Ethereum co-founder discusses the outlook for the encryption industry over the next decade

Ethereum co-founder Vitalik Buterin delivered a keynote speech at the TOKEN2049 conference, sharing his outlook on the future of the encryption field over the next decade. Buterin believes that the current encryption field is no longer in its early stages but has entered a special period of development.

Buterin pointed out that the Ethereum project has existed for over 10 years, and in the 15 years since the birth of Bitcoin, we have witnessed technologies like ChatGPT emerge from nothing and completely change people's perceptions of artificial intelligence. Therefore, we need to reexamine the development stage of the encryption industry.

He reflected on his experience visiting Argentina in 2021, when a considerable crowd was actively using encryption. However, the high transaction fees became one of the main factors hindering the widespread adoption of encryption. Buterin mentioned that the transaction fees for Ethereum once soared to hundreds of dollars, which led to the failure of many projects.

However, the recent situation has significantly improved. The transaction fees for Ethereum have decreased from $10 to less than 1 cent. At the same time, major Layer 2 solutions have also reached important security milestones. These advancements have made transaction fees more affordable, and the transaction confirmation time has been reduced to between 5 to 15 seconds.

In terms of user experience, Buterin showcased a significant improvement in the quality of encryption application interfaces. He mentioned advancements such as account abstraction, the popularization of security tools, and the mainstream application of ZK-snarks. These improvements have made the use of cryptocurrencies more convenient.

Buterin emphasized that the value of cryptocurrency lies not only in technological efficiency but also in its unique characteristics. He cited Josh Stark's view that blockchain technology can create a "digital robustness" that allows us to establish durable and difficult-to-alter digital structures.

Looking to the future, Buterin stated that the key goal of the encryption industry should be to meet the needs of mainstream adoption while maintaining the values of open source and decentralization. He specifically mentioned the importance of wallet security, believing that multi-signature smart wallets can strike a balance between protecting user asset security and providing convenience.

Buterin also introduced a demonstration wallet based on Ethereum, which can provide a user experience similar to Venmo while ensuring a high level of privacy and compliance. He believes that this type of wallet represents the future direction of cryptocurrency applications.

Finally, Buterin mentioned that the Ethereum mainnet is undergoing several technical improvements that will make Layer 1 more decentralized and easier to verify while reducing confirmation times and increasing capacity. He believes that these advancements will lay the foundation for the development of the entire encryption industry in the next decade.