The co-founder of Ethereum published a post about three “major technical innovations” that are necessary to guarantee the success of the network of the second largest cryptocurrency by capitalization.

Vitalik Buterin said that the developers continue to work on scaling Ethereum, as it is necessary to improve the security of cryptocurrency wallets and improve the operation of privacy measures. If this is not done, then the stability of Ethereum can be undermined.

The blockchain co-founder noted that scalability has improved significantly in recent years thanks to second-layer networks. However, most of the transactions still take place on the basis of the main network of the project. Accordingly, second-level solutions need to develop and attract developers. Otherwise, Buterin believes, the network of the second cryptocurrency will face a significant increase in fees, and this will encourage users to use other networks.

“Without scaling, Ethereum will lose as each transaction costs $3.75 and could go up to $82 in case of a new bull trend. And, of course, every project that strives for mass adoption will simply forget about the blockchain, using more centralized solutions,” complains Vitalik Buterin.

It is necessary to improve the security of cryptocurrency wallets, because if users cannot simply and safely store assets, they simply will not use such a solution. One option would be to use wallets with social asset recovery features (where multiple users can team up to recover assets on a hacked wallet). Finally, Buterin called for more privacy features, such as adding support for “hidden addresses.”

Earlier, the Ethereum co-founder said that when using wallets with multi-signatures, you need to carefully choose the custodians of signature data.