In general some of the hardest problems / known weaknesses of the protocol at this stage is:
* Client bootstrap - what entry nodes to connect to? (saurik answered this in response to other questions)
* Current software connects to Ethereum nodes using an Ethereum light client, as Ethereum network traffic is not hardened it can easily be fingerprinted and blocked by GFW and others.
* Difficulty of medallion Proof-of-Work, basically it boils down to that if it's easy to join the network as a relay or exit node, then it's easy for a large attacker to join with many nodes. Making it harder for attackers to join / maintain active position in the network also makes it harder / more expensive for regular nodes.
* Payment anonymity. Currently it's as pseudo-anonymous as regular Ethereum transactions. Whitepaper has some discussion on future improvements there.
(2) The main driver here is economics - relay and exit nodes are paid by users for their bandwidth and relay of traffic. This forms an emergent, decentralized market that hopefully will find an equilibrium where there is plenty of overlay/secure bandwidth available at what the market prices it.
So far our models and simulations on this are limited, so we cannot make strong statements on how this will scale in practice. However, if we look at Bitcoin/Ethereum transaction (miner) fees, we see a live example of a working decentralized market that is very responsive and adjusts to supply/demand without any central intervention/control.
In general some of the hardest problems / known weaknesses of the protocol at this stage is:
* Client bootstrap - what entry nodes to connect to? (saurik answered this in response to other questions)
* Current software connects to Ethereum nodes using an Ethereum light client, as Ethereum network traffic is not hardened it can easily be fingerprinted and blocked by GFW and others.
* Difficulty of medallion Proof-of-Work, basically it boils down to that if it's easy to join the network as a relay or exit node, then it's easy for a large attacker to join with many nodes. Making it harder for attackers to join / maintain active position in the network also makes it harder / more expensive for regular nodes.
* Payment anonymity. Currently it's as pseudo-anonymous as regular Ethereum transactions. Whitepaper has some discussion on future improvements there.
(2) The main driver here is economics - relay and exit nodes are paid by users for their bandwidth and relay of traffic. This forms an emergent, decentralized market that hopefully will find an equilibrium where there is plenty of overlay/secure bandwidth available at what the market prices it.
So far our models and simulations on this are limited, so we cannot make strong statements on how this will scale in practice. However, if we look at Bitcoin/Ethereum transaction (miner) fees, we see a live example of a working decentralized market that is very responsive and adjusts to supply/demand without any central intervention/control.