Sam Bankman-Fried, co-founder and CEO of FTX Exchange, believes it is Ethereum (ETH) is unable to handle the growth of decentralized funding (DeFi)..
Bankman-Fried speaks to Camila Russo from the Defiant Podcast The Ethereum blockchain restricts DeFi from developing. The only way to avoid this is to build on top of other networks.
“It’s clear that at some point we would get there. Either we’re going to build this on Ethereum, or we’re going to build something that we thought would be very exciting, but not both.”
I announce that Every time his team tried to build something new they were excited about, “they instantly outperformed the Ethereum blockchain by orders of magnitude”..
Bankman-Fried notes that tried more than 30 blockchains including Ethereum, before you decide to build your DeFi Serum project on the Solana blockchain due to its speed and infrastructure.
Bankman-Fried is of the opinion DeFi could one day be used by a billion people, meaning blockchains will have to dramatically expand their scaling capabilities. to support a ten digit user base. Even upscaling in ETH 2 does not offer enough capacity for what SBF is up to:
“Not only are we 100 times faster than Ethereum, we also need about a million times faster than Ethereum.”
During the DeFi boom in recent months The growing popularity of DeFi protocols with Ethereum technology overloaded the Ethereum network and increased fees to over $ 15. When Ethereum 2 is fully functional, it can be scaled 100 to 1000 times.
Solana CEO and founder Anatoly Yakovenko, who was also on the podcast, echoed Bankman-Fried’s thinking and explained it The current version of Ethereum is so poorly designed that the hardware requirements for the 15 transactions per second network are not much lower than the requirements of Solana, which currently processes 500 to 600 TPS.
However, not everyone writes off Ethereum. Jon Jordan, DappRadar’s chief communications officer, told Cointelegraph in June that he believes Ethereum 2.0 will benefit DeFi enormously. He thinks, that The introduction of sharding chains and the Proof of Stake (PoS) consensus model will solve some of the most fundamental problems faced by DApps and will greatly increase the speed and performance of transactions.
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