Benzinga - Vitalik Buterin, the co-founder of Ethereum (CRYPTO: ETH), expressed that the Bitcoin (CRYPTO: BTC) network needs to adopt scalable solutions such as zero-knowledge rollups (ZK-rollups) to expand beyond just another payment system.
Buterin shared these thoughts during a Twitter Space session led by Bitcoin developer Udi Wertheimer, during which the conversation revolved around Ethereum's trials with scaling, Cointelegraph reported.
A ZK-rollup is a protocol that functions off-chain, atop the Ethereum blockchain and is regulated by Ethereum's on-chain smart contracts.
This technique provides a quicker and more scalable method for verifying transactions without disclosing crucial user details.
Buterin illustrated how Ethereum has over time adopted a range of scaling solutions to enhance throughput.
He mentioned Optimism and Arbitrum as two prominent rollup examples that Bitcoin could potentially learn from. “I think if we want Bitcoin to be more than payments, it needs more scaling solutions,” said Buterin.
Scalability has been a persistent topic of debate between Bitcoin and Ethereum for many years.
Ethereum transitioned from a proof-of-work to a proof-of-stake network, while simultaneously experimenting with various Layer 2 solutions such as ZK-rollups and Plasma.
Meanwhile, the Lightning Network, a Layer 2 solution for Bitcoin, has been pivotal in its scalability.
Recently, the advent of Bitcoin Ordinals has further augmented Bitcoin's network, transforming it into more than just a payment layer.
Also Read: Bitcoin, Ethereum And Now Mantle? New Layer 2 Network Proposes $200M Ecosystem Fund
Buterin praised the emergence of Ordinals, stating it has revived the builder's culture within the Bitcoin ecosystem.
Bitcoin Ordinals represent the newest Layer 2 solution that facilitates decentralized digital art storage on the Bitcoin blockchain.
This feature gained rapid popularity, and by June's end, the trading volume for Bitcoin Ordinals inscriptions surpassed $210 million.
Read Next: 15 CBDCs Expected To Revolutionize Global Economy By 2030: Threat To Bitcoin And Ethereum?
Join Benzinga's Future of Crypto in New York City on Nov. 14, 2023, to stay updated on trends like AI, regulations, SEC actions and institutional adoption in the crypto space. Secure early bird discounted tickets now!
Photo: Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.