Home News Ethereum white paper predicted DeFi but missed NFTs

Ethereum white paper predicted DeFi but missed NFTs


In a retrospective of the last ten years, Ethereum co-founder Vitalik Buterin reviewed his forecasts, demonstrating a proclivity towards being correct about abstract notions rather than ongoing software development challenges.

Buterin started the Twitter debate by referring to a post he wrote on July 23, 2013, in which he emphasised Bitcoin’s (BTC) fundamental characteristics of internationality and resistance to censorship. Buterin sees Bitcoin’s promise in protecting citizens’ purchasing power in Iran, Argentina, China, and Africa.

When Buterin saw Argentinian enterprises utilising Tether, he noticed a spike in stablecoin usage (USDT). He backed up his ten-year-old claims regarding the negative consequences of Bitcoin regulation.

The entrepreneur continues to believe that “the internet of money should not cost more than 5 cents per transaction,” praising Ethereum’s ongoing efforts to improve the blockchain’s scalability.

Buterin preferred altcoins

“I liked altcoins before altcoins were cool,” Buterin continued, citing an article in which he supported his claim with three arguments: different chains optimise for different goals, the costs of having many chains are low, and the need for a backup in case the core development team makes a mistake.

Buterin, on the other hand, has withdrawn his support for Bitcoin Cash (BCH). Claiming that communities formed around a rebellion, even if they have a good cause, often struggle in the long run. And that “they value bravery over competence. And are united around resistance rather than a coherent way forward”, according to Buterin.

“While incentivized file storage + compute hasn’t taken off as much (yet? ), and of course, I completely missed NFTs, a lot of it was right (basically anticipated “DeFi”).

“On tech, I was more often right on abstract notions than on production software dev difficulties”, Buterin concluded. Confirming the intuition that helped him fix mistakes early in his career. It took a long time for me to figure out the latter”.

Plausible roadmap

In early December, Buterin offered a “plausible roadmap” for ETH 2.0, recommending “a second tier of staking, with moderate resource requirements” for distributed block validation.

He also advocated the adoption of fraud-proof or ZK-SNARKS as a cheaper solution for users. In order to confirm the legitimacy of blocks. Buterin claims:

“[With these modifications], we have a chain in which block production is still centralised, but block validation is trustless and highly decentralised, and block producers are prevented from filtering by specific anti-censorship magic.”

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