Time to build Ethereum beyond DeFi and the focus on pricing

cryptoshitcompra.com/wp-content/uploads/2021/07/It-time-to-build-Ethereum-mas-alla-de-DeFi-y.jpg »alt =» Time to build Ethereum beyond DeFi and the focus on prices: Vitalik Buterin 101 ″ class = »content-img» /> Vitalik Buterin. Source: video screenshot, Youtube / Grand Amphi Théatre

Ethereum (ETH) is more than decentralized finance (DeFi) and pricing approach, said its co-founder Vitalik Buterin. According to him, it is mainly about utility and creation of decentralized services that, ideally, combine finance and non-finance.

Ethereum and projects built on different blockchains are not just about price, as can be deduced from the current events surrounding DeFi. Rather, the goal is to have a crypto space with more public services, more projects and ecosystems that continue to build different types of public services, Buterin said in his presentation at the EthCC conference in Paris, held July 20-22.

Today Ethereum is primarily funded – the current general perception is that it is defined and dominated by DeFi. And that’s not “bad,” Buterin noted, adding that that’s not all Ethereum is trying to do.

He said the vision for Ethereum, and most cryptocurrencies beyond it, “has always been to carry decentralization, minimization of trust, and experimentation of mechanism design well beyond finance.”

This you described is probably the most interesting part of the general purpose blockchain vision.

At this point, there are two main reasons why DeFi is so dominant, according to Buterin:

  1. finance is the area where centralized technology “sucks the most”; Furthermore, as “other centralized things,” which also have problems, continue to grow, these issues also become more important;
  2. Transaction fees have been high, and while some may pay for it, there are areas, such as decentralized media, that cannot function with high fees.

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pricing issue is currently being resolved, Buterin said, again citing rollup packages as one of the solutions, combined with fragmentation to further increase scalability.

So, he said, now is a good time to think of other things to build on Ethereum and move beyond DeFi. Among the interesting non-financial creations that can already be seen are the non-fungible tokens (NFTs), as well as the ENS names, which are technically NFT as well.

As for what can be focused on in the short term, there are two goals that need to be achieved for new projects, for Buterin:

  1. alignment with values: it should be something that the community can do;
  2. needs alignment: it should be something useful to do.

Building the Ethereum social media ecosystem is one of the important things to focus on, says Buterin, as encryption technology can solve a number of major problems plaguing centralized social media: it brings credible neutrality and resistance to disruption. censorship, among other features.

Another thing is to use the Etherum login to access other services, as Google or Twitter allows it. However, these centralized access providers are “the worst of both worlds in terms of centralization and decentralization,” Buterin said. On the other hand, Ethereum logins that are social recovery wallets can potentially outperform centralized and decentralized providers in both self-sovereignty and better account recovery.

Decentralized content, forecasting market-like mechanisms, decentralized sibyl Resistance and community-focused forums are “one direction to explore,” according to Buterin.

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Another set of ideas that Buterin is excited about is retroactive public goods financing, in which the idea is to establish a decentralized autonomous organization (DAO) that judges which projects have been valuable to a community’s goals. after the event.

” Ethereum ecosystem must expand beyond the mere creation of tokens that help exchange other tokens,” said Buterin. “se things are precious down to layer one and layer two, […] but once you get to level six, you are actually increasing financial instability and the risk that all of this collapses and could anger a couple of regulators.” .

He urged the community to “not just do DeFi.” Going further does not mean being against it. Rather, according to Buterin, “the best applications will combine financial and non-financial unsurts.”

At 11:29 UTC, ETH is trading at $ 1,981. It is up 4% in one day and down almost 1% in one week. Overall, it appreciated 708% in one year.

___ To find out more: – Vitalik Buterin makes a curious cameo in Kutcher and Kunis’s “Krypto” video – After hitting farm production, Buterin offers a “billion dollar” DeFi idea

– Ethereum will go to London in August, but some changes will have to wait – DeFi had a strong 2021, driven by new trends and paradigms

– Why Ethereum is far from “ultrasonic money” – Ethereum’s economy is a house of cards

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