Vitalik Buterin discusses Ethereum Scalability Sollution in the FTX Crisis
Vitalik Buterin, the CEO and cofounder of Ethereum, suggested in a recent letter that the ZK-SNark feature be used to increase the network’s scalability. Balaji Srinivasan (ex-CTO of Coinbase and Kraken) was also mentioned in the letter.
According to Vitalik’s letter, ZK-Snarks was a powerful technology. Vitalik also stated that ZK-SNARKs will help simplify and improve privacy in proof of liability protocols. He explained how Z-Snarks allows users to create proofs that can be checked immediately even if the underlying computation takes time. The “ZK” (“zero Knowledge”) part of the proof adds another feature: it can hide some of the computation’s inputs.
The CEO of Ethereum also spoke out about the importance and benefits of the Validium smart contracts. According to Vitalik, an operator cannot steal money. However, depending on the implementation’s details, some user money might be stuck if the operator is not available.
Binance CEO responds positively to Vitalik plan
Binance’s CEO responded positively to the letter via Twitter, stating that Binance will implement it and make the source open-source.
The CEO of Ethereum expressed his hope that crypto will bring us closer to non-custodial exchanges all over the world.
This can be done at the wallet layer, not within the exchange. It is possible to recover wallets, but it might be necessary to have highly centralised recovery options for users who are dealing with small amounts or institutions that require such arrangements.
ZK-SNARK adds privacy-preserving shielded transaction that are more efficient and less memory, but it also speeds up a network. It is amazing to see ideas being created, destroyed, and rebuilt across the cryptocurrency community. It is encouraging that Ethereum’s complex on-chain abstractions are being examined. This will only help to ensure a brighter future.
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