Vitalik Buterin Names 5 Things Happening in Ethereum (ETH) That He’s Excited About

Vitalik Buterin Names 5 Things Happening in Ethereum (ETH) That He’s Excited About

Vitalik Buterin Names 5 Things Happening in Ethereum (ETH) That He’s Excited About

Cryptocurrency pioneer Vitalik Buterin lists five things happening in the Ethereum (ETH) app ecosystem that he thinks are the most exciting for him. In a new blog post, the creator of Ethereum begins his list with “money,” which he believes is the most important application in cryptocurrency. Buterin says that stablecoins are one of the most important aspects of using cryptocurrencies as money. In any case, a successful stablecoin would benefit a variety of money management and savings apps that are already directly beneficial to millions of people today. Second on Buterin’s list is decentralized finance (DeFi), and decentralized stablecoins are probably the most important DeFi product of all.

“In my opinion, decentralized finance is a category that started honorable but limited, grew into some overcapitalized monster that relied on unsustainable forms of performance training, and is now in the early stages of establishing itself as a medium. Improved security and refocused on some particularly useful applications. Decentralized stablecoins are the main DeFi product and will likely remain so forever, but a few others have a significant niche. The creator of Ethereum also says that prediction markets, synthetic assets, and “sticky layers for efficient trading between other assets” are important parts of the DeFi world.

The third thing going on with Ethereum that Buterin is excited about is the identity ecosystem, including the Ethereum Name Service (ENS), which allows users to have custom domain names instead of their usual cryptographic addresses. While powerful, Buterin says the biggest challenge within the identity ecosystem is maintaining privacy. “Data protection will be this ecosystem’s biggest future challenge. The status quo involves putting large amounts of information on-chain, which is “okay until it’s,” and will eventually become uncomfortable, if not risky, for more and more people. The fourth thing Buterin identifies is Decentralized Autonomous Organizations (DAOs).

He uses Gitcoin, a platform where cryptocurrency developers can get paid to work on open-source software, as an example of something that could benefit from being a DAO.

“The following are potential justifications for Gitcoin Grants being a DAO: Since most of its users and funders are Ethereum users, it owns and manages cryptocurrency. 

Secure square funding is best-done on-chain (see the next section on on-chain QF blockchain voting and implementation here), so security risks are reduced when the voting result is fed directly into the system to reassure its users that it will be about five years before good public promoters can start projects now and expect to be rewarded later.

Hybrid applications, or applications that are not entirely on-chain but use blockchain for some features, rank as the fifth most exciting thing for Buterin.

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