Ethereum co-founder Vitalik Buterin tweeted earlier today about the cryptocurrency and ETF rejections. The name follows the crypto community as one of the youngest fortunes in the industry. So what did Buterin say? What do you think about Bitcoin and Ethereum ETF applications?
Description of the founder of Ethereum
Buterin made a statement on his Twitter account earlier today against regulations affecting the inner workings of the cryptocurrency ecosystem. The co-founder of Ethereum believes that the cryptocurrency ecosystem should mature and abide by regulatory policies that allow cryptocurrency projects to operate freely internally.
Given the current situation, Buterin believes it would be best to create regulations to give cryptocurrency projects internal independence, even if it hinders mainstream adoption, saying:
“Actually, I’m glad that many exchange-traded funds (ETFs, such as spot bitcoin ETFs) have been delayed. The ecosystem needs to mature before more attention can be shifted to this space. It will also take time.”
Vitalik Buterin Notes
Front-end KYC verification in decentralized finance (DeFi) is also on Buterin’s agenda. However, he emphasized the need for KYC on cryptocurrency exchanges for large-scale application scenarios.
“This (front-end KYC requirement) will annoy users, but is useless for hackers. Hackers are already writing custom code to interact with the contracts.”
Now what would you say is the difference? The so-called front-end is the interface that the website is designed to interact with the user. It includes buttons, text boxes, etc. Many users use these interfaces to trade on DeFi platforms. Attackers, however, are more technically equipped people who don’t need to use a front end, they write other smart contracts that allow them to communicate directly with DeFi protocols. DeFi users with software knowledge will do the same.
Finally, Buterin suggested using zero-knowledge proofs to satisfy regulatory requirements while protecting the privacy of users, adding: “I would like to see rules written in such a way that the requirements can satisfy zero-knowledge proofs as much as possible.”
Zero-knowledge proofs are a different model that allow verification without revealing users’ private information and identities.
Source of information: Compiled from COIN-TURK by 0x information.The copyright belongs to the author Fatih Uçar and may not be reproduced without permission