Vitalik Buterin, co-founder of Ethereum, recently shared his thoughts on what he believes are the ideal types of applications in the crypto space. On X (previously Twitter), he noted that from his perspective, he finds value in applications that are useful sustainably and share other principles like permissive access and decentralization.
Praise for Decentralized Solutions
Buterin specifically endorsed decentralized exchanges (DEXes), stating that he personally uses them frequently. He considers such websites good examples of how decentralization would function in practice. Additionally, he highlighted the significant role of stablecoins like RAI and platforms like Polymarket, which embody the values of utility and decentralization.
Practical Benefits of USDC
Buterin also recognized the advantages of more centralized stablecoins, such as USDC. He noted that although USDC is comparatively more centralized than RAI, it is invaluable for seamless cross-border payments and charitable contributions.
Warning on Yield-Farming Projects
Buterin observed that USDC is a convenient tool for many users since it is widely adopted and can be used in everyday economic transactions, especially in developing countries. However, he warned against projects initiated with the intent of profiting from trends like liquidity farming seen in 2021. He expressed concern about the sources of yield and sustainability of these projects. According to Buterin, only long-term sustainability and commitment to decentralized values can generate genuine enthusiasm and investment.
Buterin's views reflect his belief in the importance of applications aimed at long-term sustainability and decentralization, while also acknowledging the practicality of centralized solutions.
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