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), Buterin noted that from his perspective, he finds value in applications that are useful sustainably and share other principles like permissive access and decentralization.
Buterin Praises Decentralized Solutions, Acknowledges USDC’s Practical Benefits
Buterin specifically endorsed decentralized exchanges (DEXes), as he claimed he personally uses them frequently. He considers such websites good examples that reflect how decentralization would in reality function. However, he didn’t mention any specific decentralized exchange. Buterin did not only discuss DEXes but he also underlined that stablecoins like RAI are playing a big role while platforms like Polymarket are great contributions to the ecosystem. He said that these applications represent the values that he would like to see, that have functional utility and decentralization.
Buterin, who sings the praises of decentralized solutions, did not deny the advantages of more centralized stablecoins such as USDC. He noted that although USDC is comparatively more centralized than RAI. However, its usefulness in making seamless cross-border payments and charitable contributions cannot be overstated.
Vitalik Buterin Supports USDC’s Role, Warns of Risks with Yield-Farming Projects
Vitalik Buterin observed that USDC is a convenient tool for many users since it is heavily adopted and can be used in everyday economic transactions in areas like the developing world. He expressed that USDC has a purpose in functioning in the global economy and is useful as a stepping stone toward more decentralized solutions.
However, Buterin opposed projects initiated with the intent of profiting from certain trends like liquidity farming witnessed in 2021. He was worried about what he referred to as the yield-earning apps where he wondered where the yields come from, and who is funding them? Buterin also pointed out that only the long-term sustainability of the project and staying true to decentralized values can create real enthusiasm and investment.
Lastly, Buterin’s view reflects his belief in advocating for applications of enduring and practical applications that aim for decentralization not dismissing the practicality of centralized solutions.
