At the Global On-chain Asset Conference in Singapore, Ethereum’s co-founder Vitalik Buterin shared his vision for the future of applications on Ethereum. According to Vitalik, the ecosystem will evolve along two main directions: low-risk, safer DeFi and more innovative non-financial applications.
1. Low-Risk DeFi – Becoming Safer and More Reliable
Vitalik highlighted that decentralized finance (DeFi) has made significant progress in terms of security and stability:
In 2019, the total hacked funds accounted for about 5% of DeFi TVL (Total Value Locked).
Today, that figure has dropped to just 0.02% of TVL, proving that DeFi protocols are becoming safer and more reliable.
Example: Morpho Protocol
Vitalik pointed out Morpho — a DeFi protocol that allows anyone to deposit stablecoins (USD/EUR) and earn 3–4% interest. This is especially valuable for people who don’t have access to traditional banking, enabling broader financial inclusion worldwide.
2. Innovative Non-Financial Applications
Beyond finance, Vitalik believes Ethereum will foster a new wave of creative applications, such as:
Prediction markets: For example, Polymarket, where users can bet on real-world events.
Decentralized identity solutions: Like Ethereum Name Service (ENS) or ZKID, which leverage zero-knowledge proofs.
Decentralized social networks: Platforms that may one day rival traditional social media. Although he expects that 90% of such projects may fail within five years, the 10% that succeed could create massive value.
Which Applications Stand Out to Vitalik?
Among these emerging directions, Vitalik gave special attention to:
ZKID – Zero-Knowledge Identity: A solution that allows users to prove only the necessary information without revealing all personal data. Combined with AI, it could significantly expand access to global credit.
Polymarket Prediction Market: An innovative application that could unexpectedly explode in popularity.
Decentralized social networks: Despite the high risk of failure, these projects carry transformative potential if successful.
Conclusion
According to Vitalik Buterin, Ethereum is not just a decentralized bank — it’s a platform to nurture breakthrough applications across many fields. While DeFi has already proven safer and more reliable, innovative solutions like ZKID, Polymarket, ENS, and decentralized social networks could shape the next phase of blockchain adoption.
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