Vitalik Buterin Ethereum discussion: ETH Governance is underrated

March 20, 2019, | AtoZ MarketsDuring one of the latest EthHub podcasts hosted by Eric Conner Vitalik Buterin had a discussion about the current and future state of Ethereum and the Ethereum control model in particular.

Current Ethereum management model works well

Eric Conner asked Buterin how he evaluates Ethereum’s governance work. While answering the host question, the Ethereum founder expressed his satisfaction with the current network management model, saying that it “works quite well, given the problems that it followed in the protocol.” Although he outlined that “Ethereum governance is under-rated”. The Ethereum founder stated:

as a community, we have never tended to go for extremes. But in reality, on the one hand, people complain about governance as a process. But on the other hand, in terms of concrete outcomes that Ethereum governance has achieved, it’s done really well.”

In the context of resolving disputes and refunding funds, Buterin stated that this is similar to opening a Pandora’s box. He also stated that decentralized funding for promising community projects is easy to implement – in an anonymous context. When asked about other possibilities to fund development long-term, Buterin said that there is only one option: “some kind of inflation funding.”  

Vitalik Buterin Ethereum discussion about privacy and financing

During the discussion on Ethereum, Buterin and Conner touched the security aspects of the network. The Ethereum founder revealed that he is currently working on a patch that will make it difficult to determine whether the same wallet interacts with several decentralized applications. The interviewer noted that he uses different Ethereum wallets for each of his applications as a way to protect his privacy. Both of them agreed that confidentiality is paramount to the long-term viability of Ethereum. Speaking about Ethereum financing, Buterin supports the desire to allow wallet developers to charge 1 Guy commission per transaction through their software. He says that it will bring 2 million dollars a year, which is much more than nothing.

The current size of the Ethereum blockchain is a serious problem

An important conclusion from the EthHub podcast is that Buterin considers the current size of the Ethereum blockchain as a serious problem related to moving forward. In his opinion, only two scaling decisions are viable in terms of blockchain size. One of them is to change the way that smart contracts exist for the stateless model.

The other charges rental contracts for smart contracts when they conduct a vault-based transaction. However, he says that the latter option has a serious vulnerability to attack. Motivated parties can attack a new model, generating many transactions causing memory.

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