Sam Bankman-Fried, FTX Exchange Co-founder and CEO, believes Ethereum (ETH) is unable to deal with the DeFI rise. Speaking to Camila Russo from the Defiant Podcast, Bankman-Fried says that the Ethereum blockchain is restricting the growth of DeFi and the only way around it is to build on other networks. “At some point, it’s just clear that we weren’t getting around that. Either, we’re going to build it on Ethereum, or we are going to build something that we thought was going to be really exciting, but not both.”
Bankman-Fried claims to have checked more than 30 blockchains, like Ethereum, before choosing to develop his DeFi project Serum on the Solana blockchain because of its speed and infrastructure. Bankman-Fried claims that one day DeFi could be used by one billion users, which means that a 10-figure user base will need to be massively expanded by blockchains. Even scaling improvements in ETH 2, won’t provide enough capacity for what SBF has in mind: “Not just 100 times faster than Ethereum, we need like a million times faster than Ethereum.”As Cointelegraph.com reported, Solana CEO and founder Anatoly Yakovenko repeated Bankman-Frieds thinking that Etherem’s current version is so poorly built, the hardware requirements for its 15 transactions per second network isn’t much below that needed by Solana, now operating between 500 and 600 TPS. Not everyone is writing Ethereum off, however. DappRadar communications director Jon Jordan told Cointelegraph in June that he believes Ethereum 2.0 will benefit DeFi greatly. He believes the introduction of sharding chains and Proof of Stake (PoS) consensus model will solve some of the most fundamental issues of DApps, considerably increasing transaction speed and throughput.