Vitalik Buterin Urges Ethereum to Innovate Beyond DeFi

Vitalik Buterin Ethereum

KANALCOIN NEWS – On the occasion of the Ethereum conference in Paris, Vitalik Buterin urged the company’s development to go beyond the DeFi program. Vitalik Buterin is the co-founder and lead developer of this smart platform company.

Buterin conveyed the insistence on innovation as one of the main points in the key speech of the Ethereum Community Conference (EthCC) held in Paris (19-25 July 2021). The conference marked the completion of the second layer of scaling for this Blockchain-based intelligent platform.

What Buterin meant in his statement was to direct the development of programs that were not only focused on decentralized finance. Buterin talked about combining financial and non-financial elements in the Ethereum ecosystem.

As reported by Cointelegraph’s, Buterin argues that non-financial programs could be the main goal of Ethereum development in the future.

According to Buterin, today the company is dominated by financial applications or so-called DApps. This has shaped Ethereum’s image as a major DeFi platform. Meanwhile Buterin believes that this platform is not limited to that.

Several other non-financial application models can be tested. For example, decentralized social media, identity verification and authentication, and retroactive public goods funding programs.

The last example has begun to be developed by Ethereum. In his company’s official blog, Buterin writes about second layer scaling solutions. Optimistically pledged to fund open source development through a retroactive funding protocol.

Why DeFi Becomes Buterin’s Spotlight?

There are two big reasons that make financial programs so influential for the company’s movement.

First, Buterin considers finance to be simply “the area where technology is centralized in the most annoying way”. It recognizes that finance offers a greater domain for decentralization than any other centralized industry. However, decentralization is feasible.

For example, in email delivery work. With the current Blockchain system, a person can send a centralized email and the recipient can reach it in 1 second. The messages in it can still be reached by the intelligence agencies of various countries. However, that doesn’t change the fact that the email was sent at an incredible speed.

Second, Buterin recognizes the prevalence of high costs in pushing the sector towards financial applications.

Buterin says, “Degens can pay for it; monkeys can pay for it; orangutans can pay for it. However, if we start talking about decentralized social media, where every tweet becomes NFT, it won’t work if you only have a $5.22 transaction fee.”

It is this challenge of high transaction fees that is the task of the second layer of Ethereum. Layer two network ecosystems are being directed to be a solution to the high cost problem of implementing Blockchain.

Buterin urged the enterprise ecosystem to expand beyond just creating tokens that help trade other tokens. Because only focusing on developing financial applications has a systemic risk of long-term product decline.


Muhammad Zaki Fajrul Haq
Author: Muhammad Zaki Fajrul Haq

Follow me at @mzfajrulhaq (Instagram) or @ZakiFajrul (Twitter).

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