Since its all-time high of over $1400 this January, Ethereum has been experiencing a tumultuous, mostly negative year in terms of its price movement. Central to this almost constant downward spiral are certain perceived issues related to scaling. While the sheer volume of reports on this subject can cause a lot of confusion, defining their scaling problem as being two-fold can help.
Firstly, by the numbers, it does not seem that the Ethereum Network is ready to handle a major load of users that would be akin to widespread adoption. For all intensive purposes, it appears that this problem is nowhere close to being solved as it involves gaining the consensus of the majority of the network’s developers to do so.
Secondly, as with all Blockchain projects, Ethereum developers are still trying to figure out the most reasonable formula to attract users en-masse. After about six months of little news on the subject, it appears that today, progress is finally beginning to be made.
As you may already know, ConsenSys Labs is the venture capital fund that has incubated and funded many Ethereum-based projects, including the popular Metamask wallet.
Today, Coindesk announced that ConsenSys is leading the seed round for a Blockchain startup called Aztec, which just might be able to help Ethereum incentivize widespread adoption. To understand why this is the case, it is enough to know one capability that current users of the Ethereum network lack.
In short, the network and its’ transactions are not private. Aztec aims to make this a reality with a proprietary protocol that will implement zero knowledge proofs.
Just in case you are not familiar with what these are, just think about a technical framework that obscures everything about a transaction except its value. Therefore, true privacy is essentially achieved.
As time rolls on, if this framework is implemented, perhaps businesses will feel truly confident in adopting the Ethereum network at scale as Coindesk suggests.
By: BGN Editorial Staff