Ethereum co-founder Vitalik Buterin shared his insights on the fundamental principles that shape the daily lives of cryptocurrency users.
His remarks came in response to an X thread by crypto project designer OxDesigner, who questioned the long-term value of meme coins within the crypto ecosystem.
OxDesigner expressed concern over the persistent popularity of meme coins. He argued that previous market cycles have significantly expanded the functionality and reach of cryptocurrencies.
These cycles have brought decentralized currency, programmable money, peer-to-peer (P2P) international payments, and unrestricted financial services. However, he questioned how meme coins contribute to improving daily life and felt their impact was more entertainment-focused than enduring.
Buterin outlines crypto’s areas of impact
In response, Buterin highlighted several key areas where crypto is making a difference in daily life. He emphasized the potential of zero-knowledge (zk) reputation systems, identity verification, and credential management. These projects can improve privacy and security with the management of personal information.
* zk reputation/identity/credentials
— vitalik.eth (@VitalikButerin) June 12, 2024
* p2p cross-border payments (much lower fees and quickly improving UX this cycle)
* decentralized social
* prediction markets (actually usable this cycle)
* privacy
* enterprise apps via zk validiums
* zk + censorship resistant voting
He also noted improvements in P2P cross-border payments. Lower fees and better user experiences are making these transactions more accessible and practical for everyday use. In May, MasterCard debuted a product in this area.
Buterin further pointed to the growing relevance of decentralized social platforms, which offer new ways for communities to interact and share information without relying on centralized authorities. One entity in this niche is Farcaster, which Buterin has previously praised.
Prediction markets were another area of focus for the Ethereum founder. He highlighted their increasing usability, as they facilitate more accurate forecasting. Moreover, privacy enhancements were also called to attention.
Buterin mentioned enterprise applications through the scaling protocol Validium. Finally, he discussed zk-based censorship-resistant voting systems, which can ensure the integrity and anonymity of votes.
Essentially, while meme coins might draw attention for their entertainment value, the core principles and applications of crypto are driving significant advancements in how people interact, transact, and secure their information. Buterin had also previously advocated for meme coins to have higher quality.