My summary on Vitalik's ETH application ecosystem outlook. 5 key application categories:
1. Money. Post-merge transactions are now faster. bigger push towards on-chain transactions thanks to FTX. 3 types of stablecoins: centralized, DAO-governed, and governance-minimized.
2. DEFI: success today in prediction markets like Augur, Metaculus, Polymarket. Synthetic assets like replicating stocks. Glue layer to trade between assets.
3. The identity ecosystem: ENS, SIWE (Sign in With Ethereum), PoH (Proof of Humanity), POAPs (Proof of Attendance Protocol), SBTs. 3 main uses: Basic Auth, Attestations, Proof of personhood. Privacy is the biggest challenge.
4. DAOs. Broad term today referring to both governance structure (protecting against inside attacks) and implementation (protecting against outside attacks). Decentralization is for robustness, efficiency, interoperability. New governance mechanisms like quadratic voting, futarchy, liquid democracy can be valuable for both robustness and efficiency.
In conclusion: many new applications have limited use today due to limitations in tech. Blockchains don't scale and transactions are slow. Privacy issues will remain a hurdle. All solvable problems. Most important apps will be non-financial and not have a token which will make them slow to grow - but will bring lasting value to users.
1. Money. Post-merge transactions are now faster. bigger push towards on-chain transactions thanks to FTX. 3 types of stablecoins: centralized, DAO-governed, and governance-minimized.
2. DEFI: success today in prediction markets like Augur, Metaculus, Polymarket. Synthetic assets like replicating stocks. Glue layer to trade between assets.
3. The identity ecosystem: ENS, SIWE (Sign in With Ethereum), PoH (Proof of Humanity), POAPs (Proof of Attendance Protocol), SBTs. 3 main uses: Basic Auth, Attestations, Proof of personhood. Privacy is the biggest challenge.
4. DAOs. Broad term today referring to both governance structure (protecting against inside attacks) and implementation (protecting against outside attacks). Decentralization is for robustness, efficiency, interoperability. New governance mechanisms like quadratic voting, futarchy, liquid democracy can be valuable for both robustness and efficiency.
5. Hybrid apps: voting, govt registries, corporate accounting, supply chain apps, tracking access auth.
In conclusion: many new applications have limited use today due to limitations in tech. Blockchains don't scale and transactions are slow. Privacy issues will remain a hurdle. All solvable problems. Most important apps will be non-financial and not have a token which will make them slow to grow - but will bring lasting value to users.