Vitalik Buterin, the Co-Founder of Ethereum, while comparing Google’s search with low-risk decentralized finance (DeFi) for Ethereum, said that the latter can be beneficial for Ethereum in the same way as Google’s search.
In his latest blog post, Buterin highlighted the two long-term dissociations in the Ethereum ecosystem. One of the two tensions is between applications that generate sufficient revenue to economically sustain the ecosystem, either by maintaining the value of Ethereum (ETH) or supporting individual projects. The other ones are those applications that fulfill the fundamental goals that attracted people to Ethereum.
According to Buterin, these mismatches were disturbing the harmony in the Ethereum community, and many users in the blockchain space were hoping for a new player that would overcome these two shortcomings. He believes that Ethereum can now address these problems with low-risk DeFi practices, which aims to provide global, democratized, and affordable access to payments and savings in valuable asset categories.
Ethereum’s comparison with Google search
Vitalik Buterin also stated that the Google ecosystem contains many components. It has browsers, Pixel phones, AI models, and the Go language, among others. But the revenue generated through it is incomparable to that generated by the Search feature on its browser. Similarly, low-risk DeFi can play a notable role for Ethereum. Other applications are equally important for Ethereum, but they do not need to be looked at as revenue generators.
“In fact, I hope Ethereum can do much better than Google. Google is often criticized for losing its way and becoming like the antisocial profit-maximizing corporations that it sought to replace,” he wrote in the blog.
Why a shift towards low-risk DeFi?
Buterin explained that low-risk DeFi includes simple functions like payments and savings, familiar tools like synthetic assets and fully collateralized lending, and the ability to trade between these assets. He argued that focusing on these stable primitives could ensure sustainable fee revenue for Ethereum while aligning more closely with its ethical and community-driven values. Moreover, according to him, low-risk DeFi is already supporting the Ethereum economy, which is a thing to be proud of for the Ethereum community.
The statement comes when Ethereum reached a record high of 27 million transactions in a single day last week. This achievement surpasses major European payment systems and positions Ethereum closer to mainstream finance.
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