ETH Founder Says DeFi Is Ready for THE MASSES - Security FIXED - video Dailymotion

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Vitalik Buterin just made his boldest claim yet — “DeFi as a form of savings is finally viable.” And this changes everything. In this video, we break down Vitalik’s newest insights on Ethereum scaling, DeFi security, smart contract risk, and why he believes users worldwide may soon treat decentralized finance like their primary bank account. If you care about Ethereum, DeFi yields, and crypto adoption, this is a must-watch.  📧 Email: cryptorobothelp@gmail.com  💰 Affiliate Links  Sofi Checking & Savings – Get $25 free ➝ https://www.sofi.com/invite/money?gcp=16a53d0f-b4b2-441d-9100-cfb506305260&isAliasGcp=false  Sofi Investing – Free $25 in stock ➝ https://www.sofi.com/invite/invest?gcp=ab31edd8-701e-4109-9225-51b41e35d246&isAliasGcp=false  Coinbase Exchange – Earn up to $300 BTC ➝ https://coinbase.com/join/YPUQLCY?src=referral-link  Tracking Tools – CoinGecko | CoinMarketCap  Trading Tools – Get $15 off TradingView ➝ https://www.tradingview.com/pricing/?share_your_love=cryptonextsteps  #Ethereum #VitalikButerin #DeFi #CryptoNews #Blockchain #EthereumScaling #Layer2 #CryptoSecurity #DeFiSavings #FinancialFreedom #Crypto2025 #ETH #DeFiUpdates #SmartContracts #CryptoAdoption

Transcript

00:00Okay. Let's unpack this. We've just seen, well, probably Vitalik Buterin's most definitive

00:06statement yet about Ethereum, about DeFi. And honestly, it feels like it redraws the map a bit.

00:15It really does.

00:16The core message, it's not subtle at all. Vitalik's basically saying DeFi is, quote,

00:20finally viable and ready for people to stop thinking of it as some kind of wild experiment

00:26and actually start treating it as their primary bank account.

00:30That phrase, primary book account, that's a huge shift, a fundamental shift in declaration,

00:35really. For the founder of Ethereum to actually say that, it signals pretty clearly, I think,

00:40the end of that chaotic yield chasing phase, DeFi summer back in 2020, 2021.

00:46Right. The food coins and craziness.

00:48Exactly. We're stepping into something different. We have to start calling it maybe the DeFi savings

00:53era.

00:53The DeFi savings era. I like that. And the implications of that shift, they're massive,

00:57right? It's not just technical upgrades we're talking about.

00:59No, not at all.

01:00It's about like institutional comfort level, maybe.

01:03Yeah.

01:03And probably more importantly, giving people real lower risk financial tools, especially

01:09people, you know, trying to get away from unstable fiat currencies or really high inflation.

01:15Precisely. And look, if we're going to buy into this viability claim, we absolutely have

01:19to dig into the sources, understand the stability that Vitalik's actually seeing on the ground.

01:24So our mission for you today is to distill the, let's say, three big pillars holding up this

01:31confidence. Security, scaling, and that bigger picture, societal relevance, or maybe just

01:36financial freedom.

01:37Makes sense. And you have to start with security, right? I mean, it's a bank account analogy.

01:40Yeah, start there.

01:41And Vitalik, he drew this really clear line, almost dramatic, between the DeFi of, say,

01:462020 and DeFi Now. He explicitly said, security today is night and day compared to 2020.

01:53So what does that actually mean? What does that maturity look like in practice for you,

01:57the user?

01:58Well, it looks like moving away from just relying on humans, hoping they caught everything,

02:02towards more mathematical certainty. Back in the early days, protocols leaned so heavily

02:08on human audits. Often rushed ones, necessary, sure, but as we saw, fallible.

02:14Very fallible sometimes.

02:16Yeah. Today, the big change, the defining standard, really, is the widespread use of formal verification

02:22frameworks.

02:22Okay, unpack that a bit. Formal verification. What is it, and why is it, like, better than

02:28a traditional audit?

02:29Right. So formal verification basically uses mathematical proofs. It verifies that a piece

02:35of code does exactly what the specifications say it should do, period.

02:39Good mathematical proofs, okay.

02:40Think of it like this. An audit is like having a team of really smart people hunt for mistakes,

02:46which is good, but formal verification is more like a mathematical guarantee that whole classes

02:51of bugs, especially those tricky logic flaws that lead to big exploits, are just, well, impossible,

02:56by definition.

02:57Wow, okay.

02:58It takes a huge chunk of human error out of the equation for those critical smart contracts.

03:02That is a profound difference. It's not just checking for errors, it's designing errors

03:07out from the start. It shifts the burden from, like, constant watching to the code itself

03:14being reliable, immutable.

03:16Exactly.

03:17And this new benchmark you mentioned, the walkaway test, that seems to capture that shift perfectly.

03:22It's brilliant, isn't it? So simple. The test is, if the development team just vanished

03:27today, walked away, would your funds still be safe?

03:30Right.

03:31It forces security to be baked into the design of the code, not just rely on the team being

03:36there for, you know, maintenance or emergency patches.

03:39And the user side is improving too, right? The sources mentioned account abstraction and

03:43social recovery wallets being key for individual safety.

03:46Absolutely critical. Before, using a crypto wallet often meant, you know, guarding that 12-word

03:51seed phrase with your life, like one single point of failure.

03:54Yeah, terrifying.

03:55Account abstraction changes that. Your regular wallet starts behaving more like a smart contract

04:00itself, which sounds technical, but it enables really user-friendly stuff, like paying gas

04:07fees and different tokens, not just ETH, or, and this is huge, social recovery.

04:12So if you lose your phone or something.

04:13Exactly. If you lose access, you can designate, say, trusted friends or other devices you own

04:19to help you get back control instead of just complete loss. That's fundamental if you're

04:24going to treat this stuff as a serious savings tool.

04:27Okay. All this sounds incredibly positive.

04:28Yeah.

04:29Really nails that savings era idea. But let me push back a little.

04:33Please.

04:34The source material itself, it does mention these massive exploits still happening. You had

04:39the balancer exploit that was an audited protocol, right?

04:42It was.

04:42And you mentioned the huge Bybit incident in 2025.

04:45Yeah.

04:46So is savings era really the right term or is it still fundamentally, you know, a higher risk,

04:51higher reward investment era, just maybe slightly less risky?

04:54That's a fair and necessary challenge. We have to differentiate, I think. Vitalik was

04:59pretty clear that the structural integrity of the core DeFi ecosystem, think protocols like

05:06AAV, Uniswap that has radically improved, thanks to formal verification becoming standard mandatory

05:12audits. The types of failures are different now.

05:15How so?

05:15The balancer exploit, for instance, while definitely serious, was more a failure of a specific

05:20implementation detail. Something tricky that slipped past even a good audit. It wasn't

05:25like a fundamental flaw in how DeFi itself works or in the security model.

05:29Okay. A subtle but important distinction.

05:31Okay.

05:32And the big scary headline numbers from hacks.

05:34Yeah. Those are often really skewed by what you might call Blackson events, like that Bybit

05:38hack in 2025 you mentioned. That was a massive breach, yes, but of a centralized exchange.

05:44That's right.

05:44It was painful, cost a lot, but it doesn't really reflect the security improvements happening in

05:49the decentralized code, in the protocols themselves. Vitalik stresses this. Security is way better,

05:56but it's not perfect. You can't promise perfect. But the trend, the overall direction for structural

06:01safety, overwhelmingly positive. The floor is much, much higher today.

06:06Okay. I see the point. But you're right. All that security, the formal verification,

06:10it doesn't mean much if the network itself is unusable, like too expensive, too slow.

06:14Exactly.

06:15Which brings us straight to pillar two, scaling. Because nobody's going to use DeFi as their main

06:20bank if every single transaction costs 50 bucks. It takes five minutes to confirm.

06:25And this is precisely why Vitalik is so, so bullish right now. Because scaling, it's not just theory

06:30anymore. It's not coming soon. It's actually happening in production today. We saw that transition

06:35from theoretical papers to working systems happen incredibly fast.

06:39Right. The L1 plus L2 synergy, that's the key architecture. So Ethereum mainnet, the layer

06:44one, it handles the ultimate security, the final settlement. While the layer twos, the scaling

06:48solutions, mostly roll-ups, they handle the sheer volume, the speed.

06:52That's the model. And L1 itself is still getting better, mind you. They're increasing gas limits,

06:58basically making more room in each block on the main chain.

07:01But the real action, the speed, is on layer two.

07:03Oh, absolutely. The breakthroughs there are huge. L2s, they essentially bundle up big

07:07batches of transactions off-chain, process them super fast, and then just post a compact

07:12proof back to the secure L1. And the performance we're seeing, it's getting wild. The source

07:17material mentions systems like lighter hitting, what, 10,000 plus transactions per second already?

07:2310,000 TPS. Just to give you some context, Visa's often quoted peak capacities around like

07:2824,000 TPS. But their average is way, way lower.

07:32Right. So hitting STEEZ in the tens of thousands per second means these L2s are genuinely capable of

07:37handling massive transaction volume, like regional scale, maybe even global scale pretty easily.

07:43And it's not just fast, it's affordable again, which is key for the everyday user, right? Cost matters.

07:49The data is showing that using these roll-ups is now significantly cheaper than even using

07:53L1 was back in 2020 during DeFi summer. Wow.

07:57That drop in cost directly opens the door for, you know, global consumer use cases,

08:02not just high-value trader stuff.

08:04And it's not just raw speed and cost, there are also these architectural improvements making the

08:07whole system feel more predictable, less chaotic. The sources mention intent-based architectures and

08:16shared sequencing reducing MEV volatility. That's a mouthful.

08:20Yeah, it is a bit jargony. Yeah. Let's break it down. MEV, maximal extractable value. It's basically

08:24the profit that miners or nowadays validators can make by strategically reordering transactions

08:29in a block. Okay. Like front running.

08:32Kinda, yeah. Or sandwiching trades. This extraction, it often shows up to the user as wild swings in

08:37transaction fees or your transaction failing unexpectedly. It feels unstable, maybe unfair,

08:42like a hidden, unpredictable tax. Got it. So how do these new architectures fix that?

08:46Well, intent-based systems change the game. Instead of you sending very specific,

08:50complex instructions like, swap token A for token B on this specific DX at this exact price,

08:56you just declare your goal, your intent. Like, I want to end up with at least X amount of token B,

09:02starting with Y amount of token A, find me the best way.

09:05Ah, so you outsource the complexity.

09:08Exactly. Specialized solvers figure out the best execution path. And shared sequencing means

09:13different L2s can cooperate on ordering transactions more fairly and transparently

09:18across the ecosystem, put them together, and you dramatically reduce the opportunities for

09:23validators to extract that MEV unfairly. It leads to smoother, more predictable, and often cheaper

09:28transactions for everyone. Which loops back to the savings era idea. You need predictability,

09:33stability. Oh, you absolutely do.

09:35Okay. So we've covered the how, how to make it secure, how to make it scale. Now we hit the big

09:39one, the why. Why should someone, I don't know, in London or Lagos or Lima actually use DeFi

09:44instead of their normal bank or payment app? That brings us to pillar three, financial freedom.

09:51And this is where all that tech stuff, the scaling, the security connects right back to,

09:55well, real world human need. For a lot of people, especially in emerging markets or places

10:01with unstable governments, DeFi isn't some cool tech trend. It's a survival tool. The whole narrative

10:08shifts. It stops being about speculation, about number go up, and becomes about self-preservation,

10:14basic financial stability.

10:15What specific problems does DeFi help people escape from, according to Vitalik?

10:20He's very clear on this. It offers a shield, an alternative to politically compromised financial

10:25systems. That means things like protecting your savings from hyperinflation, which can just evaporate

10:30wealth overnight. It means protecting your assets from, say, arbitrary government freezes or sudden

10:36capital controls that trap your money. And it provides an option when the local banking system

10:41might be corrupt, inefficient, or just plain unreliable. So he really sees Ethereum not just

10:47as a tech platform, but as a kind of neutral utility. Exactly. He positions Ethereum as the neutral

10:52settlement layer for what he calls global freedom money, a system that's fundamentally permissionless,

10:59nobody can stop you from using it. Uncensorable. Nobody can block your transactions if they're

11:05valid and available to literally anyone with an internet connection. It's like the purest

11:10vision of alternative finance. But amidst all this, you know, the technical breakthroughs,

11:14the grand societal vision, Vitalik does offer a really important note of caution, a kind of

11:20philosophical boundary. He does. And it's crucial. He issues this very stark warning. Ethereum must

11:26absolutely avoid becoming a walled garden. A walled garden. Meaning? Meaning it has to stay true to its

11:32core principles. Open source. Interoperable, letting different systems connect easily.

11:36Permissionless. Censorship resistant. These have to be protected. He's clearly wary of trends that could

11:41lead towards more closed ecosystems. Like what kind of trends? Things like maybe proprietary technical

11:47standards that lock people in, or private roll ups that might prioritize profit or control for the

11:52operator over open access for everyone. His point is, if the very soul of Ethereum starts to feel

11:59centralized or restricted, then that whole mission of providing financial freedom,

12:03it kind of falls apart. That's the essential check, isn't it? The technical progress is amazing,

12:08but it's meaningless if it loses its core values along the way. It's the ultimate test, really. The

12:13technology absolutely has to remain open and accessible to the very people it's supposed to be helping

12:19escape centralized control in the first place. Okay, so let's try and synthesize this whole

12:23journey for you, the listener. We basically tracked the evolution from DeFi summer. Remember the

12:28craziness? Yeah. Flash loans, unaudited food tokens, huge implosions like Terra. Yeah, the wild

12:34speculation phase. To now, the emerging maturity of this DeFi savings era. And that maturity, you can see

12:41it, right? It's in the bedrock protocols like Lido for staking, AVEV for lending, Uniswap, especially with

12:47things like V4 coming online. And it's all underpinned by much more stable, reliable stable coins like

12:54USDC, like PYUSD. Right. This whole stack, the improved security, the proven scalability, these robust

13:01core applications, it really does seem to back up Vitalik's claim that DeFi is actually ready now to

13:07be a backbone for savings, for banking. It's not just a dev playground anymore. And, you know, as we were

13:14digging through all the source material for this, the transcripts, the research notes,

13:18detailing these complex changes, we stumbled on something pretty fascinating. Yeah, it was kind

13:23of meta, actually. It wasn't about the tech itself, but about, well, how this information gets out there,

13:28how this freedom on emission actually succeeds in reaching people. Right. The source material we

13:32analyzed, it actually highlighted the ongoing challenge everyone in this space faces. How do you

13:37get this complex but really important knowledge disseminated effectively? Because you can solve

13:43security, you can solve scaling. But if the people who most need these tools don't know how to use

13:48them safely or don't even hear about them, then what's the point? The mission stalls. Exactly. And

13:54the source itself pointed out implicitly how crucial community action is. You know, getting useful

14:01information seen, boosting its visibility in today's digital world, fighting the algorithms,

14:06it's a universal challenge. So things like supporting channels that actually take the time

14:11to break down this complexity. Yeah. You know, the standard stuff, subscribing, commenting,

14:16hitting the like button, the source, basically acknowledge that this stuff is actually fundamental.

14:21It helps ensure quality information about decentralized finance reaches the global audience that could

14:26benefit most. It's like part of preventing that walled garden from extending to information itself.

14:32It's a really interesting point. Disseminating freedom requires, well,

14:36disseminating the knowledge of it effectively. Yeah. Okay. So to wrap up this deep dive,

14:40let's leave you with a final thought, something to mull over, building directly on Vitalik's huge

14:45declaration. Okay. So if we take Vitalik at his word, if we accept the premise that scaling is essentially

14:52solved for practical purposes, you know, L2s hitting visa-like speeds and that security is genuinely

14:58night and day better because of things like formal verification. Right. If the tech hurdles are largely

15:03cleared. Then maybe the biggest remaining challenge for DeFi isn't technical capability anymore.

15:09Maybe the ultimate hurdle now is purely one of human trust. Hmm. Is the main thing holding back

15:14truly widespread adoption now just about perception, about education, about making users feel comfortable

15:20and secure rather than any fundamental technical limitation left to conquer? That's the big question,

15:26isn't it? Something for you to think about.

ETH Founder Says DeFi Is Ready for THE MASSES - Security FIXED

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