Hotel Manager turned Crypto Journalist and TA Trader.
The Ethereum community has been awkwardly quiet in the face of ETH 2.0 difficulties. Many DeFi projects are playing the waiting game on implementing layer two solutions or wait for good news from Vitalik Buterin.
In the face of great interest in the cutting-edge of finance, i.e., DeFi caused Ethereum to fail (relatively speaking) in its current form. Smart contract transactions now routinely cost more than $100 to execute, and some rather complicated market equalizing flash loan transactions can up to $2000.
Even activating DeFi projects can lead to unnecessary expenditures, since associated with each action is an ETH price tag. Often entering DeFi product positions requires at least two transactions, doubling users’ expenses. While deep-pocketed DeFiers will be able to make sense of these fees, most retail investors that are looking to learn about the latest trends in crypto can only watch from the sidelines.
Since its inception via Bitcoin, crypto has been about inclusion and decentralization. Everybody could be a part, until now. By design, financial incentives are the only factor that decides who gets to use the EVM, and that’s a good thing.
However, when too many people start using the EVM for swaps, staking, farming, pooling, loaning, and governance, it becomes a real problem. We need DeFi devs to go ahead and pick one of the viable layer two solutions right now.
The main reason why DeFi projects haven’t already started implementing layer two solutions is ETH 2.0’s promise. Limited time and resources mean that this is an either-or decision, where one decision cancels the other, at least temporarily.
There is a chance that ETH 2.0 will be