Vitalik Buterin concedes that ‘fees are a major issue’ for the usage of Ethereum.
Vitalik Buterin, co-founder of Ethereum, has recognised that high fees continue to be a big hurdle for the digital currency, endangering the concept of a decentralised economy.
Buterin said in an interview with Time magazine that rising costs are impeding Ethereum’s usage as the transition to proof of stake (PoS) occurs.
“Fees are a significant barrier to Ethereum’s utility, particularly for applications other than the financial applications that have dominated in recent months,” he added.
Additionally, Buterin highlighted his dissatisfaction with the effect of excessive fees on the realisation of essential initiatives. Simultaneously, he expressed confidence that if sharding is implemented, costs might be reduced.
“The primary impediment to Ethereum being utilised for innovative things now is the fees. It seems like a dull response; there is a significant social problem in Ethereum, and the primary cause for it is a technological issue that has not been addressed quickly enough,” he continued.
Apart from the exorbitant fees, Buterin noted that the platform’s decentralised purpose might be thwarted by unscrupulous actors seeking personal benefit.
According to the creator, addressing flaws such as gas pricing may enable Ethereum to serve as a springboard for sociopolitical change.
While Ethereum has been criticised for its high fees, research indicates a change. According to our analysis, the Ethereum blockchain’s transaction gas costs fell to a six-month low on March 9, the lowest level since August 2021.
Gas costs have lately increased significantly, with analysts attributing the increase to an increase in interest in non-fungible tokens (NFTs) and decentralised finance (DeFi).
Ethereum is on the verge of migrating to a proof-of-stake
According to Finbold, Ethereum is planning to implement the PoS in conjunction with the expected merging. The next Ethereum Merge will assist in connecting the existing Mainnet to the Beacon Chain Proof-of-Stake scheme.
The update will allow the Mainnet to continue protecting the Proof of Work protocol while the Beacon Chain operates on the Proof of Stake protocol concurrently. In general, this marks the conclusion of Ethereum’s PoW period and the start of the PoS shift.