FTX CEO: Even if ETH 2.0 is launched, it cannot solve DeFi’s scalability requirements
Sam Bankman-Fried, co-founder and CEO of FTX Exchange, believes that Ethereum (ETH) cannot cope with the growth of decentralized finance (DeFi).
In an interview with Camila Russo, founder of the “The Defiant” podcast, Bankman-Fried said that the Ethereum blockchain limits the development of DeFi, and the only way to bypass this restriction is to build DeFi on other networks.
“To some extent, it is clear that we have not solved this problem. We either build DeFi on Ethereum, or build something that we think is very attractive, but we can’t build both.”
Bankman-Fried said that some of the new products his team created “exceed the throughput of the Ethereum blockchain by orders of magnitude.”
Bankman-Fried claimed that due to the speed and infrastructure of the Solana blockchain, he decided to build his DeFi project Serum on this blockchain. Before that, he had tested more than 30 blocks including Ethereum chain.
Bankman-Fried believes that DeFi will have 1 billion users one day, which means that the blockchain needs to greatly improve its scalability to support a 10-digit user base. Even if the scalability of ETH 2.0 is improved, it cannot meet his expectations:
“What we need is not just 100 times faster than Ethereum, but 1 million times faster.”
During the DeFi boom in recent months, the increasingly popular Ethereum-based DeFi protocol caused serious congestion on the Ethereum network-transaction fees soared to more than $15. When Ethereum 2.0 is officially launched, its scalability can be increased by 100 times to 1000 times.
Solana founder and CEO Anatoly Yakovenko also responded to Bankman-Fried’s thoughts on the podcast, pointing out that the current version of Ethereum is not well designed, and the hardware requirements for processing 15 transactions per second are not under Solana’s needs. Solana currently It can process 500 to 600 transactions per second.
However, not everyone has given up on the Ethereum blockchain. In June, Jon Jordan, DappRadar’s public relations director, told Cointelegraph that he believed that Ethereum 2.0 would benefit DeFi a lot. He believes that the introduction of the shard chain and Proof of Stake (PoS) consensus mechanism will solve some of the most basic problems in DApps and significantly improve transaction speed and throughput.
