Vitalik Buterin is the co-founder of Ethereum and said that many big corporations are missing the point with blockchain. Some companies apply the blockchain in the wrong way and is a “waste of time.”, according to Buterin.
Where is blockchain not applicable?
Devcon is an annual Ethereum developers conference. Since the price of ethereum has tumbled from a high of $1,400 to a current value of a little over $100, the conversations were dominated by improvements of the current network this year.
During an interview with Quartz, Buterin argued that even though it is good that major companies are implementing blockchain, the new technology is not applicable in every industry.
''Sometimes it’s for marketing hype. Sometimes it’s just people who are genuinely excited about blockchains and want the thing they’re personally excited about and their job to align more with each other, which is a legitimate, human thing to want to do. In some cases, I think it leads to a lot of wasted time.”
Buterin argues that the most wasteful use case is the “big corporate blockchain stuff.” IBM is an example where they implement a blockchain to store all IP addresses. That is most definitely no the point.
Where is blockchain most viable?
According to Ethereum’s co-founder, one of the biggest use cases is as currencies and making international payments easier. Everything else, products to identify subjects, is something that needs more time before we can see if it makes sense. However, payments and many things related to it are exciting, he adds:
“Going beyond money, I think the value is that you create a token and you immediately have access to wallets, multi-signature wallets, decentralized exchanges, and just using it as collateral—all of this infrastructure that you wouldn’t have access to if you just created a currency and tried launching it off your server.”
Apart from cryptocurrencies, his favorite application is the idea of authentication of university degrees. Singapore is currently working on implementing that. The technology purportedly allows institutions to issue education certificates on a blockchain digitally.
Vitalik Buterin shared some other exciting news during the conference. He argues that Ethereum 2.0 might not be far away from launching, a story covered by Toshi Time.
Ethereum 2.0 is the umbrella term for the mass-upgrade package. It has been in the pipeline for some time and will see improvements implemented regarding scalability, virtual machine functioning, cross-contract logic, and protocol economics. Most significantly it will see the implementation of Casper, Casper is the project name for the new proof-of-stake model the network will be running on.