- Ethereum continues to dominant the DeFi space
- Will Decentralized Finance Be the Last Wave of Ethereum Applications?
- Vitalik Buterin hopes Ethereum would achieve more beyond DeFi
Ethereum News Today – Recently, Ethereum has been making headway in decentralized open finance. For over a year now, the catchword that has grabbed the attention of the Ethereum ecosystem has been DeFi, short for Decentralized Finance. From infrastructure to payments to stablecoins, the ecosystem of Ethereum gained so much prominence with projects such as DAI, Ox, and OmiseGo.
The enormous growth of this particular area was one of the major points of discussion at the ETH Waterloo 2 event. The co-founder of the crypto project – Vitalik Buterin – also gave his opinion on the ecosystem of DeFi and if it would be the last wave of Ethereum applications.
Ethereum (ETH) Price Today – ETH / USD
Will Decentralized Finance Be the Last Wave of Ethereum Applications?
On DeFi being the last wave of Ethereum applications, Buterin said that, in his personal view, it “hopefully” does not end there. In a statement, he said:
“In terms of, what I as a person care about, I would definitely be sad if finance was the end of it. At the same time, Ethereum is an ecosystem, and I am, like, supposed to be not the dictator. So, if it does not perfectly reflect my values, I am not supposed to complain.”
About decentralized finance, he said, “there is definitely a lot of value that comes out of creating decentralized open financial systems.” He added that the sector is doing a great job, not only in payments but also developing new financial tools, such as insurance smart contracts, which was made available to everyone across the globe. The Ethereum co-founder said:
“It definitely seems like Ethereum’s making a lot of headway there […] I see the value behind the DeFi wave and I’m happy to see a lot of people building these things. Going beyond finance, I definitely think there are a lot of other things a blockchain can do. I view blockchains more generally as being this kind of economic substrate for mechanism design.”
Buterin Explains Why People Focus More on Finance Application
Buterin said that there are two reasons why finance has been the initial application that people focus on. First, it brings money in the near term. Secondly, it was one of the industries where existing centralized solutions are most terrible. Buterin further added:
“Like sending email from country to country is trivial, but sending money from country to country is still something that takes a significant effort. Whereas if you just do it over a cryptocurrency, I give you an address over any of these messengers, you send money and it’s done and it’s much simpler.”