Vitalik Buterin, the founder of Ethereum, says that electronic money and blockchain technology have at least two major barriers to overcome before they can reach mainstream acceptance.
Two major challenges set out: scalability and user experience
In a recent interview with economist Tyler Cowen, Buterin says scalability and ease of use are critical to the success of this emerging technology.
"Ethereal Blockchain's current capacity is about 15 transactions per second. If you even consider something like putting a Uber car on a blockchain, that number is 12 deals per second.
If you talk about the ability to process PayPal over, there are hundreds of transactions per second, and they are researching to be able to increase the processing capacity to thousands.
I feel only raw ability to handle multiple transactions per second is important, and that can happen through sharding and upgrading the scalability of other base classes to the system that we Processing.
It can happen through second layer technologies such as state and plasma channels, which we are also investigating. But if one of these approaches succeeds, then I think the blockchain will be significantly cheaper and actually more ready for use in mainstream.
Another big issue is the user experience - both the user experience of blockchain usage, as well as the user experience of security.
How to set up a wallet capable of protecting your money from being hacked or locking you not being lost or stolen in just one night? These are the challenges that I think we need more improvement, and we will see these new changes in the next few years. "
Buterin: Which electronic currency is worth?
Buterin also mentions what brings value to an electronic currency, and one should judge whether a new electronic currency is worth or not.
"I've thought about this a lot, and I'm still not sure what the best answer is, because ultimately it depends a lot on how electronic money is developed.
One way to measure this is to consider electronic money as a type of company that earns revenue through transaction fees, especially if the transaction fees are burned or redistributed to the owners.
In that case, you can simply say that the net value of the electronic currency is the net present value of the transaction fee that people receive.
For example, Ethereal's transaction fee is about $ 500,000 a day, or about $ 180 million a year. If you try to capitalize on the A / C market as a company, the 'P / E ratio' is only 200, high for a company, but not much higher than its value. charts.
You may also consider trying to evaluate other electronic currencies in your capacity as a means of exchange. Then you have MV = PT and all other models.
There are also models of this value store, people hold it because they expect more people to hold it in the future and because people continue to be richer and the population continues to grow. As long as prices rise slowly, it can be stable in the long run.
In fact, I do not really know the answer, and if you are looking to design a sustainable electronic currency, then I think there is definitely a story about why it will maintain its value based on so many different economic models. "
What makes Buterin fascinated with this industry?
For his own business, Buterin mentioned Ethereum, and what made him most excited about the new industry that pre-coding technology and Blockchain was born.
"In the end, there are different Ethereal communities in the world, and they have different ideas about the meaning of Ethereum.
For example, you could be a full time employee of an organization based in Switzerland called the Ethereum Foundation, or in Singapore called Ethereum Asia Pacific Limited.
You may have received a grant from the Ethereum Foundation. You can also be a group of people who love this market, and just happen to join our market.
You can be a person working on some Ethereum projects. There are certainly people who work outside of the Ethereum Foundation who make far more contributions than some in the background. I think these are the people who have made the success and improvement for the platform.
There are basically a lot of different ways to get involved in the Ethereum community. Basically, you have a lot of ways to join the Ethereum community. You can invest in it or maybe work for some traditional companies and get funding from the Ethereum Foundation for your project.
You can work on some Ethereum applications and adjoining applications. You may just be a solitary wolf working at home. You can choose any combination you want.
If there is balance, you can be part of Ethereum, while also being part of a structured group. You can be a part of it as a lone wolf. You can be a part of it as part of some of the larger traditional companies. You can be a part of startup.
I feel like this is part of what makes electronic money fun, in that they are not just a decentralized censorship, no matter what a system, but a product.
But they are also an improvement, which itself combines many aspects of decentralization in the way they are produced and about how to live, collaborate and build things. "