The popular businessman Vitalik Buterin is the co-founder of the famous coin Ethereum. Vitalik Buterin, a co-founder of Ethereum (ETH), wrote on “what in the Ethereum application ecosystem interests” him in his most recent blog post. These topics included voting, stablecoins, money, identity, and stablecoins.
He first said that there aren’t many concepts left unexplored today, which has caused him to change his mind about Ethereum: “My excitement about Ethereum is now centred in a few particular categories of applications that are showing themselves now, and are just becoming stronger.”
- Money
Cryptocurrency frequently acts as a lifeline in nations with weak ties to international financial institutions and persistently high inflation, according to Buterin.
The blockchain is more reliable and includes transactions “much more fast” after Ethereum’s Merge. This increases the safety of accepting transactions with fewer confirmations.
In wealthier nations, the more extreme use cases, including surviving high inflation and everyday financial activity, are not applicable, yet cryptocurrency still has significance in these regions. One benefit is that, in Buterin’s words, it is “much more convenient than traditional banking.”
In the age of the transition to a “cashless society,” which is being used by governments to expand financial monitoring, there is also the idea of cryptocurrency as private money.
- Decentralised finance (DeFi)
According to the co-founder of Ethereum, DeFi began “honourable but restricted” and over time “developed into somewhat of an overcapitalised monster that relied on unsustainable types of yield farming.”
However, with a focus on enhancing security and a few significantly useful applications, it has already begun to “set down” as a stable medium.
- The Identification Ecosystem
When we talk about “identification,” we may also refer to things like names, simple authentication, attestations, and other forms of personhood documentation.
Buterin asserted that an attempt to build a centralised platform to carry out all of “these activities from scratch” will fail, adding:
“An organic approach, where numerous teams focus on specific tasks that are individually beneficial, then add more and more interoperability over time, is what is most likely to succeed.”
- DAOs
When it comes to the term “decentralised,” which, according to Buterin, is occasionally used to describe:
An implementation of a governance structure is decentralised if it is built on a decentralised structure like a blockchain and is not reliant on a single nation-state legal system. Decentralised governance structures are those whose decisions are made by a broad number of participants.
He continued: “One way to think about the difference is that a decentralised implementation protects against attackers on the outside, whereas a decentralised governance structure protects against attackers on the inside.”
- Hybrid Software
This is the last topic Buterin covered. He asserted that even while many apps aren’t totally on-chain, they use other systems like blockchains to strengthen their trust models.
Voting, which inherently demands the highest assurances of censorship resistance, auditability, and privacy, was cited as a “wonderful example” by the speaker. He claimed that systems like MACI efficiently integrate blockchains, ZK-SNARKs, and a little amount of centralisation for scalability and resilience to coercion.