On Dec. 5, Ethereum co-founder Vitalik Buterin, came clean with his views on the number of use cases that were being built and deployed on the Ethereum blockchain. Among the many applications, he picked his top five, which he referred to as what “excites” him the most.
Vitalik’s Views On Ethereum
According to Vitalik, even a few years ago, his opinions on what Ethereum and blockchains could do for the world were extremely abstract. But as of now, it’s no longer about the unexplored ideas but the ones already in motion.
What in the Ethereum application ecosystem excites mehttps://t.co/QxCa6EoWDl
— vitalik.eth (@VitalikButerin) December 5, 2022
Apps Based On Money
Apps that center around the use case of “money”, are Vitalik’s most preferred use case built on Ethereum. Vitalik emphasizes on the validity of the famous merge, which has now helped to speed up transactions on the network and also curbing down the fees levied. Vitalik further adds:
“Scaling technology such as optimistic and ZK rollups is proceeding quickly. Social recovery and multisig wallets are becoming more practical with account abstraction. These trends will take years to play out as the technology develops, but progress is already being made.”
DeFi & Digital Identity
DeFi and Digital Identity are his next top use cases that have garnered widespread adoption in a span of a few years. Talking about DeFi’s growing dominance in the crypto market, Vitalik also remarked on stablecoins, stating “Decentralized stablecoins are, and probably forever will be, the most important defi product”.
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Speaking about identity platforms, Vitalik seems to be bullish on the technology but does not have the same view on the platforms building it. In Vitalik’s terms, centralized efforts to achieve digital identity are the wrong way to work on such products; instead, they require decentralized tools to build it from scratch.
However, he praised the developments surrounding ENS, SIWE, PoH, POAPs and other services building on identity-ecosystem.
DAOs & Hybrid Apps
Vitalik applauds the growth that has been seen in these two sectors and envisions further iterations and developments to enhance its productivity. As per Vitalik’s own words:
“DAO” is a powerful term that captures many of the hopes and dreams that people have put into the crypto space to build more democratic, resilient and efficient forms of governance.
While talking about DAOs, the Ethereum co-founder took to Maker DAO, which has “$7.8 billion in collateral, over 17x the market cap of the profit-taking token, MKR”. Hence, Vitalik points out that, if governance was up to MKR holders with no securities, someone could buy up half the MKR and use that to manipulate the price oracles; and in turn steal a large portion of the collateral for themselves.
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Even if the same has happened for other small projects and Maker has been able to safeguard itself from such a catastrophic event, Vitalik is sure that further developments will ease out the irregularities with time.
Vitalik also noted that, even though there are many applications that are not entirely on-chain, they take advantage of both blockchains and other systems to improve their trust models. These are mostly hybrid applications and “voting” for one is a great example that makes use of this technique.