Vitalik Buterin Wants to Redesign Ethereum, Here's How It Will Affect Everyone

Ethereum's cofounder Vitalik Buterin has proposed an ambitious redesign for the Ethereum network, which, if implemented, could have profound implications for users and developers. Speaking at Devconnect in Turkey, Buterin outlined a strategy to enhance Ethereum staking and address performance issues that have been persistent thorns in the network's side.

Buterin's vision includes integrating private mempools and ERC-4337. Private mempools could offer users enhanced privacy and security by allowing them to conduct transactions without exposing their intentions to the public mempool where miners could see and potentially exploit them. ERC-4337 refers to account abstraction, allowing users to have more sophisticated control over their accounts, with operations like multisig wallets becoming easier to implement and more secure.

Vitalik Buterin stated at the Devconnect in Turkey that he plans to redesign Ethereum staking and solve problems affecting performance. He recognizes the UTXO payment model and hopes to integrate private mempools, ERC-4337, code pre-compilation, ZK-EVMs and liquid staking in…— Wu Blockchain (@WuBlockchain) November 27, 2023

Code precompilation is another feature Buterin is keen on integrating. This could potentially increase the efficiency of smart contract deployment, making them quicker and cheaper to execute by preprocessing some elements of the code.

Liquid staking, a process that allows stakers to liquify staked (or locked) assets, is a feature Buterin wants to see improved. He has expressed concerns over the centralization of liquid staking solutions, which could be a risk for the network if too much control is in the hands of a few entities like Lido Finance. Decentralizing this aspect could democratize the staking process, giving more users the chance to participate without relinquishing liquidity.

The redesign Buterin proposes would likely make Ethereum more scalable, secure and efficient. These changes could lower the barriers to entry for new users and developers, fostering a more inclusive and robust ecosystem. The exact impact on Ethereum's price and the broader crypto market is speculative, but typically, improvements that address fundamental issues and enhance usability bode well for the network's value and adoption.