Why Vitalik Buterin thinks Ethereum and DeFi will disrupt finance

Vitalik Buterin asserted that finance is likely the first sector that will be disrupted by blockchain.

The advent of decentralized finance-with projects such as MakerDAO, Augur, Uniswap, and Etherisc-has the potential to disrupt the "Insanely inefficient" sector.

Now, according to Vitalik Buterin, because blockchain technology is rapidly improving decentralized finance applications can "Really start taking off."

Some of the applications Buterin mentioned include MakerDAO, a platform for getting ETH collateralized loans in exchange for Dai stablecoins; Augur, a decentralized prediction market using Reputation and group consensus; and Uniswap, a protocol for automated token exchanges for swapping ERC20s.

Vitalik Buterin did temper his statements with reservations that the above are "Pure applications" of stuff that only tends to happen in the crypto space.

That said, Buterin did mention there are some applications and projects that are beginning to bridge the worlds of DeFi and traditional finance.

Other ways Vitalik Buterin sees DeFi evolving is the need for collateral.

If such a system was incorporated into a blockchain scheme it might be possible to reduce the amount of collateral needed, Buterin suggests.

"Decentralized finance has grown into one of the most active sectors of blockchain in 2019, and Ethereum projects in particular have raced to the front in establishing an ecosystem with global network effects and interoperability."

Like the ICO craze of 2017 that Ethereum facilitated with its ERC20 token standard, perhaps decentralized finance is the next "Killer" application that will push ETH to the forefront.