees limits the spread of Ethereum

According to Ethereum co-founder Vitalik Buterin, the growth of transaction fees in the Ethereum blockchain harms the speed of mass distribution of the network.

In an interview with the Toronto Star, Buterin suggested that projects that are considering whether to use Ethereum are likely to abandon this idea, since the blockchain is overloaded with transactions and is at the limit of its capabilities.

Buterin’s comments speak about his understanding of the difficulties that the project will face in view 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 take into account that you will have to compete with everyone for space for transactions. This is already expensive, and will be five times more expensive when the big players appear. Therefore, large firms do not want to work in the network. However, solving the issue of Ethereum scalability can significantly improve the situation.”

At the moment, the average weekly amount of fees for transactions on the network has reached its lowest in 50 days, starting to decline since July 1, and currently stands at about 0.11 ETH per transaction.

Buterin presented the move to PoS as a potential solution to the problem, saying that changing the transaction verification process could reduce the commission amount by 100 times, freeing up space 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 to temporarily use the Bitcoin Cash blockchain for data processing and solving the scalability problem of the main Ethereum network.