Vitalik Buterin Reflects on the Shift in Web3 Visions

Ethereum co-founder Vitalik Buterin expressed concerns in his latest blog post, titled “Make Ethereum Cypherpunk Again.” He noted a growing ideological divide between the blockchain and non-blockchain communities, with the latter viewing the crypto space as a distraction rather than an ally. Buterin lamented the fading original vision of Web3, which was initially conceptualized by Ethereum co-founder Gavin Wood as a broader technology base for a more open internet, beyond just smart contracts and Bitcoin.

Core Issues in the Crypto Space

Rising Transaction Fees

Buterin identified the significant increase in transaction fees as a primary factor altering the landscape of blockchain applications. He explained that low costs encourage diverse and non-financial blockchain applications. However, with fees soaring above $100, the platform becomes more appealing to high-risk traders or ‘degen gamblers,’ which affects public perception and internal culture within the crypto space.

Centralization in Cryptocurrency Usage

Despite the global use of cryptocurrencies, Buterin observed that many people rely on centralized methods, such as exchanges or trading platforms like USDT on Tron. This trend moves away from the decentralized ethos initially envisioned for the crypto world.

Positive Developments within Ethereum in 2023

Buterin highlighted several advancements within the Ethereum ecosystem, including:

• Scalability solutions like rollups.
• Second-generation privacy solutions.
• Emergence of account abstraction and light clients.

These technologies, he believes, could reignite the decentralized spirit of the crypto community.

The Future: Zero-Knowledge Proofs and Ethereum’s Potential

Buterin discussed the potential of zero-knowledge proofs, which are becoming more developer-friendly. These technologies could lead to a wide range of applications, from decentralized social media to anonymous voting systems, while maintaining privacy and security. He emphasized their role in moving beyond the dichotomy of anonymity versus regulated safety.

Reaffirming Ethereum’s Core Values

Buterin urged the Ethereum community to stay true to its core values, including open global participation, decentralization, censorship resistance, and credible neutrality. He warned against the creation of systems that claim to align with these values but are, in reality, centralized. Resisting these trends is crucial to maintaining the crypto ecosystem’s unique value and avoiding the replication of the existing web2 system with added inefficiencies.