Vitalik Buterin reveals exciting use cases for Ethereum ecosystem
Vitalik Buterin recently talked about the present Ethereum ecosystem that comprises money, DeFi, DAOs and more.
Ethereum co-founder Vitalik Buterin published a blog post to illustrate use cases that excite him about the Ethereum ecosystem. The post looked at money, DeFi, digital identity, DAOs, and hybrid apps showcasing the breadth of utility within the Turing complete blockchain network.
What in the Ethereum application ecosystem excites mehttps://t.co/QxCa6EoWDl
— vitalik.eth (@VitalikButerin) December 5, 2022
Among the apps he prefers in the Ethereum ecosystem are those based on the use case of money. According to Vitalik, these apps help to ease donations and, in most cases, avail safety against de-platforming.
The Ethereum co-founder also talked about stablecoins, believing they have many use cases as they are open to anyone, resistant to censorship, and interact well with on-chain infrastructure like DEXes. In comparison, he maintains that stablecoins like USDC work and their stability is dependent on the macroeconomic and political stability of the United States.
Buterin also thinks that non-pegged stablecoin RAI can withstand all these risks and has a negative interest rate. Further, Vitalik argued that DAO-governed Risk Weighted Assets (RWA) backed stablecoins could be viable if they combine scalability, robustness, and economic practicality while resisting censorship.
On DeFi and Digital Identity
The co-founder hinted that the world of DeFi and Digital Identity has, over time, enjoyed overwhelming adoption. In addition to stablecoins, he emphasized prediction markets, major stock indices, and layers for efficiently trading other assets and real estate.
Appraising the growth of digital identity, the co-founder said the trend helps to facilitate user privacy. He referenced the Sign In With Ethereum (SIWE) as an effective identity method.
Vitalik Buterin believes there are two questions to answer
- What kinds of governance structures make sense, and for what use cases?
- Does it make sense to implement those structures as a DAO or through regular incorporation and legal contracts?
The Ethereum co-founder believes decentralization is essential for robustness, efficiency, and interoperability.
On Hybrid Apps
Hybrid applications that integrate blockchains with other systems to strengthen trust models are found in voting, games, government registries, corporate accounting, and supply chain management.
Buterin also talked about several challenges on Ethereum in the form of scalability, long transaction times, and unsafe wallets. He discussed decentralized solutions for holding funds, ERC-4337 and account abstraction wallets, and Rollup technology to improve scalability.
Meanwhile, in a closing remark, Buterin stressed the need for developers to give preferential treatment to projects with long-term value propositions than those on short-term profits.
These revelations come barely a few weeks after he released an updated roadmap for the Ethereum ecosystem.
Updated roadmap diagram! pic.twitter.com/MT9BKgYcJH
— vitalik.eth (@VitalikButerin) November 4, 2022
Notably, the network’s roadmap additions are geared towards enhancing censorship resistance and decentralization of the Ethereum network. For example, a new category, Scourge, was added to the updated roadmap, joining the likes of the Merge, Surge, Verge, Purge, and Spurge that already exist.