Vitalik Buterin, the co-founder of Ethereum, has shared his thoughts on how cryptocurrencies can be used in everyday life. He provided a clear vision for the practical applications of crypto, moving beyond the hype of memecoins, which he has been criticizing recently.
Also Read: Vitalik Buterin Shares Plans to Improve Ethereum’s Decentralization
Buterin listed several areas where he believes crypto can make a real difference. His focus includes zk reputation/identity/credentials, peer-to-peer cross-border payments with lower fees, decentralized social networks, prediction markets, privacy, enterprise applications via zk validiums, and zk + censorship-resistant voting.
Buterin addressed these points in response to a post on X. The post questioned the dominance of memecoins and highlighted the expanded functionality of crypto. It read:
I understand why memecoins can have a moment. But how is it still the dominant narrative? Every cycle has expanded the functionality and reach of crypto.
The post went on to list the positives of crypto, such as decentralized, tamper-proof money, p2p cross-border payments, programmable money, permissionless financial services, and digital asset ownership. The user expressed frustration with the lack of compelling visions for memecoins, stating, “Sure, they’re entertainment products and a new avenue of monetizing attention. But that doesn’t feel as enduring or inspiring as previous metas.”
He said he was open to changing his mind but felt memecoins were draining energy from the crypto market. Buterin then responded with a list of practical uses for crypto. He emphasized zk reputation/identity/credentials, which can help create secure and private digital identities. Next on Buterin’s list was peer-to-peer cross-border payments. He highlighted that these payments come with much lower fees and are quickly improving in user experience.
Also Read: Vitalik Buterin Cautions Community Against Crypto Scams
Buterin also mentioned decentralized social networks. These platforms can provide a new way to connect without relying on centralized entities that control user data and content. Prediction markets were another area Buterin found promising. He noted that these markets are becoming usable in this cycle and are a great example of a practical crypto application.
Buterin criticizes this cycle’s memecoins
Buterin’s thoughts on this cycle’s memecoins have been made clear over the past week, specifically on celebrity involvement. On June 5, the Ethereum creator shared his views on what makes a celebrity crypto project respectable. He listed three features: having a public-good goal, offering fun mechanics beyond just trading a token, and creating something that lasts more than ten years.
He stressed that projects should aim to have a lasting impact, even if the tokens eventually lose value. Regular businesses and charities achieve this, and crypto projects should strive to meet the same standard.
A quick summary of features that a celebrity crypto project needs to have for me to be more willing to respect it:
— vitalik.eth (@VitalikButerin) June 5, 2024
1. Have some kind of public-good goal that it's serving, other than enriching the celebrity and early adopters. Realistically, either an art project or the…
In another instance, he responded to a community member who asked if he equated finance with “degen memecoin gambling.” The member highlighted the benefits of DeFi, such as positive-sum lotteries, allowing retail to “be the bank/MM,” and making finance transparent through DAOs and blockchains. Buterin simply replied that he completely agrees with these examples.
Cryptopolitan reporting by Jai Hamid
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