On December 5, Ethereum co-founder Vitalik Buterin gave his thoughts on the number of use cases built and deployed on the Ethereum blockchain. Out of the many applications, he chose his top five, which he described as what excites him the most.
Vitalik Buterin’s opinion on Ethereum
According to Vitalik Buterin, just a few years ago, his opinion on what Ethereum and blockchains could bring to the world was extremely abstract. But now, it’s no longer about unexplored ideas, but about those that are already underway.
What in the Ethereum application ecosystem excites mehttps://t.co/QxCa6EoWDl
– vitalik.eth (@VitalikButerin) December 5, 2022
Applications centered on the use case of the “silver” are Vitalik Buterin’s favorite use cases built on Ethereum. Vitalik Buterin insists on the validity of the famous mergewhich allowed for faster transactions on the network and lower fees. Vitalik Buterin also adds:
“Scaling technologies such as optimistic rollups and ZK are advancing rapidly. Social recovery and multi-sig wallets are becoming more practical with account abstraction. These trends will take years to emerge as the technology develops, but progress is already being made.”
DeFi and Digital Identity
DeFi and digital identity are the other two use cases that have been widely adopted within a few years. Speaking about the growing dominance of DeFi in the crypto-currency market, Vitalik Buterin also made a point about stablecoins, stating, “Decentralized stablecoins are, and probably always will be, the most challenging product“.
When it comes to identity platforms, Vitalik Buterin seems to be optimistic about the technology, but does not have the same opinion about the platforms that build it. According to Vitalik, centralized efforts to achieve digital identity are not the right way to work on such products; instead, they require decentralized tools to build them from scratch.
However, he praised the developments surrounding ENS, SIWE, PoH, POAPs and other services built on the identity ecosystem.
DAOs and hybrid applications
Vitalik Buterin applauds the growth that has been seen in these two areas and looks forward to further iterations and developments to improve productivity. In Vitalik’s own words:
“DAO“is a powerful term that captures many of the hopes and dreams that people have put into the cryptographic space to build more democratic, resilient and effective forms of governance.
Speaking of DAOs, the Ethereum co-founder referred to the DAO Maker, which has “7.8 billion in collateral, more than 17 times the market capitalization of the profit-taking token, MKR“. Vitalik Buterin thus points out that if governance were handed over to MKR holders without collateral, someone could buy half of the MKR and use it to manipulate price oracles, and thus steal a large portion of the collateral for themselves.
While the same thing has happened with other small projects and Maker has been able to protect itself from such a catastrophic event, Vitalik Buterin is confident that future developments will mitigate the irregularities over time.
Vitalik Buterin also noted that while there are many applications that are not entirely on-chain, they are leveraging both blockchains and other systems to improve their trust models. These are mostly hybrid applications and the “voting” is an excellent example of this technique.