Ethereum co-founder and main spokesperson Vitalik Buterin has admitted that the ETH blockchain is “nearly unusable for many classes of applications,” urging developers to focus on Layer Two” (L2) solutions instead. His comments were a tacit confession to something many have said for a long time—Ethereum can’t scale. It’s a sign the time is ripe for sensible developers to start looking at blockchains that can, like Bitcoin SV (BSV).
Base-layer scalability for ETH applications can supposedly only happen with the last major phase of Ethereum 2.0, “which is still years away,” he said.
Ethereum 2.0 is a long-awaited “upgrade” to the network that fundamentally changes its protocol rules and economic incentives. The most substantial of these is moving from the current proof-of-work processing model to a proof-of-stake algorithm—itself an economically questionable model that, even if the code itself functions as specified, only creates more long-term uncertainty. Many lawyers have already opined that proof-of-stake changes ETH’s legal status to being an illegal security issuance, in addition to it completely changing the security model by centralizing all control into the hands of Vitalik and friends who premined their ETH stash. But until ETH 2.0 becomes a reality at some undetermined future point, Ethereum’s scaling problems are very real today.
Notably, Buterin posted his comments at the conclusion of the CoinGeek Live event that took place in New York City and London last week. It’s impossible to know if that’s a coincidence or if Buterin was watching the event livestream—though given the importance of the scaling issue and his reputational stake in its outcome, he at least should have been.
Want to scale Ethereum? Use BSV
Meanwhile, Xiaohui Liu, founder of BSV contracts platform sCrypt, has proposed a novel solution to scale Ethereum today: by “storing its global state in a single contract on Bitcoin.”
The reasons for this,...