What’s Next for Smart Contracts?
Decentralization and scalability are currently at odds, but developers are searching for ways around this. Just last week, Ethereum founder Vitalik Buterin said the network is a bit too slow for most mainstream applications, but his team is actively looking for solutions.
“Bitcoin is processing a bit less than three transactions per second,” Buterin said. “Ethereum is doing five a second. Visa does thousands a second. Most stock exchanges do hundreds of thousands a second.”
He added that Ethereum’s current speed works fine for most niche applications, but it’s a hindrance to widespread adoption of blockchain by large enterprises. When asked how long it would take Ethereum to reach “Visa scale,” Buterin said he expected the network to be ready in the next two years.
Key Considerations Before Getting Started
It’s important to remember that smart contracts and other blockchain solutions aren’t a silver bullet. The technology solves a lot of problems we’re currently facing with data security, privacy, and interoperability, but it isn’t the right fit for every problem. In future blog posts, we’ll give you tips on how to know if blockchain is right for your project.