Vitalik Buterin – Ethereum is the Future of Finance (Will Crush Bitcoin) #Finance

so bitcoin is a blockchain that’s designed for one application right which is like maintaining and letting people use bitcoin the currency ethereum is a general purpose blockchain so instead of being a blockchain that’s designed for one application ethereum is a blockchain that

supports a built-in programming language and it whatever blockchain application you want to build you can just write the logic of that application in the programming language um upload that program to the chain and this set becomes what we call a smart contract and anyone can then interact with

your application and the blockchain interprets the rules of your application for you russian canadian programmer violet buterin known widely in the Crypto community as one of the co-founders

of ethereum recently granted an interview to talk about the ethereum network he also talked broadly about the differences between bitcoin and ethereum buterin explained that ethereum does not have many of the lapses of bitcoin making it a more superior platform with many use cases according to the

programmer the ethereum protocol has been designed to take care of widespread problems in many traditional sectors for instance the protocol has enabled the growth of decentralized none;">Finance which has proven to be more efficient than the traditional Finance sector welcome to savvy

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance in this CashNews.co we examine vitalik buterin’s thoughts about ethereum being the currency of the future why he believes ethereum is better than bitcoin and the next big thing that could come out of the

protocol please stick around and watch the CashNews.co to the end also remember to drop a thumbs up subscribe to the channel and turn on post notifications violet buterin begins his interview by talking about the differences between ethereum and bitcoin while bitcoin has been designed with one sole

application in mind ethereum’s programming language allows for the creation of multiple applications though many bitcoin maximalists believe that the numerous use cases of ethereum and ethereum style platforms make them weak buterin believes this attribute is a strength that distinguishes

ethereum from bitcoin as a result of this factor the programmer believes that ethereum will be a crucial part of the future of social media platforms in the simplest terms what is ethereum and how is it different from bitcoin so bitcoin is a blockchain that’s designed for one application

right which is like maintaining and letting people use bitcoin the currency ethereum is a general purpose blockchain so instead of being a blockchain that’s designed for one application ethereum is a blockchain that supports a built-in programming language and it whatever blockchain

application you want to build you can just write the logic of that application in the programming language upload that program to the chain and this set becomes what we call a smart contract and anyone can then interact with your application and the blockchain interprets the rules of your

application for you um so instead of being something that’s designed to do one thing it’s designed to open up space for creativity to like basically let people do whatever um thing that they want to do on top of it so is the idea then that the next facebook or twitter would not be owned

by jack dorsey or mark zuckerberg but be built on the blockchain and owned by everyone there are multiple projects already trying to do that and lots of them are based on ethereum so yes buterin also addresses some of the issues that have played the platform since its creation he explains that the

network has had its share of issues which all great platforms face at one point or the other ethereum is working on these issues and several upgrades to make the protocol more secure and safe for users one of these upgrades is the launch of f 2.0 the launch will be marked by two important phases

buterin explains the first is the switch to proof of stake followed by the merging phase when all proof-of-work protocols move to proof-of-stake according to buterin proof-of-stake is a cheaper and more secure alternative ethereum has had some growing pains whether it is high transaction costs

traffic jams front running why do these problems exist this is uh the scalability problem everyone’s been talking about the scalability problem for at least five years now and and in uh basically it’s like a simple supply and demand problem right like if the number of people who want to

send transactions goes up but the amount of space for transactions on chain doesn’t go up then all of these people who want to send transactions are bidding against each other and only the ones that are willing to pay a really high amount can actually get in the only way to solve this is to

just improve the technology to increase the number of transactions that the system can process and it’s why we’re doing we’ve been doing just all kinds of incremental improvements to the blockchain clients and the protocol and the code over the last five years ethereum scalability

has increased by about a factor of five um since the project started and then there are some problems that are not like just just scaling problems per se but there’s still technology problems right like there are problems that have to do with the facts that like this entire ecosystem has

blown up and gotten big fairly quickly there’s a lot of aspects of it where people are still trying to understand like what is the correct way and what is the safest way to do these things right like for example the state of uh just security auditing for blockchain protocols like it has

gotten much better since uh the dow hack back in 2016 right but you know at the same time challenges continue to exist and that’s normal in any space when uh you know you have i guess that usage growing faster and then the technology catches up can you contrast proof-of-stake with

proof-of-work why do you think that’s so much better the reason why blockchains need to have proof of something right is because like these are decentralized systems so for example in proof-of-work like the the system actually measures how much computing power is being put into each block and

so in order for an attacker to take over the network they actually have to have more computing power than the rest of the network combined right like so you can’t just spin up a billion virtual machines on one computer but the problem is that it requires a huge number of computers to be

constantly running 24 7. so it works but it’s very expensive proof-of-stake it works differently right so proof-of-stake works by instead using coins as the economic resource so if you have coins inside of the system then you just sign messages with those coins and for an attacker to take

over they have to basically have like more coins than the rest of the network put together so it does the same thing but it avoids the need to have these computers running 24 7 and that’s where the efficiency comes from you’re planning major upgrades meantime and ease 2.0 is well

underway what will that accomplish what problems will it solve so i think what people call east 2.0 as uh has two big parts right one big part is the switch the proof of stake so after a full transition to proof of stake um there will not be more any more mining um ethereum’s energy

consumption will go down from by like a factor of more than one thousand so it’ll go from being a big problem to basically not a problem at all um and the chain will become more secure more secure it’ll become more efficient um so after that the next major milestone is what’s

called the merge which is when basically the proof of work chain just stops running and all of the applications on the proof of work chain get moved over to the proof station and continue running inside of the proof state chain from there it is no news that many of the applications on the ethereum

network are increasing in popularity by the minute button believes many of these applications will continue their reign in the future but he has two personal favorites when asked what the next big thing will be for ethereum buterin mentions defy and decentralized social media applications he

explains that the traditional Finance sector is largely inefficient so many people will jump at the opportunity of a fast secure and decentralized

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance sector a similar thing also applies to traditional social media platforms many of which have been accused of privacy invasion and unnecessary to platforming and censorship

people need great alternatives and buterin explains that this is exactly why the ethereum network has been built mostly Finance apps that are built on ethereum aside from

nfts and i’m wondering what is the killer app for ethereum that could lead to widespread adoption much like email was for the internet i think there’s a few candidates um so d5 is obviously one of them um i think the like blockchain-based financial things have always been attractive

because like the traditional financial system just sucks more than traditional centralized tech right like if i send an email to um you know someone in guatemala then they’re going to receive it in one second with #1a73e8; text-decoration: none;">Finance you can’t even say that a lot of people in companies even today just to use Cryptocurrency to send money internationally outside of

Finance uh yeah i think one interesting area that i where i think blockchains might go if you notice some that in order to access your Assets in ethereum you

need to have an account we’re getting to the point where there’s a lot of work that’s been done on making these accounts very secure and so instead of just being accounts that hold money like these these turn into like full fully blown profiles right and and once you have profiles

then you can start doing decentralized social media on top of that the social and financial things that you that you can do with that even working together is something that i think could be really big but also addresses the issue of people who are trying to build decentralized

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance applications and similar projects on the bitcoin network he explains that these ventures cannot be compared to what is available on the ethereum network while ethereum was built

to accommodate other applications and protocols bitcoin was built to do the opposite jack dorsey recently announced square is creating a new business focused on decentralized financial services based on bitcoin using bitcoin what have you learned about jack dorsey’s plans does it seem like

he’s building something that sounds a lot like ethereum i’m skeptical about these decentralized Finance on top of a bitcoin type of project so basically because

like the difference between bitcoin and ethereum right this is uh is um that on ethereum there’s like native functionality that allows you to essentially directly put either eth or ethereum based Assets into these smart contracts into these lock boxes when where there’s

then like arbitrary conditions of any kind that can then govern how those Assets get released bitcoin does not have that functionality to the same extent like jack is basically going to have to essentially create his own system that enforces those rules and then on the bitcoin

lawyer the bitcoins will just have to be owned by probably a multi-sig wallet controlled by like either jack or just or the participants in the system it looks similar but it’ll end up being something with a much weaker trust model right like i i really think that like this is the whole

reason why ethereum started as an independent system in the first place right like there’s there’s technical limits to your ability to kind of graft new functionality onto a system that’s not powerful enough to support that new functionality the russian canadian also believes

bitcoin cannot replace the dollar as many leading analysts predict uterine explains that the coin does not possess qualities that make it a worthy replacement instead uterine believes that if the dollar falls we would have to rely on a stable coin and not the flagship

href="https://cashnews.co/crypto" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Crypto listen to his prediction for the two leading Cryptocurrencies so ethereum in five

years and 10 years where is it uh i mean hopefully running the metaverse uh but i i guess we’ll see how it goes you’ve got a lot of people out there a lot of people who are trying to understand text-decoration: none;">Cryptocurrency who are placing their bets what’s your prediction for bitcoin does it replace the dollar does it exist in 50 years or is it something else and then similarly what’s your prediction for ethereum because a lot of investors are choosing to hold

both or one or the other yeah i think uh replacing the dollar completely is unlikely um just uh because like there’s things that the dollar provides like price stability for example that bitcoin is i’m not going to provide like i think even in a theoretical world where um the us dollar

collapses like even then i think bitcoin is not going to be able to provide the level of like stability that users and businesses expects to be able to set prices in um and in that kind of world we would need something else like like it could be decentralized stable coins it could be something else

but we’ll see um so but at the same time i think Cryptocurrency can still have a very powerful and important role alongside uh existing currencies do you think ethereum will surpass

bitcoin as the largest Cryptocurrency as a result of many of its uses cases please share your thoughts in the comments section below have you liked the CashNews.co and subscribe to the channel

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