Ethereum’s co-founder, Vitalik Buterin, has shared his five most exciting applications within the Ethereum ecosystem, stressing the importance of decentralization to the industry following the collapse of some centralized exchanges.
Buterin Shares What He’s Excited About
In a lengthy blog post shared on December 5th, Buterin outlined the most exciting applications within the Ethereum ecosystem. According to Buterin, money is “the first and most important” use case for the popular blockchain.
The Ethereum co-founder notes that stablecoins are key to being able to use crypto as a form of money. According to Buterin, the collapse of FTX and other centralized has sensitized crypto users to the merits of decentralization.
The Importance of Decentralization
Buterin is also enthusiastic about the growth of decentralized finance (DeFi). He notes that DeFi is in its “early stages of setting down … improving security, and refocusing on a few applications that are particularly valuable.”
Third on his list is the identity ecosystem, including Ethereum Name Service (ENS). Buterin praised the growth of these projects for helping users interact on the internet without “giving Google (NASDAQ:GOOGL) or Facebook (NASDAQ:META) access to your private information.”
While Buterin is optimistic about decentralized autonomous organizations (DAOs) capturing the hopes and dreams of many, he argues that greater work needs to be done in this area.
The last thing Buterin is excited about is hybrid applications or applications that are not entirely on-chain but use blockchain for certain aspects.
On the Flipside
- Buterin notes that DeFi started great but has become “an overcapitalized monster that relied on unsustainable forms of yield farming.”
Why You Should Care
In the blog post, Buterin shares the journey and successes of Ethereum. He also explains how projects can improve for the next phase of Ethereum and the crypto industry as a whole.
Find out Buterin’s thoughts on governance tokens in:
Ethereum Founder Vitalik Buterin Bashes Governance Token Speculation, Calls it “Pathological”
Read more on his take on the FTX collapse below:
Ethereum (ETH) Co-Founder Vitalik Buterin Says There Are Lessons To Learn From The FTX Collapse