Vitalik Buterin, co-founder of Ethereum, indicated in an article he wrote which applications of that network excite him the most. Among these, he highlighted its uses as money, decentralized finance (DeFi), identity protocols, decentralized autonomous organizations (DAOs), and other hybrid applications.
The Russian-Canadian developer said in the publication on his blog that a few years ago, his views on Ethereum applications were still abstractbut now it is clearer which specific applications are more useful.
The first application of ether Buterin’s highlights are being money. To put it in context, he talks about his experience in Argentina, where he paid for his consumption in a cafeteria in Buenos Aires with ether (ETH), after the owner of the place recognized him.
This is not the only use given to it in the country, he clarifies, also mentioning its use to “save money, transfer money internationally, make payments for large and important transactions and much more.” In Argentina and many other countries suffering from inflation and limited access to the global financial system, Cryptocurrency is often “a lifeline,” he says.
In contrast, in wealthy countries, cryptocurrencies represent a “more convenient way than traditional banking” for certain transfers and payments, says Vitalik. In addition, they are a way to escape the scrutiny of the states, which invoke the excuse of transitioning to a cashless society, he adds.
Finally, also wrote about the stable coins, “very popular among those users who nowadays pragmatically use cryptocurrencies.” However, he emphasized that the main ones are centralized and listed other stablecoin models, with cryptographic support or with real-world assets, with their advantages and disadvantages.
DeFi, the road to stability according to Vitalik Buterin
The protocols of decentralized finance they represent the second Ethereum application that Vitalik Buterin is most excited about. He defined such installations as “a category that started out honorably but narrowly, turned into some sort of overcapitalized monster that relied on unsustainable forms of yield farming and is now in the early stages of establishing a stable base and improving the safety.” refocusing on some applications that are particularly valuable.”
Under DeFi, Buterin highlighted decentralized stablecoins as the most relevant product. He also mentioned prediction markets, synthetic assets and secondary layers to facilitate transactions with these assets.
Identity, decentralized autonomous organizations and hybrid applications
The remaining three apps you listed Vitalik Buterin start with those protocols related to identity management For the users. These protocols, which include Ethereum Name Services (ENS), Proof of Attendance Protocol (POAP), and Sign In With Ethereum (SIWE) among others, allow you to authenticate and confirm the identity of real people and allow them to access other platforms without having to disclose your personal information.
On the other hand, the DAO They are the fourth app highlighted by the developer. On this, he said they “capture many of the hopes and dreams that people have placed in the crypto space to build more democratic, resilient and efficient forms of government,” though he emphasized that some works and others fail to achieve the proposed objectives.
Next, Buterin classified DAOs according to their central purpose, which is to rely on decentralization for robustness, efficiency, or interoperability. In addition, he analyzed certain specific cases, such as Gitcoin exchanges.
As a last resort, the Ethereum benchmark describes hybrid applications that he finds interesting. These are the ones that “do not operate entirely on-chain, but take advantage of both blockchain and other systems to enhance their trust models.”
Examples of these applications are voice and spare keys (That many exchanges publish these days, as reported by CriptoNoticias). Other potential applications include government records, corporate accounting, video games, and supply chain tracking.
In conclusion, Vitalik Buterin admits that many of these applications that are being built will have to overcome the technological limitations they have and will also have to “overcome the spectrum of privacy concerns”. Another hurdle many face is that “many of the more stable and boring apps aren’t built because there is less enthusiasm and less short-term profit (…) but it is these apps that will be the most valuable to the ecosystem in the future. long-term.”