Vitalik Buterin (one of the founders of Ethereum) has suggested solutions he feels will scale the crypto ecosystem. Particularly, the Ethereum Network. He says the Ethereum network needs to expand beyond just making tokens that help with trading other tokens.
- Vitalik Buterin wants General purpose Blockchains to be encompassing and utility driven.
- Blockchain is the framework for a decentralized internet.
- NFTs are valuable because they touch on the art side of decentralization other than finance.
Blockchain and the Imminent Rise of Web 3.0
Blockchain technology will usher in the framework for the development of Web 3.0. This is because it is decentralized. It is also fully functional to accommodate smart contracts. But NFTs are an unprecedented euphoria in the development plan of the Blockchain ecosystem. It is not a coincidence because NFTs are proof that anything can be exchanged using this new model.
This new mechanism will be an upgrade to the old 2.0 design. Especially in scale, privacy, speed, and transaction thoroughfare. This new internet will use the ideas of decentralization as a major factor in the running of the network. Web 3.0 will integrate new technologies like AI, AR, VR, Blockchain, and other gaming protocols. At least, these are the expectations.
DeFi and NFTs are creating a surge in the use cases of decentralized networks. This rush has looped in a vacuum of purpose and a bubble no one knows when it will burst. And if it is not curtailed may defeat the long-term goals of a decentralized ecosystem. This is because the attention given to the development of web 3.0 has become saturated by the craze to own or create an NFT.
Why it’s Not Just About Defi and NFTs
Vitalik Buterin thinks the Ethereum network should move beyond these lines. Since it does not align with the initial vision of Ethereum and cryptocurrencies. He believes General purpose Blockchains should be encompassed to meet real value in different areas. Vitalik has always been strategic in his principles about the governance of Ethereum. He reiterated this point in July during the Ethereum Community Conference (4).
“The vision of Ethereum, and much of crypto beyond Ethereum, has always been to make decentralization, trust minimization and mechanism design experimentation far beyond finance”
Although he is particular about NFTs in his talk, he does not, as a matter of fact, disapprove of them. Vitalik acknowledged that NFTs are in line with the ideas of design experimentation far beyond finance because of the value it created in art. Thus, diversifying the use case of the Blockchain.
“But still NFTs are interesting,” he said. “They are this interesting cultural phenomenon, and they really have attracted the different kinds of people to the Ethereum space that are interested more in the art side than in the finance side”
He also acknowledged that “moving beyond DeFi is not about being against defi. I actually think the best applications will combine elements of finance and non-finance!”
The Lingering Question of Utility?
In the coming months, it is expected that Ethereum community developers will create diversifying dApps. dApps that will be on the Blockchain that is beyond finance. Safe login apps that can integrate with other networks. Decentralized social media, decentralized emails, DeGov, Retroactive public goods funding. etc. Vitalik listed some directions to explore as:
- Decentralized Content.
- Prediction–market-like Mechanisms.
- Decentralized Sybil Resistance.
- Community Focused.
What Next? The Race for Blockchain Social Media.
In all the talks about utility, one important area stood out. That is blockchain-based social media. There is a lot of work going on and the race is on to find the face of social media for web 3.0. This stems from the reality that there is a lot of censorship in what we have today.
A decentralized social network will change the face of how we interact in the future to correct these ills. Vitalik ideas and suggestions are expansive, but Ethereum may not be the only network in this race. The thrill about NFTs is witnessing a shift and soon will make way for newer innovations.
And Vitalik was right, the race will have to be about creating utility, or these blocks will one day collapse.