Vitalik Buterin Discusses the Development of Ethereum and the Current State of the Encryption Industry

Recently, Ethereum founder Vitalik Buterin gave an interview, sharing his views on the development of Ethereum and the current state of the encryption industry.

View on the Current Encryption Market

Vitalik stated that the current bear market environment has brought calm back to the industry. He believes this is an opportunity for the encryption field to reflect on some issues from the past year:

• Overcommitment leads to excessively high public expectations
• Attracted some unsuitable participants
• Attracted more regulatory attention

He believes that now is a good time for the encryption industry to return to its essence and prepare for future development.

Ethereum Technology Development

Vitalik pointed out that although blockchain scalability still has deficiencies, many advancements have been made, such as the development of Rollups, sharding, ZK-Rollups, and other technologies. He mentioned that some previously emphasized technologies are being implemented, such as Layer 2 solutions like Optimism and Arbitrum, as well as the ERC-4337 account abstraction proposal.

Regarding the development speed of Ethereum, Vitalik believes there are two forces pulling at each other: on one hand, the community is constantly growing and pushing for accelerated development, and on the other hand, there is a need for caution to avoid making mistakes. He hopes that in the coming years, Ethereum can strike a balance between accelerating innovation and stable development.

Views on DeFi and High-Yield Projects

Vitalik stated that the collapse of Terra highlighted the importance of principles. He believes that any risk-free return rate exceeding 10% is difficult to sustain, and the cryptocurrency world is no exception. He is glad that Terra collapsed in time to avoid greater losses.

He also mentioned that this is one of the reasons he is not very enthusiastic about Bitcoin and Ethereum ETFs, as the encryption field still needs more time to develop.

Expectations for the Ethereum Community

Vitalik calls on community members to focus on creating meaningful projects. He cites ERC-4337 as an example, praising its development team for not issuing tokens or over-marketing, but rather focusing on technical innovations to enhance wallet security and L2 performance.

He suggested that project teams should focus on the project’s vision and solutions to real problems when communicating with him, rather than simply promoting tokens. Vitalik stated that he would provide help and encouragement for valuable projects as much as possible.