Dreams
Vitalik Buterin, the co-founder of Ethereum, recently criticized the rise of transaction fees on Ethereum, suggesting that this phenomenon could be leading Web3 further away from its decentralization dreams. According to Buterin, the increase in fees could be stalling progress towards Web3’s decentralization goals, as the more expensive fees make it difficult for everyday users to access the platform and perform transactions.
Buterin expressed his concerns at an Ethereal Virtual Summit, highlighting that fees had climbed from $2 to nearly $10 in the past few months. He argued that such an increase is not viable for small transactions, casting doubts on the high promises that the Web3 represented when it was first introduced. Apart from impacting smaller transactions, Buterin believed that the fees might also give larger users too much of an advantage over the network, risking its decentralization.
To address this, Buterin suggested that network protocols should focus on introducing more efficient data structures and smart contracts to reduce costs and increase throughput. He also proposed an increase in the supply of ETH, possibly locked for long-term staking, with the aim of lowering transaction fees for users. Buterin concluded by emphasizing that the key to decentralization for the Web3 is to enable and encourage everyday users to use the network, making this possible only through increased scalability and reduction in fees.
