The challenges ahead for the Decentralized Finance
As DeFi projects flock to Ethereum, experts warn the network is not yet ready to support the frenzy.
Many industry players feel Ethereum did not anticipate the DeFi hype, and even with the upcoming network upgrade, Ethereum 2.0, the network is still not ready to service DeFi.
Ethereum 2.0 should improve performance, but its high gas prices may scare off new users.
At the same event, Mounir Benchemled, founder and CEO of middleware layer ParaSwap, pointed out that the complexity of explaining how layer-2 works to end-users “and the risk of not being able to pay the funds immediately to these users” cause the most concern. Benchemled also said that it is not practical for all DeFi projects to move to Ethereum 2.0:
“For it to work, all applications would need to move towards one single platform. Major projects might have consensus. However, for other projects who have their own agendas, it might be hard. New bridges will be built to allow interoperability.”
Despite the challenges ahead for the Ethereum blockchain, Morpher’s Froehler joins the other pro-DeFi voices in saying, “DeFi is here to stay.”
Join CreditDefi Community: