The creator of Ethereum believes that layer 2 solutions, capable of reducing transaction fees, are the future of crypto payments.
During the Korea Blockchain Week, Vitalik Buterin, founder and developer of Ethereum, explained that the The future of crypto payments on its network involves the implementation of layer 2 solutions, which are able to reduce transaction fees to zero.
In this regard, Buterin points out that the roll up and other layer 2 solutions such as Optimism, who are capable of compress blockchain data, thanks to systems such as the zero byte compression, are the future of cryptocurrency payments on Ethereum, as they reduce transaction fees to fractions of a dollar.
"The roll ups Current cryptocurrencies have transaction fees between $0,25 and $0.10. However, in the future and with all the improvements that new crypto systems will bring, roll ups “When they introduce it, fees will be less than $0.05, or even $0.02. Much cheaper, more affordable, and a complete game changer,” Buterin said during one of his speeches.
The real purpose of cryptocurrencies
As Buterin points out, the true purpose of cryptocurrencies was not to become a store of value, but to be a international payment system, more economical and accessible for users than current systems.
This is indicated by the original Bitcoin whitepaper from 2008, which indicates that BTC is a “peer-to-peer electronic cash system.”
In this sense, Bitcoin and other cryptocurrencies served this purpose until 2018 when adoption grew massively and Transaction fees have become very expensive.
Buterin believes that the original vision of Bitcoin was lost, in part, because some users found profit in fees. However, the Ethereum founder believes that this will soon change, as most blockchains are working on systems like Lightning Network, that allow them offer transaction fees of less than a cent.
New use cases for cryptocurrency payments
During his talk, Vitalik Buterin pointed out several use cases for these new cryptocurrency payment systems. The first of these would be to offer a stable, economical and fast payment system for all those users in developing countries or countries with unstable economies, which they could use to send and receive remittances without having to pay large commissions.
On the other hand, reducing transaction fees on Ethereum would also allow improve the adoption of non-financial technologies such as Domain Name Systems (DNS), Proof of Attendance systems for Web 3 protocols and also for Web 3 account management systems.
In short, for Buterin the true importance of scalability of blockchains lies in the fact that they will allow unlocking new types of applications, beyond the strictly financial.
[hubspot type=cta portal=20298209 id=38fb28e1-1dc1-40e3-9098-5704ca7fcb07]
