What happened: Buterin said there were “important” but “quite subtle” technical factors that limited the scale of blockchain.
The cryptocurrency co-creator referred to a tweet from Musk that spoke of DOGE’s urgency as a leader among cryptocurrencies if he implements certain changes.
Ideally, Doge speeds up block time 10X, increases block size 10X, and lowers fees by 100X. Then he wins hands down.
– Elon Musk (@elonmusk) May 16, 2021
Buterin explained why it is difficult to achieve “Musk’s wishes” “without leading to extreme centralization and without compromising the fundamental properties that make a blockchain what it is.”
See also: How to buy Ethereum (ETH)
He stressed that it was important “for the decentralization of the blockchain to allow regular users to be able to run a node.”
Why is this important: Buterin spoke of decentralization as a way to reduce security risks and network outages.
“We don’t know what the exact threshold is at which collective immunity against coordinated attacks kicks in, but there is one thing that is absolutely clear: more good nodes, less bad nodes, and we definitely need to. more than a few dozen or a few hundred. Wrote the co-creator of Ethereum.
Buterin noted that while fragmented blockchains “can scale much further because no node in a fragmented blockchain needs to process every transaction” even there, there are capacity barriers.
See also: Elon Musk Works With Dogecoin Developers “To Improve System Transaction Efficiency”
As for Ethereum, he pointed out that the network can process over a million transactions per second with sharding.
“But it will take work to get there without sacrificing the decentralization that makes blockchains so valuable,” Buterin wrote.
Last week, another Ethereum co-creator Charles Hoskinson – who is also the founder of Cardano (ADA) – gave advice to Musk on how to make a better Dogecoin.
Price action: ETH traded 3.1% lower to $ 2,145.86 at press time, while DOGE traded 8.42% lower to $ 0.31. Bitcoin (BTC) was down 3.47% to $ 35,448.30 in a 24 hour period.
Read more: Ethereum Co-Founder Vitalik Buterin Says Cryptocurrencies Are In A ‘Bubble’