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- 1 Ethereum’s co-founder released an article discussing the blockchain’s future.
- 2 The letter argues about issues of interoperability and more effortless transactions.
In a recently shared article by Ethereum co-founder Vitalik Buterin, he discussed issues of interoperability and the future of the blockchain. The paper sheds light on the technical issues related to interoperability between the Layer-1 (L1) and Layer-2 (L2) solutions. As L2 adoption continues to surge, the challenge of facilitating seamless cross-layer interaction becomes increasingly daunting.
Vitalik Buterin Shared Article on Ethereum’s Future
Buterin highlights two significant issues in the article. The first is the scenario where users are holding assets across multiple L2s and L1s. To counteract this, he suggests that users change their access keys across various accounts as this would eliminate the need to perform numerous transactions.
Second, he discussed the requirement to handle counterfactual addresses. Although these addresses are yet to be registered on-chain, they must hold the funds securely.
To address these issues, Vitalik proposed a unique architecture called asset/keystore separation. This model would allow a user to maintain keystore contracts containing their verification keys and underlying modification rules. Additionally, the wallet contracts on L1 and L2s could read the cross-chain data to retrieve the verification key.
The implementation of this system is proposed in two ways. The “Light Version” would oblige every wallet to store the verification key locally, along with requiring updation on cross-chain proof of the key store’s current state. The “Heavy Version” would demand cross-chain evidence of each transaction. This would make updating the keystore cheaper but could increase the per-transaction costs.
Vitalik discusses five types of proof schemes that could be used, including Merkle proof, Verkle proof, etc. Each of these proof methods has its unique strengths and weaknesses. It is also increasing the need for high optimization of cross-chain proofs.
In the long run, the assemblage of proofs achieved by combining the operations submitted by the users could help reduce the cost. Moreover, the L2 solutions help minimize the latency of reading the L1 state. Wallets can be moved to systems with lower Ethereum connections, like L3s or separate chains.
Bulletin argues in favor of keeping the Keystore on either L1 or L2. Furthermore, the blockchain is evolving towards better cross-chain interactions, a strong focus on privacy, and asset/keystore separation.
ERC-6551 Fading the Lines Between Smart Contracts, Wallets & NFTs
Presented recently, ERC-6551 facilitates new opportunities for the digital identity space and Non-Fungible Tokens (NFTs). This Ethereum Improvement Proposal (EIP) was co-authored by the founders of CryptoKitties and allowed NFTs to control ERC-4337-enabled crypto wallets.
ERC-4337 was one of the biggest developments for the wallet space earlier this year.
— Spartan Labs (@TheSpartanLabs) June 16, 2023
But ERC-6551 is building on that to revolutionise the NFT space. ERC-6551 will change the way we view NFTs and digital identities.
Here's how, and why you should care 🧵 pic.twitter.com/dHwmXKDmic
NFTs can now facilitate transactions, store assets, and interact with the Decentralized Finance (DeFi) protocol, similar to a regular non-custodial wallet.
The NFTs powered by the ERC-6551 upgrade would have immense possibilities, allowing the owner to collect Proof-of-Attendance Protocol (POAPs) to display in a robust, tamper-proof, and transparent form. In the realm of decentralized games, such NFTs could be linked with in-game wallets.
However, it’s still a long wait for the “ERC-6551: Non-Fungible Token Bound Accounts” to be released. Nevertheless, looking at the immense possibilities and the suggestions provided by Vitalik Buterin regarding the interoperability between L1 and L2, the market seems hopeful about the evolution of the blockchain ecosystem.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
