- Buterin shares article titled “What in the Ethereum application ecosystem excites me.”
- The article talks about different Ethereum and blockchain applications utilized in various projects.
- Buterin talks about money, DeFi, the identity ecosystem, DAOs, and Hybrid applications.
Yesterday, Vitalik Buterin, the founder of Ethereum, tweeted about his article titled “What in the Ethereum application ecosystem excites me.” The article talks about the different features of Ethereum and the application of the technology utilized in various projects.
Realizing the evolution of the crypto world, Buterin begins the article talking about the wonders of how Ethereum and blockchain are utilized for various applications. Buterin’s post talks about the five specific categories of applications, which the Ethereum founder believes are getting stronger.
The five categories of applications in blockchain and Ethereum, Buterin talks about are Money, DeFi, the identity ecosystem, DAOs, and Hybrid applications.
In the case of money, Buterin explains how cryptocurrency can be used to conduct simple transactions such as buying a cup of coffee with ETH. But, Buterin pinpoints that the fee was high and it took time.
While crypto is volatile, Buterin mentions that stablecoins have become a remedy. Though stablecoins were meant to have both the features of decentralization and price stability, the most popular stablecoins such as USDC, USDT, and BUSD are centralized based.
For DeFi, Buterin explains that decentralized finance is a category that started off honorable but turned into somewhat of an “overcapitalized monster” that relied on unsustainable forms of yield farming.
Furthermore, Buterin further explains that DeFi is now in the early stages of setting down into a stable medium, improving security, and refocusing on a few applications that are particularly valuable.
When it comes to the identity ecosystem, Buterin explains that blockchains are valuable for identity applications because of their institution-independent nature and the interoperability benefits that they provide. The big challenge of this ecosystem is privacy.
Moreover, Buterin explains that DAO is a smart contract that is meant to represent a structure of ownership or control over some asset or process. The Ethereum founder also mentions that there are many hybrid applications that make use of both on-chain and other systems.
Concurrently, Buterin concludes by stating that many applications are seeing only limited usage due to the limitations of present-day technology.
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