Cryptocurrencies

“Ethereum 2 (ETH) won’t solve anything”, DeFi Experts pessimistic – Cryptocurrencies

Will Ethereum 2.0 be able to meet the challenges of DeFi?

It’s a bit like those westerns where you look forward to the cavalry – which usually arrives on time – to save the “good guys” and, so that they can finally triumph over their enemies. Ethereum (ETH) 2.0 may land with all trumpets, but it may ultimately be unable to resolve network scalability issues.


A new version does not solve the current problems

Ethereum hardly follow the pace of transactions with a booming DeFi ; the network is bending under the weight of DeFi, transaction fees are exploding.

The progression ofEthereum however, is not affected by these scalability issues at this time; hopes for viable solutions to these now rest on the shoulders ofEthereum 2.0.

The passage of Proof of Work to Proof of Staking should theoretically allow theETH to provide lasting solutions to current concerns relating to the development of activities on the network.

This theory is not unanimous in the community, however. ETH. During the “DeFi Marathon” organized by Cointelegraph China, computer scientists shared their thoughts on the subject.

Sergej Kunz, Mounir Benchemled, and the teacher Alex kumanovic, agree that the architecture ofEthereum 2.0 has many tradeoffs and, is not scalable enough to improve network scalability.

They believe that for practical reasons not all projects should move to Ethereum 2.0.

Moreover, this new update did not take into account DeFi developments but at this stage, rethink the architecture ofEthereum 2.0 would further delay the release of the latter.

The tools are there, you just have to use them

Other solutions are already being tested like the level 2 overlays developed in parallel to the basic protocols.

Benchemled however, raises the difficulty of explaining how these solutions work to end users.

According to Benchemled, users must immediately take advantage of existing tools.

The society BloXroute founded by Kumanovic, has for example set up an infrastructure based on the tool Tx Stream, which integrates 3 APIs.

These APIs are specifically designed to allow traders to trade their trades faster, giving them an advantage in scenarios where speed is essential.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

For Ethereum 2.0 to provide real solutions to today’s problems, it would have to be launched already. It’s just theory at this point, ETH 2.0 may well fall into obsolescence from its late launch, given the current dynamics of DeFi.

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