Key Points
- A novel model of faster transaction confirmations on Ethereum has been proposed by Vitalik Buterin.
- Finalization of each block before the next one leads to speed improvement.
- Layer-2 solutions and fee-based confirmations are among the changes suggested.
- The purpose of these modifications is to maintain a competitive advantage in transaction speeds by Ethereum.
Vitalik Buterin, co-founder of Ethereum, has once again shaken up the cryptocurrency community with his new suggestion to increase transaction speeds on the network.
In a recent blog post, Buterin presented an innovative method where every block is finalized before the creation of the next block. This technique can greatly reduce confirmation times for transactions thereby improving user experience.
⚡ Vitalik Buterin, co-founder of #Ethereum, proposes innovations to reduce time to confirm transactions on the network#Buterin stresses the importance of maintaining decentralisation, security while improving speed.$ETHhttps://t.co/8VVphyT57S
— Cointribune EN (@CointribuneEN) July 1, 2024
Layer-2 Solutions Could Speed Up Ethereum
One aspect of Vitalik’s proposal involves leveraging layer two solutions. These solutions work off-chain which means they don’t burden the main Ethereum network like normal transactions do thus making them faster.
By moving a portion of transactions off-chain, the remaining ones can be processed by the main Ethereum network more quickly and efficiently.
Buterin also recommended using fee-based confirmations as an incentive for faster processing of transactions.
Those who are willing to pay higher fees will have their transactions prioritized hence ensuring quicker confirmations. This can help streamline transaction processing and enhance overall efficiency within networks.
Keeping Up With Competitors
Although being one of the pioneers in the blockchain technology space, Ethereum has not matched other platforms’ record-breaking transaction speeds till now.
Even though Merge made significant improvements reducing time taken by blocks from 5s down to at most 20s; it still falls short as compared to various alternative chains which boast even much faster speeds than that!
Therefore what Buterin proposes here is just another move calculated towards keeping pace with ever-changing markets because according to him “speed isn’t everything”.
In addition, he wants us to focus also on better user experience especially through faster confirmations thus attracting and retaining more users as well as developers which will ensure continuous growth plus relevance within the blockchain domain.
