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Binance CEO Says Blockchain Scalability Problem Already ‘Largely Solved’, but Vitalik Disagrees

Changpeng Zhao Co-Founder and CEO of Binance, said on Wednesday (August 21) that although he likes Vitalik Buterin and Ethereum, blockchain scalability is “a largely solved problem for newer blockchains (for now). However, Vitalik disagrees with this view.

CZ’s comments about blockchain scalability came in response to what Vitalik said on this subject in an interview with The Star, Canada’s largest online news outlet, which was published on Monday (August 19).

During this interview, Vitalik was asked what are “the roadblocks to more widespread adoption of cryptocurrencies.” He replied:

“Scalability is a big bottleneck because the Ethereum blockchain is almost full. If you’re a bigger organization, the calculus is that if we join, it will not only be more full but we will be competing with everyone for transaction space. It’s already expensive and it will be even five times more expensive because of us. There is pressure keeping people from joining, but improvements in scalability can do a lot in improving that.”

He then explained how scalability could be improved:

“The main problem with the current blockchain is this idea that every computer has to verify every transaction. If we can move to networks where every computer on average verifies only a small portion of transactions then it can be done better.”

Then, on Wednesday, CZ sent out the following tweet:

Within a couple of hours, Vitalik replied to CZ’s tweet, saying that he disagreed with this view:

Vitalik then went on to say that he was getting “more and more pessimistic” about layer 2 scalability solutions (such as Raiden Network):

Another person who replied to CZ’s tweet was Larry Sermak, The Block’s Director of Research and Analysis, who said that agreed that newer blockchains such as EOS have better scalability, this comes as a result of sacrificing “centralization and censorship resistance”:

What do you think?

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Written by Marjorie Contreras

I Love math & how math will help evolvable the new technology. After graduating as Engineer, I start learning about cryptography & blockchain programs. In order to perfect my skills and explore my passion for the blockchain industry, I have been working with many new startups which gave me new exposure in blockchain marketing and startup management.I am eager to join the next companies that I believe in and help them grow. Fin-Tech is where I am stationed at the moment. When I feel that I will be ready, I will move on to other industries and implement disruptive technologies over there so that out-dated systems and ideas will die out and these particular industries shall rise and will give to the community the best that they can present, create and implement.

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