Ethereum co-founder Vitalik Buterin openly admitted that the Ethereum blockchain is currently facing a scalability dilemma.
In an interview with The Star, Buterin stated that the Ethereum blockchain is full. Big organizations that want to build on the network have to either wait for scalable solutions or contend with high transaction fees.
“Scalability is a big bottleneck because the Ethereum blockchain is almost full. If you’re a bigger organization, the calculus is that if we join, it will not only be more full but we will be competing with everyone for transaction space. It’s already expensive and it will be even five times more expensive because of us. There is pressure keeping people from joining.”
This, according to him, represents the biggest hurdle for cryptocurrency adoption. One of the solutions put forth by Buterin is to move away from the requirement that every node in the network has to verify each transaction, to a model where verification is done on a portion of transactions on the network.
According to Buterin, this would bring down costs 100-fold, massively improving the scalability of the Ethereum blockchain and enabling higher transaction speeds. The only drawdown is that the security of the network has to be sacrificed, although Buterin claims it would be minimally impacted.
When asked about other roadblocks cryptocurrencies in general face on the road to mainstream adoption, the co-founder highlighted that there are still issues with usability, privacy and account security. While Buterin believes the technology is there or thereabouts in development, it still has to reach the point when people use it en masse.
Recently, Buterin argued that the future of the cryptocurrency industry will be shared among several networks and will bring interoperable solutions between blockchains. In July, Buterin had entertained the thought of using the Bitcoin Cash (BCH) blockchain as a temporary scalability solution for the Ethereum network.