#cryptocurrency #Ethereum #DeFi #DAO #Buterin #TheMerge #Stablecoin
In his interview with Bankless, Ethereum co-founder Vitalik Buterin revealed what he sees as huge opportunities for crypto investors in 2023.
Cryptocurrencies and Ethereum
In times of crisis, cryptocurrency assets became a lifeline for many countries, especially for Ukraine after the massive invasion, when the bulk of the country’s donations were in cryptocurrencies.
For Ethereum, 2022 was both challenging and positive: the Merge was, of course, the long-awaited event for which Etherium was created.
The Merge has reduced energy consumption as much as possible, which is a huge success.
The Merge reduced Ethereum’s energy consumption by ~99.95%.
Source: Ethereum.org
Also a huge success of the merger is the development of a security and speed protocol.
Transactions after the long awaited The Merge became much faster and safer.
In addition, extremely promising, according to Buterin, is the creation of such a stablecoin that is DAO backed and managed by real world assets (RWAs).
“Such stablecoins could combine sufficient reliability, censorship resistance, scale and economic practicality to meet the needs of a large number of real-world users. But for this to work, it would require both real legal work to develop trustworthy issuers and a healthy dose of sustainability-oriented development of DAO governance mechanisms,” – he explained.
Buterin noted the importance of making cryptocurrencies accessible to most people. “If you create a wallet that is accessible to 1 billion people, that is a huge opportunity,” the Ethereum co-founder said.
Roll ups also holds great promise, progress is outlined, but it will take years to implement.
DAO
Source: zn.ua
In order to improve the reliability of decentralized management, the following measures need to be taken, said Buterin:
Management should be carried out not only by management token holders, but also by some additional class of users, so that so-called non-financial management is carried out.
Implement a long enough delay before certain decisions take effect so that it can be noticed by users and understood if something is not going according to plan – “intentional friction”.
Hybrid applications
Many applications continue to use blockchain and other systems to improve trust while not being fully networked. Voting, for example, will take a long time to accept that e-voting can be secure, whether it uses blockchain or not.
Regulated centralized services can be useful for:
- solvency verification
- the accounting of various companies
- gaming
- access authorization tracking
- supply chain applications
- public registries.
Buterin suggested zk-SNARKs for checking the balance sheets of exchanges.
The zk-Rollups protocol based on zk-SNARKs is what Vitaly Buterin calls a priority tool for Ethereum scalability.
DeFi
Source: Investidor Sardinha-R7
This segment, according to the co-founder of Ethereum, is now moving into a stable environment where there will be a particular focus on security and on some particularly valuable applications.
In DeFi, the most significant products will be:
- Decentralized Stablecoins
- Synthetic assets
- Layers for efficient trading between other assets (for on-chain transactions)
- prediction markets
- identification
That a centralized platform would be able to successfully handle all these tasks is questionable for the founder of Ether.
Conclusion
To summarize the above, Buterin believes that the future is promising for those projects that can focus on individual elements and add interoperability.
The main problem that needs to be “worked on” is the privacy issue.
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