{"id":71122,"date":"2022-12-07T12:57:52","date_gmt":"2022-12-07T10:57:52","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=71122"},"modified":"2025-09-08T06:28:27","modified_gmt":"2025-09-08T03:28:27","slug":"vitalik-buterin-identifies-five-exciting-vectors-for-ethereums-development","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/vitalik-buterin-identifies-five-exciting-vectors-for-ethereums-development\/","title":{"rendered":"Vitalik Buterin identifies five exciting vectors for Ethereum\u2019s development"},"content":{"rendered":"<p>Ethereum co-founder Vitalik Buterin <a href=\"https:\/\/vitalik.eth.limo\/general\/2022\/12\/05\/excited.html\">described<\/a> five directions for developing the ecosystem of the second-largest cryptocurrency that inspire him.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cMy admiration for Ethereum is now more closely tied to certain categories that have already proven themselves and are only getting stronger,\u201d<\/em> he said.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\"><strong>Money<\/strong><\/h2>\n<p>According to Buterin, cryptocurrency acts as a lifeline in the poorest countries. After <a href=\"https:\/\/u1f987.com\/en\/news\/ethereum-activates-the-merge-blockchain-shifts-to-pos\">The Merge<\/a> transactions became faster and safer.<\/p>\n<p>Social recovery and <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-multisignature-what-is-a-ring-signature\">multisig<\/a>-wallets are becoming increasingly practical. There remains great promise for <a href=\"https:\/\/u1f987.com\/en\/news\/what-are-rollups-and-how-do-they-scale-ethereum\">rollups<\/a>. There is progress, but it will take years to realise it, he added.<\/p>\n<p>For wealthy nations, cryptocurrencies appear to be a more convenient option than fiat.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThey can combine the advantages of digitalisation with respect for privacy \u2014 the very thing cash possesses,\u201d<\/em> he explained.<\/p>\n<\/blockquote>\n<p>Buterin noted that centralized <a href=\"https:\/\/u1f987.com\/en\/news\/what-are-stablecoins\">stablecoins<\/a> do not align with the values of crypto-punks. In his view, the middle ground in this segment could be supported by <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-dao-decentralised-autonomous-organisation\">DAOs<\/a> and asset-backed real-world assets (RWA) \u201cstablecoins\u201d.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cSuch stablecoins could combine sufficient reliability, censorship-resistance, scalability and economic practicality to meet the needs of a large number of real users. But for this to work, there would need to be real legal work on developing reliable issuers, and a healthy dose of sustainability-focused DAO governance mechanisms,\u201d<\/em> he explained.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\"><strong>DeFi<\/strong><\/h2>\n<p>The Ethereum cofounder believes the DeFi space is transitioning from a \u201csuper-capitalised monster on steroids <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-yield-farming\">yield farming<\/a>\u201d to a stable environment where safety is emphasised and a few most valuable applications matter most.<\/p>\n<p>In DeFi, the most important products will be:<\/p>\n<ul class=\"wp-block-list\">\n<li>decentralised stablecoins;<\/li>\n<li>prediction markets;<\/li>\n<li>synthetic assets (derivatives on stock indices and real estate may appear);<\/li>\n<li>layers for efficient on\u2011chain trading between other assets (to enable on\u2011chain operations).<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\"><strong>Identity<\/strong><\/h2>\n<p>Buterin doubts that an attempt to create a centralized platform to solve all aspects of this task would be successful.<\/p>\n<p>In his view, the future lies with standalone projects focused on individual elements and adding extra capabilities for interaction. The privacy question will be a challenge, which will have to be \u201cworked on.\u201d<\/p>\n<h2 class=\"wp-block-heading\"><strong>DAOs<\/strong><\/h2>\n<p>To improve reliability in decentralized governance, the following innovations are needed:<\/p>\n<ul class=\"wp-block-list\">\n<li>a kind of non-financial governance or a two\u2011chamber hybrid, where decisions are made not only by governance-token holders but also by some other class of users;<\/li>\n<li>\u201cdeliberate friction\u201d \u2014 certain types of decisions could take effect only after a sufficiently long delay, giving users time to see if something is going wrong.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\"><strong>Hybrid applications<\/strong><\/h2>\n<p>Buterin believes many applications are not fully networked, but they still leverage the advantages of blockchains and other systems to improve their trust models.<\/p>\n<p>As an example, he cited voting. Buterin acknowledged that countries and voters will need a long time to acclimate to the security guarantees of electronic voting, whether or not it uses blockchain.<\/p>\n<p>\u201cVerifiable centralized services\u201d may find use in many scenarios, including:<\/p>\n<ul class=\"wp-block-list\">\n<li>proof of solvency;<\/li>\n<li>government registries;<\/li>\n<li>corporate accounting;<\/li>\n<li>games;<\/li>\n<li>applications in supply chains;<\/li>\n<li>tracking of access authorization.<\/li>\n<\/ul>\n<p>Earlier, Buterin<a href=\"https:\/\/u1f987.com\/en\/news\/vitalik-buterin-proposed-using-zk-snarks-to-verify-exchange-reserves\"> proposed<\/a> using <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-zero-knowledge-proof\">zk-SNARKs<\/a> to verify exchange balances. Earlier, the zk-Rollups protocol based on zk-SNARKs he<a href=\"https:\/\/u1f987.com\/en\/news\/vitalik-buterin-explains-the-role-of-zk-rollups-in-ethereum-scalability\"> called<\/a> a priority tool for solving Ethereum\u2019s scalability problem.<\/p>\n<p>The updated network roadmap <a href=\"https:\/\/u1f987.com\/en\/news\/vitalik-buterin-unveils-updated-ethereum-development-roadmap\">envisions full integration<\/a> of zero-knowledge proof technology.<\/p>\n<p>Read ForkLog\u2019s bitcoin news in our <a href=\"\/\/telegram.me\/forklog\u201d\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ethereum co-founder Vitalik Buterin described five directions for developing the ecosystem of the second-largest cryptocurrency that inspire him.<\/p>\n","protected":false},"author":1,"featured_media":71123,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[46,1138,200],"class_list":["post-71122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-ethereum","tag-opinions","tag-vitalik-buterin"],"aioseo_notices":[],"amp_enabled":true,"views":"26","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=71122"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71122\/revisions"}],"predecessor-version":[{"id":71124,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71122\/revisions\/71124"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/71123"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=71122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=71122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=71122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}