How Can Programmable Money Revolutionise Finance and Overcome Existing Challenges?
In this episode, Samantha Yap and Christine Kim continue their discussion from S3E11 on Ethereum’s transformative potential in revolutionising finance through programmable money and tokenomics.
They discuss how mainstream adoption can be achieved by addressing usability and scalability issues. Despite challenges like maximal extractable value, Christine says that ongoing research and upgrades are poised to maintain Ethereum’s position as a versatile blockchain over the next five years.
Ethereum’s Potential: Revolutionising Accessible Finance
Christine Kim emphasises Ethereum’s power to increase accessibility, transcending barriers like wealth and ethnicity. This decentralised approach, while challenging, holds the key to a future where financial services are globally inclusive and censorship-resistant. Ethereum emerges as a beacon of hope for a more equitable financial landscape.
Navigating Ethereum’s Challenges for Financial Transformation
Key obstacles to Ethereum’s potential role as a financial system cornerstone:
Usability Concerns: Complex crypto processes can deter non-technical users from engaging with decentralised finance applications, increasing the risk of falling for scams.
Enhancing User-Friendly Interfaces: Improving interfaces and educating users about decentralised apps can make Ethereum more approachable and secure.
Adoption Hurdles: Mainstream adoption may be delayed due to users’ unfamiliarity with storing wealth in crypto wallets.
Despite these challenges, ongoing efforts are being made to develop solutions, paving the way for Ethereum’s potential to reshape finance on a global scale.
Why Proof of Stake?
Proof of Work (PoW) PoW uses energy-intensive mining, while Proof of Stake (PoS) PoS employs validators staking cryptocurrency to enhance security. This change reflects Ethereum’s commitment to sustainability and trust. While PoS introduces challenges, ongoing research and innovation are key to overcoming them. The transition underscores Ethereum’s dynamic journey toward a more secure and efficient network model.
Ethereum’s Future Challenges
The platform is committed to constant upgrades and research, reflecting its dedication to growth and enhancement. The intricacies of Ethereum’s decentralised finance sector, including the complex issue of maximal extractable value (MEV), are being addressed with innovative solutions.
As Ethereum’s popularity drives high transaction volumes, efforts to bolster scalability by adjusting block size and network capacity are in progress. Despite the multifaceted challenges that come with its diverse functionality, Ethereum remains resilient, driven by the dedication of expert minds and a vision for a stronger future.
What’s Next?
Envisioning a blend of ongoing innovation and stability, Christine hopes certain parts of Ethereum’s code become untouchable to ensure reliability and censorship resistance. Balancing ambition with usability is crucial for Ethereum’s transformative potential in reshaping financial services globally. While Ethereum’s audacious goals drive its community, Christine emphasises the need for applications to be both adaptable and trustworthy. This balance, she believes, will define Ethereum’s narrative and adoption success.
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