Vitalik Buterin Discusses the Current State and Future Outlook of the encryption Field

In a recent speech, Vitalik Buterin shared his views on the current state of the encryption field and his outlook for the next decade. He pointed out that although people often say that the encryption field is still in its early stages, this statement is no longer accurate.

Buterin believes that the encryption field is currently in a special stage. He reflected on his experience visiting Argentina in 2021, where he witnessed the widespread use of cryptocurrencies locally. However, he also noted that high transaction fees have been one of the main factors hindering the popularization of cryptocurrencies.

Recently, the transaction fees on the Ethereum network have significantly decreased, dropping from around $10 to less than 1 cent. At the same time, Layer 2 solutions such as OP and ARB have also made important progress, enhancing the network's security and efficiency. These improvements have reduced transaction confirmation times to between 5 and 15 seconds, and in some Layer 2 solutions, it can even reach one second.

Buterin emphasized that these technological advancements have greatly improved the user experience. He showcased the comparison between the rudimentary interface of 2015 and the high-quality applications of today, which can now compete with Web2 products in terms of user interface. Furthermore, there have also been significant advancements in areas such as account abstraction, security tools, and privacy protocols.

Regarding the value of cryptocurrencies, Buterin pointed out that people should not view it merely as an efficiency technology. He believes the true advantage of encryption lies in its ability to create digital robustness, similar to concrete structures in the physical world. This characteristic allows blockchains to build durable and strong digital structures that can withstand destruction.

Buterin compared blockchain to "digital concrete" used to build "virtual sky castles." These digital castles can serve as fortresses protecting communities or as venues for entertainment or preservation of cultural heritage. He emphasized that the serious and fun aspects of the cryptocurrency world can coexist.

Looking to the future, Buterin believes that a key goal is to meet the demands of mainstream adoption while maintaining the values of open source and decentralization. He specifically mentioned the importance of wallet security and recommended innovative solutions such as multi-signature smart wallets to balance security and convenience.

Finally, Buterin envisions the development direction of the Ethereum ecosystem, including reducing confirmation times, increasing capacity, and improving decentralization and usability. He believes these improvements will drive significant progress in the entire encryption industry over the next decade.