5 Things Happening In Ethereum That Vitalik Buterin Is Excited For!
Despite the current crypto bear market, Ethereum co-founder Vitalik Buterin recently voiced his bullishness for the future of Ethereum, arguing that the collapse of major crypto entities like FTX had sensitized crypto users to the merits of decentralization.
What Buterin Looks Forward To
In a blog post he published, Vitalik Buterin explains that money, blockchain identities, decentralized finance (DeFi), decentralized autonomous organizations (DAOs) and hybrid applications are among the top things that he’s most excited for in the Ethereum ecosystem.
What in the Ethereum application ecosystem excites mehttps://t.co/QxCa6EoWDl
— vitalik.eth (@VitalikButerin) December 5, 2022
Buterin explains that in terms of money, crypto offers several advantages in wealthy countries, such as the fact that it’s more convenient to make donations in crypto as well as the fact that cryptocurrencies can represent private digital money in a cashless society. Buterin also talks about the uses of Stablecoins, and how they also have convenient properties such as the fact that they’re resistant to censorship and interact well with other on-chain infrastructure like decentralized exchanges.
Buterin then goes on to talk about Decentralized Finance, or DeFi, which he describes to be “a category that started off honorable but limited, turned into somewhat of an overcapitalized monster that relied on unsustainable forms of yield farming, and is now in the early stages of setting down into a stable medium.”
Buterin claims that decentralized stablecoins are the most important DeFi product, but other important ones in his eyes include prediction markets, major stock indices and real estate, as well as layers for efficiently trading between other assets.
Next, Buterin praised the rise of blockchain identification methods, in which protocols can help in proving eligibility while not compromising the users personal data. “The big future challenge for this ecosystem is privacy.” Buterin wrote.
Vitalik then goes on to talk about DAO, which he says has given the crypto community a lot of hope for building more democratic and efficient forms of governance. Despite this, Vitalik points out that there’s still a lot of work that needs to be done to improve DAOs, using MakerDAO as a main example.
“MakerDAO has $7.8 billion in collateral, over 17x the market cap of the profit-taking token, MKR. Hence, if governance was up to MKR holders with no safeguards, someone could buy up half the MKR, use that to manipulate the price oracles, and steal a large portion of the collateral for themselves.” Buterin wrote.
Finally, Vitalik talks about “Hybrid applications” where he describes the potential of mixing both blockchains and other systems to improve their trust models. The other systems he suggests could be mixed in with the Ethereum blockchain include voting systems, Government registries, Tracking access authorization and more.
Ethereum’s Next Move
Since Ethereum’s major move to Proof-of-stake a couple of months ago, the next major anticipated update within the Ethereum blockchain will be the “Shanghai hard fork” scheduled for sometime in the second half of 2023.
This next hard fork is expected to make the blockchain more scalable.