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In his most recent article, Ethereum co-founder Vitalik Buterin stated that the network should focus on increasing bandwidth scaling rather than reducing latency, pointing out that the principles of physics and the demands of decentralization inherently restrict the rate at which blockchain consensus can function.
His technical analysis characterizes Ethereum as “the world heartbeat” instead of a rapid transaction processor, with Layer 2 networks managing speed-sensitive applications.
Buterin’s writings come in the wake of Ethereum’s recent technical advancements that tackle the blockchain trilemma via zero-knowledge EVMs and PeerDAS technology, along with a surge in on-chain adoption that has resulted in a 110% increase in new addresses since the Fusaka upgrade in December.
Enhancing bandwidth is more secure than minimizing latency
With PeerDAS and ZKPs, we understand how to scale, and potentially we can achieve scaling thousands of times compared to the current situation. The statistics are now significantly more favorable than they were before (e.g., see analysis here, pre and post-sharding…— vitalik.eth (@VitalikButerin) January 8, 2026
Bandwidth Scaling Provides a Secure Path Forward
Buterin clarified that augmenting bandwidth is a more secure technical strategy than shortening block times.
“Through PeerDAS and ZKPs, we have learned how to scale, and we may potentially scale thousands of times compared to the existing conditions,” he noted, emphasizing that no fundamental physics restricts the combination of extreme scalability with decentralization.
Reducing latency, however, encounters more substantial limitations due to the speed of light and the necessity to accommodate nodes in rural areas globally, including residential setups outside of data centers.
The network also needs to uphold censorship resistance and anonymity for validators while ensuring economic sustainability for geographically diverse staking operations.
Buterin recognized that moderate enhancements are still achievable through P2P improvements and a decrease in the number of validators per slot, which could potentially yield 3-6x latency improvements to attain block times of 2-4 seconds.
Beyond those thresholds, the network faces insurmountable physical and economic barriers that cannot be resolved through engineering alone.
AI Applications Require City-Scale Infrastructure
The Ethereum founder contended that artificial intelligence will inevitably necessitate faster infrastructure than any global blockchain can deliver.
“If an AI can process information 1000 times faster than humans, then for the AI, the ‘subjective speed of light’ is merely 300 km/s,” Buterin elaborated, indicating that AI agents communicating at machine speed can only achieve near-instantaneous responses within city-scale distances.
This reality implies that hyper-local applications will necessitate dedicated Layer 2 chains tailored for specific geographic areas or even individual buildings.
While Ethereum’s foundational layer addresses planetary coordination needs, its rollup ecosystem will manage both localized high-speed demands and increased global capacity requirements.
Buterin rejected the notion that Ethereum should evolve into “the world video game server,” instead framing the mainnet as essential infrastructure that provides trustless consensus for applications that operate at higher layers.
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“Ethereum belongs to Terra, and its L2s will cater to both hyper-localized demands in its cities and hyper-scaled requirements worldwide,” he asserted.
Vitalik Buterin claims Ethereum has resolved the blockchain trilemma with ZKEVMs and PeerDAS technology now operational on the mainnet after a decade of development. #Ethereum #Buterin https://t.co/cUzlhhO6Xr
— Cryptonews.com (@cryptonews) January 4, 2026
Technical Constraints Establish Realistic Limits
Buterin’s analysis from 2021 regarding blockchain scaling set definitive limits for node requirements.
Computational power is practically constrained to about 5-10% of CPU capacity for block verification due to the margins for DoS attacks, offline synchronization needs, battery longevity considerations, and background network tasks.
Bandwidth limitations similarly restrict throughput despite advertised connection speeds, with usable capacity falling significantly short of theoretical maxima due to various applications, provider reliability issues, and peer-to-peer network overhead.
Storage needs max out around 512 gigabytes for consumer-grade hardware, with larger databases leading to exponentially higher verification costs as size increases.
This combination creates interaction effects where the costs of accessing databases scale logarithmically with size, indicating that a 4x increase in state could lead to a 6x rise in verification time.
These inherent limitations persist even with technical advancements such as statelessness and state expiry.
Linux Metaphor Frames Ethereum’s Function
In a different post today, Buterin likened Ethereum to Linux and BitTorrent, highlighting how both technologies merge decentralization with widespread adoption.
“Linux is quietly relied upon by billions of individuals and organizations globally,” he mentioned, observing that governments and large corporations depend on open-source infrastructure without compromising its foundational principles.
One metaphor for Ethereum is BitTorrent, illustrating how that p2p network integrates decentralization and mass scale. Ethereum’s ambition is to achieve the same with consensus.
Another metaphor for Ethereum is Linux.
* Linux is free and open-source software, maintaining its core principles without compromise…— vitalik.eth (@VitalikButerin) January 8, 2026
This comparison suggests that Ethereum can cater to both purist users who seek maximum autonomy and enterprise clients looking for robust infrastructure.
“What we refer to as trustlessness, they interpret as prudent counterparty risk minimization,” Buterin noted, underscoring the alignment between crypto ideals and corporate risk management.
Recent network data reflects increasing institutional confidence, with new address creation reaching 292,000 per day following the Fusaka upgrade in December.
Concurrently, major financial institutions, including JPMorgan and Deutsche Bank, are developing Ethereum-based tokenization solutions for implementation across global markets.
The post Vitalik Buterin Explains Why Ethereum Can’t Compete on Speed Alone appeared first on Cryptonews.
