Ethereum Co-Founder Emphasizes the Evolving Utility of Cryptocurrencies

In a series of thought-provoking tweets, Ethereum (ETH) co-founder Vitalik Buterin outlined various potential everyday uses for cryptocurrencies beyond financial transactions. Addressing skepticism about the real-world application of cryptocurrency technology, Buterin listed advancements such as zero-knowledge (zk) proofs for reputation, identity, and credential management, significantly reduced costs for peer-to-peer cross-border payments, decentralized social networks, and more. These developments indicate that user experience is rapidly improving within the current technological cycle.

• zk reputation/identity/credentials

• p2p cross-border payments (significantly reduced costs this cycle, rapid user experience improvement)

• Decentralized social networking

• Prediction markets (actually usable this cycle)

• Privacy

• Enterprise applications via zk validiums

• zk + anti-censorship voting

— vitalik.eth (@VitalikButerin) June 12, 2024

Buterin highlighted the emerging field of prediction markets becoming truly usable in this cycle, with enhanced privacy and integration of enterprise applications through zk validiums. Additionally, he pointed out the potential of zero-knowledge proofs to strengthen anti-censorship voting systems, demonstrating the depth of blockchain technology’s integration into the societal framework.

Addressing the Meme Coin Phenomenon

In the narrative of progress, blockchain developer OxDesigner (known on Twitter as “Blovkvhain Dev”) expressed concern over the continued focus on meme coins within the cryptocurrency narrative. OxDesigner questioned the sustainability and practicality of meme coins, suggesting that their prominence might overshadow more substantive advancements in the world of cryptocurrencies, such as decentralization, tamper-proof currencies, peer-to-peer payments, programmable money, permissionless financial services, and digital asset ownership. These factors are seen as net positive developments for the industry.

OxDesigner candidly expressed dissatisfaction, lamenting that meme coins lack a convincing vision for improving daily life, primarily branding them as entertainment products and attention-grabbing mechanisms. Despite being open to changing his view, the developer expressed discontent with the current design philosophy of meme coins, indicating a general dissatisfaction among cryptocurrency enthusiasts with the direction of industry development.

In response, Buterin reiterated the important functions of encryption he outlined, emphasizing the importance of focusing on innovations that provide tangible, real-world benefits and pushing the industry beyond the mere monetary value.

Sentiment: Positive