21.10.2021

What prevents the rapid development of the world of cryptocurrencies: the opinion of Vitalik Buterin

The main update of the second largest cryptocurrency Ethereum 2.0 is actively promoted by the cryptocurrency community. In the long term, it will give Ether a huge number of new users and applications.

However, one problem in the cryptocurrency world will remain the same – the security of cryptocurrency wallets. The day before, the co-founder of the platform Vitalik Buterin drew attention to it.

Note that the zero phase of eth 2.0 has already been launched, and the security in the new PoS system is at the level. As we found out in early December, the updated blockchain does not tolerate any tricks from validators and in which case it punishes them. In particular, several members of the new network have already lost some of their funds due to intentional or accidental violation of the rules. Read more about the eth 2.0 penalties system in a separate article.

What’s wrong with cryptocurrencies

At the Latin American Bitcoin Conference, Buterin stated that cryptocurrency wallets are still too complex for ordinary users. This opens the door to human-related vulnerabilities and significantly discourages cryptocurrency adoption. Worst of all, people can opt for centralized crypto storage solutions instead of decentralized wallets. That is, rely on cryptocurrency exchanges instead of the same hardware wallets.

Here is Vitalik Buterin’s remark on the situation.

It is still much easier now than it should be to lose $ 200K in case of problems with your wallet. We don’t discuss this issue enough because nobody wants to admit the loss of $ 200,000. After all, if you do this, then supposedly you will look like an idiot.

Here is a transcript of a conversation with Vitalik Buterin. By tradition, we recommend that you look if you understand English by ear.

At this moment, two referents of the #crypto ecosystem in an exclusive interview ⭐ @ VitalikButerin & @aantonop live streaming # LABITCONF2020 pic.twitter.com/ZMK8HkmWrw

– LABITCONF (@laBITconf) December 10, 2020

In other words, the problem of security of funds and an understandable user interface is familiar to everyone, but for some reason no one wants to take it seriously. But it is precisely this obstacle, according to Vitalik, that prevents the spread of cryptocurrencies among ordinary people who are far from the cryptocurrency industry, Decrypt reports.

I think that even if you are a super genius or can be really careful, a system that does not require you to do much to keep funds safe is still the best.

That is, today it is possible to keep your cryptocurrencies safe, but for this you first need to do something. In particular, it is necessary to learn the basics of blockchain operation, as well as understand the importance of private keys and secure storage of the seed phrase. In addition, it is worth getting acquainted with the most common fraudulent schemes of hackers who want to get the coveted combination from the coin holder or force him to download malicious software.

We believe that this takes a lot of time and practice, so beginners really risk their money in this case. Therefore, their frequent choice to store coins on the exchange is not strange. Although experts insist that you need to be responsible for the security of your own funds yourself, which means that all the details of the work of cryptocurrencies will have to be studied in any case.

Ethereum and other cryptocurrencies

Unfortunately, users of the cryptocurrency ecosystem are still vulnerable to phishing attacks and all sorts of scammers. In part, wallets are the weak link in this whole chain of troubles. And this problem needs to be solved, Vitalik is sure.

We believe that Vitalik Buterin’s point of view is absolutely correct. And although three years have passed since the last major stage of growth in the cryptocurrency market, which attracted tens of thousands of people unfamiliar with the niche, security problems are still relevant here. That is, an ordinary person cannot take and start storing funds on a hardware wallet, because for this you need to study a lot of details.

So for now, new users will clearly choose cryptocurrency exchanges to store coins. Although software developers can correct this situation.

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