Vitalik Buterin, the co-founder, has pointed out that ETH most significant challenges still revolve around privacy, consensus, the security of smart contracts, and scalability.
During a keynote speech delivered at Nanyang Technological University in Singapore on September 6th, Vitalik Buterin emphasized that Ethereum’s most pressing concerns continue to be privacy, consensus, smart contract security, and scalability.
The co-founder of ETH delved into the ‘Challenges Facing Ethereum’ under the theme of ‘The Past and Present of Ethereum.’ He covered a wide range of topics, from the infamous 2016 DAO hacking incident to his current focus on real-world usage and adoption.
Reflecting on the technical advancements and challenges, Buterin remarked, “Interestingly, one aspect of Ethereum’s technological progress is that we find ourselves discussing topics today that bear striking similarities to discussions held six years ago. If you were to ask me or anyone else about the most significant issues confronting Ethereum, you would receive essentially the same responses: privacy, consensus, smart contract security, and scalability.”
He elaborated further, stating, “These challenges remain the same today as they were six years ago. However, it’s worth noting that some progress has been made since 2017.
“For instance, in 2017, privacy was primarily a technical challenge. At that time, a new form of cryptography known as zero-knowledge proofs, or zk-SNARKs, emerged. This technology enables the creation of cryptographic proofs that demonstrate specific mathematical properties of data, such as its validity, without revealing any other details about the data. Zcash, a privacy-focused cryptocurrency launched in 2016, was one of the first to utilize zk-SNARKs for privacy.
“How does it work? Essentially, when you spend a coin in Zcash, instead of directly revealing the coin you’re spending, you provide a proof that you’re spending an unspent coin without disclosing any additional information about it. These proofs are required to maintain the integrity of the monetary system without inflating it while preserving user privacy.
He continued, “In 2017, the challenge was to integrate this technology into Ethereum and make zk-SNARKs functional. These techniques are rooted in a complex mathematical field called elliptic curve cryptography. To employ this technology, we introduced overlays called ‘zero-knowledge statements,’ which are codes enabling the use of zk-SNARKs on the blockchain. Using smart contracts, you can now construct applications with the same privacy-preserving logic on Ethereum. This was the state of affairs in 2017. Fast forward to 2023, and the current technological landscape is highly advanced, with robust zk-SNARKs libraries, development environments, tools, and protocols.”
Addressing ETH recent transition to Proof-of-Stake through the Merge, he noted, “When you shift from Proof-of-Work to Proof-of-Stake, a significant event known as ‘The Merge’ occurs. From a security standpoint, there have been no major incidents, and that’s precisely the goal. Sometimes, it’s crucial to remember that an event not happening is indeed good news. So, substantial improvements have been made in that regard, although there are still ongoing challenges.”
In conclusion, he remarked, “It has been a long and gradual journey from the initial concept to the process of steadily addressing various challenges in practical implementation. I hope that over the next five years, we can successfully tackle most of these challenges.”
