Buterin on Ethereum: Beyond Digital Silver

Software engineer Max Resnick sparked an intriguing conversation today on X with his bold take on Ethereum’s broader potential.

Resnick highlighted that while Ethereum is often viewed as a ledger of record for its native asset, ETH, its capabilities extend far beyond being a store of value or a form of digital money. He emphasized that Ethereum represents “the future of finance.”

His remarks resonated with the idea that Ethereum’s blockchain is not limited to being a digital silver or a decentralized version of Venmo. Instead, he emphasized Ethereum’s power to reimagine the global marketplace by improving market efficiency. The pro-Ethereum Software engineer stated:

“I would rather work on making global markets more efficient than digital silver or permissionless Venmo,”

Vitalik Buterin Probes Further

This bold vision prompted a direct reply from Ethereum’s co-founder, Vitalik Buterin, probing deeper into Resnick’s thoughts. “Which global market inefficiencies are you most excited about solving?” Buterin asked.

Which global market inefficiencies are you most excited about solving?

— vitalik.eth (@VitalikButerin) October 1, 2024

In response, Resnick outlined his focus on minimizing transaction costs by cutting out rent-extracting intermediaries, reducing spreads, and enhancing global market access. He aims to strengthen network effects by making markets more accessible and efficient, potentially unlocking Ethereum’s full potential as a transformative force in global finance.

Business developer Pablob joined the discussion, highlighting the issue of transaction costs in less liquid markets. “Most transaction costs outside of hyper-liquid markets come from a lack of trust between parties,” he said. He pointed out that auditors, risk assessments, and due diligence contribute significantly to these costs.

Another commenter mentioned the high fees charged by auction houses, asking for Resnick’s solution.

Ethereum “Not” Future of Finance

Meanwhile, X user Lazarillo criticized Resnick’s statement, calling it “absurd” to claim Ethereum is the future of finance. Lazarillo argued that Ethereum may not be the future of finance simply because the idea has been repeated over the years.

Resnick replied, agreeing that repetition does not make it true, but building it will. He added that Ethereum needs changes to fulfill its potential.

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