Vitalik Buterin sees crypto payments costing nothing with Layer-2 scaling

Ethereum co-founder Vitalik Buterin has touted layer-2 scaling as the aid crypto payments needs to “make sense” once again.

With layer-2 scaling, Buterin sees transaction costs falling to fractions of a cent.

At Korea Blockchain Week (KBW), Buterin stated that the final hurdle to getting transactions down to fractions of a cent at scale is blockchain data compression, according to a CoinTelegraph report.

Vitalik pointed to “solid work happening” with roll-ups at the moment such as Optimism’s layer-2 scaling solution for Ethereum.

Vitalik also trolled the apex cryptocurrency Bitcoin for having deviated from its proposition of cheap transaction fees.

Buterin emphasized that the key use case of Bitcoin (BTC) presented in its white paper from 2008 was to provide a “peer-to-peer electronic cash system” that was cheaper than traditional payment methods.

Yet, according to Buterin, this became no longer the case in 2018 when adoption increased and blockchain transactions became too expensive.

Buterin thinks that Bitcoin and other assets will soon be able to provide this use case once again as scaling solutions gradually bring the costs down to fractions of a cent.

Buterin also said that cheap crypto transactions will help countries or places with ineffective financial systems and will help ramp up crypto adoption for non-financial applications.

Leave a Reply

Your email address will not be published.