Vitalik Buterin recommends way to make Ethereum (ETH) more scalable

Written by: Ali Raza
March 3, 2021
  • Ethereum has been having scaling issues and many stakeholders have proposed a way forward for the blockchain.
  • Two-layer rollups have been deployed previously, but they didn’t provide the scalability problem.
  • Buterin says his recommendation will improve the scalability in Ethereum and enable proper node communication.

Ethereum co-founder Vitalik Buterin has stated that Ethereum’s scalability issue can be fixed if a unified system is created via a layer-two scaling project. He has also given his thought to the ideal scaling solution for such a project.

According to Buterin, two protocols can utilize rollups to ensure proper communication between each other, while maintaining composability and interconnectivity.

Solving Ethereum’s scalability issues

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Rollups do not store data within the main chain, even though they are smart contract networks designed within the blockchain framework.

They come in different types, and each of them makes use of smart contracts like zero-knowledge and optimism.

Layer-two rollups are not new, as they have already been deployed in several DeFi projects such as Synthetix and Loopring.

But the features of the previously deployed rollups did not allow projects to communicate with one another on layer-two directly.

However, Buterin’s proposal appears to have a solution to that. According to his proposal, one rollup will have complete support for a smart contract while the other one can process simple transactions.

Buterin also explained the functionality of the proposal. He explained with a hypothetical exchange he named “Ivan”. He said the smart contract will have a programmable feature to accepts “memos.”

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The proposal is similar to methods used by banks

Buterin also addresses issues that may result from this type of transaction. According to him, the worst-case scenario would be if one party does not receive coins from the other party as expected.

He stated that the worst-case scenario can still be addressed. Buterin said the other party can wait until they receive transaction confirmation of the first rollup. They can decide to go through another route to get coins on rollup B to pay fees before claiming the funds. Alon Murdoch, while replying to the proposal, stated that it’s similar to the methods banks use when clearing transactions.