Ethereum developer Vitalik Buterin: "Blockchain efficiency could rise by 1000x"; SBI to start handling ETH from the 14th
Vitalik Buterin, the ETH (Ethereum) founder and the third-largest market cap, stated on his Twitter that by using PoS-based sharding, he believes the blockchain will become "thousands of times more efficient" in the future.Thousands of times more efficient.
8. Public blockchains have a genuine competitive advantage over both centralized servers and consortium chains in credibly signaling neutrality. Right now it seems like benefits like this might not be worth the costs of public chains, but that's just the public chains of today...
9. Blockchains of the future with proof of stake and sharding will be thousands of times more efficient, and so the efficiency sacrifices of putting things on a chain will become more and more acceptable.
Buterin Declares Efficiency of the ETH Blockchain
ETH developer Vitalik Buterin said on December 10 on his Twitter that the blockchain's use in the financial sector is in its early stages and will be applied beyond finance as well in the future.
10. Blockchains are NOT about cutting computational costs (at least relative to centralized servers). Blockchains are about incurring a sacrifice in the form of INCREASED computational costs to achieve a *decrease* in *social costs*.
11. Computers have become 1 trillion times cheaper, per unit computation, in the last 70 years. Human labor has gotten 2-10x more expensive. So incurring high technical costs to achieve reductions in social costs is at least sometimes a very good bargain.
In the sequence of tweets, the three statements considered most important regarding blockchain are the following.
- PoS and sharding will make things thousands of times more efficient
- Usage outside the financial sector will increase
- Investing large sums in high technical costs to reduce social costs can be cost-effective at times
Thousands of times more efficient due to PoS and sharding
Buterin discussed PoS (Proof of Stake) and sharding as follows.
“Future blockchains equipped with PoS (Proof of Stake) and sharding will be thousands of times more efficient, and as a result, the act of placing things on a chain will become increasingly acceptable.”
It is a type of cryptocurrency management system, also called a consensus algorithm, and there are other consensus algorithms such as PoW and PoL besides PoS.
For more detailshere
From his remarks at the November "Devcno4 Conference" he attended, it is clear that his expectations for ETH (Ethereum) and blockchain in general remain consistent.
“In Ethereum's next update, Serenity/Serenity, moving from PoW to PoS will improve scalability and reduce energy consumption.
Ethereum's scalability capacity could reach 1000x.”
For details on the Serenity update, please see below.
>>>What is Serenity? Will Ethereum's capacity increase 1000x and price surge?
Usage outside the financial sector will increase
As scalability improves and user experience (UX) improves,
the use of blockchain outside the financial sector will increase
“The use of blockchain outside the financial sector will come to occupy an even larger portion of blockchain technology history.”
He predicted this.
Investing high technical costs to reduce social costs can be cost-effective
Finally, Buterin noted that blockchain increases computational costs while reducing social costs.
He pointed out that humanity, over the past 70 years, has borne high technical costs for computer development,which has led to the world’s labor costs rising by 2–10 timesas an example and said the following.
