Blockchain Shifts Toward Secure, Cryptographic Computational Foundation

Vitalik Buterin, co-founder of Ethereum, discussed the future of blockchain technology at the 12th Global Blockchain Summit in Shanghai. He stated that blockchain is transitioning from a ledger to a secure computational foundation based on cryptographic techniques.

According to Buterin, over the past 15 years, the characteristics required by blockchain have undergone significant changes. While it has become more accessible and global, with enhanced security and neutrality, public wallets pose challenges to privacy. With powerful data analysis and AI now available, individual anonymity is no longer sufficient for ensuring privacy.

Buterin highlighted the limitations of traditional blockchain methods, where nodes repeat computations to verify transactions and ensure compliance with rules. This approach hampers scalability and imposes constraints on privacy due to the sharing of verification information. He cited the development of zero-knowledge proofs (ZKPs), such as SNARK and STARK, as a significant technological advancement over the past decade.

Zero-knowledge proofs enable participants to generate cryptographic evidence that a computation was performed correctly without revealing any details about the process or inputs. This allows other participants to verify the outcome without having to repeat the entire computation, thereby improving scalability and privacy simultaneously.