Ethereum co-founder, Vitalik Buterin, has recently shared his reflections on the state of the Ethereum network as the year comes to a close, emphasizing the need to return to its original cypherpunk ethos.
In a blog post on December 28, Buterin highlighted the foundational principles of Ethereum, reminiscent of its early days when it was deeply rooted in the cypherpunk movement. The initial vision of both Bitcoin and Ethereum was driven by idealism, aiming to create a more open, decentralized, and censorship-resistant internet and economy.
However, Buterin expressed regret that this vision gradually faded over time, especially as transaction fees increased, leading to the dominance of applications focused on payments and speculation. He noted a cultural shift towards what he termed “degen gamblers.”
The cypherpunk movement advocates for leveraging technology to advance privacy and social change while safeguarding against state or corporate oppression. In his tweet, Buterin called for a return to Ethereum’s cypherpunk roots.
Despite these challenges, Buterin pointed out positive signs of a cultural revival in 2023, attributed to advancements such as rollups reducing fees and the development of privacy technologies like zk-proofs. There is also a growing desire to move beyond over-financialization.
Buterin envisioned Ethereum as a testbed for pioneering open and decentralized security innovations, including social recovery wallets, prediction markets, and quadratic voting, which could potentially influence the broader internet.
He outlined the ideal future Web3 tech stack, which involves decentralized equivalents to DNS, email, payments, identities, publishing, and governance. These components would interoperate while avoiding central points of control.
Buterin concluded by noting that many individuals initially enter the crypto space with the goal of financial gain but become advocates for decentralization when they grasp the broader capabilities of the technology.
In recent blog posts, Buterin has actively engaged with proposals to enhance Ethereum’s efficiency, advocating measures to reduce the load on the blockchain. Despite Ethereum’s price doubling in 2023, reaching $2,430 on December 28, it faces competition from other blockchain tokens. However, Ethereum remains a significant player as the world’s second-largest crypto asset and the industry standard for smart contracts. Analysts have even projected a potential surge in ETH prices to $15,000 in the next bull market based on historical cycles.
