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The 5 Ethereum applications Vitalik Buterin is most excited about

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Vitalik Buterin, co-founder of Ethereum, expressed in an article of his authorship what applications of this network he is most excited about. Among them, he highlighted its use as a currency, decentralized finance (DeFi), identity protocols, decentralized autonomous organizations (DAOs) and other hybrid applications.

The Russian-Canadian developer expressed in the. publication on his blog that a few years ago his views on Ethereum applications were still abstractbut that he now has clearer ideas about what specific uses are most useful.

The first application of Ethereum that Buterin emphasizes is that of being money. To illustrate this, he recounts his experience in Argentina, where he paid for drinks in a Buenos Aires café with ether (ETH) after the café owner recognized him.

This is not its only use in the country, he clarifies, and also cites its use to “save money, transfer money internationally, make payments for large and important transactions, and much more.” In Argentina and many other countries that suffer from inflation and have limited access to the global financial system, Cryptocurrencies are often “a lifeline.”.

In rich countries, however, cryptocurrencies are a “more convenient way than traditional banks” for some transfers and payments, Vitalik says. They are also a way to escape the supervision of states, which use the excuse of transitioning to a cashless society, he adds.

Finally, also wrote about the stable coinswhich are “very popular among the very users who make pragmatic use of cryptocurrencies today.” However, he emphasized that the main ones are centralized and mentioned other stablecoin models, with cryptographic support or real-world assets, with their advantages and disadvantages.

The three categories of stablecoins differentiated by Vitalik Buterin. Source: Vitalik.eth.

DeFi, the road to stability according to Vitalik Buterin

The protocols of decentralized finance represent the second application of Ethereum that Vitalik Buterin is most enthusiastic about. He described such platforms as “a category that started out honorably but limited, became a kind of overcapitalized monster that relied on unsustainable forms of yield cultivation, and is now in the early stages of establishing itself in a stable environment, improving security and refocusing on a few particularly good applications.”

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Among the DeFi, Buterin stressed that decentralized stablecoins are the most relevant product.. He also named prediction markets, synthetic assets, and secondary layers to facilitate transactions with these assets.

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Identity, decentralized autonomous organizations, and hybrid applications.

The other three applications listed Vitalik Buterin Start with protocols related to identity management. for users. These protocols, including Ethereum Name Services (ENS), Proof of Attendance Protocol (POAP), and Sign In With Ethereum (SIWE), allow users to authenticate and attest to the identity of real people and give them access to other platforms without revealing their personal information.

On the other hand, the DAO are the fourth application highlighted by the developer. Of these, he said they “capture many of the hopes and dreams that people have placed in the cryptocurrency space to build more democratic, resilient and efficient forms of governance,” although he stressed that Some work and some do not achieve their goals..

Next, Buterin classified DAOs according to their core purpose, which may be to appeal to decentralization for robustness, efficiency, or interoperability. In addition, he analyzed some special cases, such as Gitcoin grants.

The different types of DAOs and their conveniences, according to Buterin. Source: Vitalik.eth.

Bottom line, Ethereum’s contact person described the hybrid applications that he finds interesting. These are those that “do not work completely on-chain, but leverage both blockchain and other systems to enhance their trust models.”

Examples of such applications are voting and proof of reservation. (which many exchanges publish these days, as reported by CryptoNews). Other possible applications include government records, corporate accounting, video games, and supply chain tracking, among others.

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In conclusion, Vitalik Buterin admits that many of these applications in the pipeline must overcome the technological limitations they possess and will also have to “overcome the specter of privacy issues.” Another obstacle that many face is that “many of the more stable and boring apps are not being built because there is less enthusiasm and less short-term gain (…) but it is these apps that will be most valuable to the ecosystem in the long run.”

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