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Wednesday, October 7, 2020

THERE IS NO BLOCKCHAIN THAT CAN ACCOMMODATE THE DEVELOPMENT OF DEFI


 

The very rapid development of Decentralized Finance (DeFi) does not seem to be in line with the development of the basic blockchain network. This is because the DeFi platform uses existing blockchain networks such as Ethereum and increases network density, as well as high gas costs.


According to the founder and CEO of crypto wallet solution, MyEtherWallet, Kosala Hemachandra most of DeFi's potential scaling options will inevitably also increase the costs of the decentralized system.


Quoted from Cointelegraph, Hemachandra expressed his opinion regarding this issue.


"From the perspective of a fully decentralized blockchain network, (to date) no blockchain has a sufficiently good scaling solution to support many of these transactions."


The Ethereum network is becoming a popular network among yield farming developers. This is because the network is open-source. However, the very low scaling capability results in network congestion and high gas costs.


Moreover, for now Ethereum 2.0 which is predicted to be a solution to network congestion on the previous network, is still under development. There is no official date when the network will be released to the public.

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