Ethereum’s Must-Have Transitions for Success: Scalability, Security & Privacy

• Ethereum (ETH) needs to achieve scalability, wallet security and privacy in order to succeed.
• This would be accomplished through “L2 (layer-2) scaling transition”, “wallet security transition” and “privacy transition”.
• Without these transitions, users may opt for centralized solutions instead of using Ethereum due to high transaction costs or lack of privacy.

Ethereum’s Crucial Transitions for Success

According to Vitalik Buterin, the founder of Ethereum (ETH), the project needs to execute three “crucial transitions” in order to ensure its place in the future. These transitions include scalability, wallet security and privacy.

Layer-2 Scaling Transition

Rollups are solutions that can help with scalability by executing transactions outside of Ethereum’s blockchain but still recording its transactional data. If this transition is not achieved, users may opt for more centralized solutions due to high transaction costs.

Wallet Security Transition

In order for Ethereum users to remain secure, they need a smart contract wallet which will protect their funds from any potential threats. Failure to do so could result in users turning towards centralized exchanges.

Privacy Transition

Currently all transactions are public on the blockchain which does not provide enough privacy for some users. To keep them from switching over to centralized solutions, there must be privacy-preserving funds transfers available.


“It is not just about technical feasibility but about actual accessibility for regular users,” said Vitalik Buterin. In order for Ethereum (ETH) to succeed it will need these three crucial transitions: scalability via layer- 2 scaling solution; wallet security via smart contracts; and greater user privacy via privacy-preserving funds transfers.

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