According to Vitalik Buterin, the top advancements in the Ethereum ecosystem that excite him are money, blockchain identities, decentralised finance (Defi), decentralised autonomous organisations (DAOs), and hybrid applications.
The co-founder of Ethereum writes about his experience using Ether ETH as a form of payment in a café in Argentina in a blog post from December 5:
“The owner instantly revealed to me that he owns ETH and other crypto assets on his Binance account after recognising me when we got in. We inquired whether we could pay with ETH after ordering tea and snacks.”
He added, “The proprietor of the coffee shop complied and gave me his Binance deposit address’s QR code, which I used to send roughly $20 worth of ETH from my phone’s Status wallet.”
The transaction didn’t actually make “pragmatic sense,” Buterin said, because the café visit took place in December of last year when Ethereum was still a proof-of-work system. One-third of the transaction was made up of network costs, and it took some time for the money to transfer.
The chain has grown more stable, and transactions are included much more rapidly as a result of Ethereum’s September transition to proof-of-stake, making it safer to accept transactions with fewer confirmations.
Then, in response to the rise of Defi, Buterin stated that while the sector initially began off honourably, it soon developed into “an overcapitalised monster that relied on unsustainable types of yield farming.”
Defi (Decentralized Finance) is still in the “early phases of establishing down into a stable medium, enhancing security, and focused on a few applications that are extremely beneficial,” the author continued.
The development of blockchain identification techniques like Sign In With Ethereum (SIWE) and its capacity to increase user privacy was then commended by Buterin. With SIWE, you may engage with a website without providing Google or Facebook access to your personal information.
And it’s your choice whether to give them the power to control your account or lock you out, according to Buterin’s writing. Additionally, he said that these methods might be used to demonstrate eligibility in situations like governance or airdrops without jeopardising user privacy.
Though the word “captures many of the ambitions and ideas that people have placed into the crypto space to develop more democratic, robust, and efficient forms of government.
“Buterin said more work has to be done to increase censorship resistance and receptivity to internal organisation. Buterin wrote, citing MakerDAO as an example:
“Over 17 times the market capitalisation of the profit-taking token, MKR, MakerDAO has $7.8 billion in collateral. Therefore, someone could buy up half of the MKR, use it to manipulate the price oracles, and take a significant amount of the collateral for themselves if governance was left to MKR holders without any protections.”
At last, the co-founder of Ethereum mentioned the possibility of fusing votes. He said, “Votes are published to the blockchain, so users have an independent way of voting system to ensure that their votes are get included.”