Here is what bothers Vitalik Buterin about cryptocurrency
Ethereum’s Vitalik Buterin shed some light on the challenges that cryptocurrency companies must overcome for it to become a conventional transaction method in the economy. He was speaking in an interview with Tyler Cowen. Tyler questioned Buterin about a wide variety of things including cryptoeconomics, places to visit in time and space, why centralization is not all that bad for cryptocurrency and understanding blockchain.
Hindrances to Cryptocurrency growth
Buterin explains in the interview the two main barriers faced by the cryptocurrency and the blockchain technology from being accepted as a prevalent currency by the world. He said that scalability and ease of use are the two main entities that forbid the crypto coins from achieving their dream of widespread adoption. He also mentioned that banking and regulatory issues also caused concern for cryptocurrencies.
He added that Ethereum can only achieve its full vision if it solves the scalability trouble. He said, “Ethereum blockchain’s capacity right now is about 15 transactions a second. If you even consider something like putting all of the Uber rides on the blockchain, that’s 12 transactions per second already. I do feel just raw ability to process more transactions per second is important, and that could happen through sharding and other base layer scalability upgrades to the system which we are working on”.
Buterin said,”….cryptocurrency exchanges have a hard time getting and maintaining bank accounts.” Banks have shunned the companies dealing in cryptocurrencies on account of the popular opinion that the digital currencies are scams. Therefore, the companies are finding it hard to convert their native currency to fiat currency. “Moving ether from one account to another is absolutely frictionless. Converting ether into fiat currency is absolutely not frictionless” told Buterin. Blockchain technology can replace bankers as the middlemen for transactions and no institutional trust is required to conduct transactions on Blockchain because of its highly transparent nature.
According to Bitinfocharts, Ethereum transactions were found to be more than triple the bitcoin transactions on July 17. On the day Bitcoin’s total transactions stood at 233,807 while Ethereum’ transaction volume totaled at 701,292. Ethereum network features the ability to power decentralized apps. Therefore it always maintains high transaction volumes. Ethereum is currently trading at $480.88 and is losing against USD by 3.77%. The network clog of the recent weeks doesn’t seem to have affected the coin’s performance in the market.