At the Ethereum Community Conference in Cannes, Vitalik Buterin raised concerns about the future of Ethereum and decentralization. He proposed three criteria for assessing cryptocurrency projects and unveiled fears about the potential erosion of Ethereum's fundamental principles.
Tests for Evaluating Decentralized Projects
Vitalik Buterin introduced three tests that every cryptocurrency project should pass:
* The withdrawal test: if the team disappears, does the application still work? * The insider attack test: what can a malicious collaborator do? * The trust base: how many lines of code can we really take at face value?
These criteria aim to uncover flaws in layer 2 (L2) projects that can be updated with a click or in app interfaces that create an illusion of control over users.
Cryptocurrency Goes Mainstream: Losing Identity
Buterin did not stop at a technical audit; he also provided a historical interpretation of the current moment. He noted that the crypto world has left the artisanal era, with giants and state leaders now taking the stage. He cited Donald Trump, who has recently supported cryptocurrency, as a sign that the ‘underground’ is dead. If the crypto space becomes driven by the same logic as traditional finance, what remains of the original dream of decentralization?
Quote: 'If we lose this, Ethereum will just become a generational phenomenon, disappearing like many others.' — Vitalik Buterin.
Privacy, Governance, and the Future of Ethereum
Despite the bleak outlook, Buterin believes solutions exist. He advocates for native privacy: no more treating privacy as an option; every leak should be considered a bug. He also criticizes DAOs with purchasable votes, describing them as ‘false democracies.’ A simple question he poses is: 'Does what you build make your users freer?'
Some facts about the current state:
* 60% of L2s use upgrade keys that can be activated without the user; * Over 70% of dApp interfaces are vulnerable to front-end attacks; * RPCs often leak data to centralized servers; * In 1 out of 3 DAOs, a few addresses control more than 80% of voting rights; * 9 out of 10 projects implementing ZK Proof fail to fully mask transaction histories.
Buterin advocates for a shift in both technical and ethical directions to ensure Ethereum moves forward to address challenges around privacy, reducing gas fees, and improving governance.
Vitalik Buterin expressed serious concerns about Ethereum's future, emphasizing the need to adhere to its fundamental principles and calling for actions to enhance decentralization and privacy in the crypto world.
