Second layers will save the day in 2021, bolstering Ethereum and DeFi
When the decentralized finance sector exploded in summer 2020, it was an eye-opening moment that showed crypto’s actual capabilities to revolutionize finance. However, the boom also exposed a lot of vulnerabilities of the network, which most DeFi projects are built upon. The most serious ones included high gas costs and low scalability.
A bull cycle has kicked in since then, lifting Ether’s (ETH) value to a new all-time high — and now the above-mentioned problems are even more persistent. People are forced to pay as much as $60 to $100 to complete a single trade on Uniswap, while numerous DeFi projects are struggling to facilitate their transactions on the Ethereum chain in time, failing their users as a result. An unending cycle of bullish news doesn’t help, as it unintentionally distracts the community from those problems. It has been two days, and your transaction is still pending? But look at the charts: Ether price has been exploding, and one of the institutional funds has announced it is buying X million (BTC)!
Chandler Song is the co-founder and CEO of Ankr Network, a Web 3.0 infrastructure company based in San Francisco, and a Forbes “30 Under 30” laureate. He previously worked as an engineer at Amazon (NASDAQ:) Web Services.
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