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HomeCryptocurrencyVitalik Buterin Highlights Two Ethereum Critical Challenges and How to Solve Them

Vitalik Buterin Highlights Two Ethereum Critical Challenges and How to Solve Them

Vitalik Buterin, the co-founder of Ethereum, has written a new paper in which he examines the technical challenges that Ethereum Layer 1 (L1) and Layer 2 (L2) solutions confront when it comes to interoperability. With the growing popularity of Ethereum’s L2s, it is critical to discover techniques to ease cross-layer transactions.

Buterin’s article highlights two critical challenges that must be addressed. The first issue raised is the requirement for users to be able to access various accounts without having to perform too many transactions to change their access keys across different L2s and L1s. Secondly, he emphasizes the need of addressing hypothetical addresses, which must securely hold funds but have not yet been registered on-chain.

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Buterin has developed a novel design called asset/keystore separation to address these difficult issues. Users can use this model to keep a keystore contract that holds their verification key and specifies the rules for updating it. The verification key is then read cross-chain by wallet contracts on various L2s and L1S.

Buterin suggests two implementations for this system. The “light version” would need each wallet to locally hold the verification key, which would be updated with cross-chain evidence of the key store’s current state. The “heavy version” would necessitate cross-chain verification for each transaction, which would reduce keystore updates while increasing per-transaction costs.

The article identifies five different sorts of proof schemes that could be utilized, each with its own set of advantages and disadvantages. Buterin, on the other hand, underlined the importance of highly optimized cross-chain proofs. Bundling operations submitted by users may assist save expenses over time.

Furthermore, Layer 2 solutions should reduce the latency associated with accessing the Layer 1 state, and wallets can be located on systems with lower Ethereum connections, such as Layer 3s or different chains. However, it is critical to keep the Keystore on Layer 1 or high-security zero-knowledge rollup Layer 2s.

Finally, Ethereum is striving to improve cross-chain interactions, and asset/keystore separation is now a priority. Buterin has also stated that anonymity is critical to Ethereum’s overall development.

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The Interoperability Challenge Amid the Increasing Adoption of Ethereum’s L2s

As the adoption of Ethereum L2s continues to increase, the challenges for interoperability become more significant. Currently, when using different L2s and L1s, users face technical difficulties when trying to hold assets across various L2s and L1s.

Thus, a method or system is needed to enable users to change their access keys seamlessly across multiple accounts. Furthermore, there is a need to handle counterfactual addresses that need to maintain secure funds but are yet to be registered on-chain.


The need for interoperability is essential amid Ethereum’s increasing adoption of L2s. Nonetheless, with Buterin’s proposed architecture, the cross-chain interactions will be more accessible and effective to Ethereum users in the future.

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Adedoyin Aka
Adedoyin Aka
Adedoyin is a graduate of Law and a Crypto & Blockchain expert who strongly believes that Blockchain is the future. At TimesTabloid, she focuses on crypto and blockchain educational content.

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