Crypto News

No single blockchain can carry all of DeFi right now, MyEtherWallet founder says

Most of decentralized finance’s potential scaling options come at the cost of decentralization, according to Kosala Hemachandra, founder and CEO of crypto wallet solution MyEtherWallet. 

“From a perspective of fully decentralized blockchains, there’s no blockchain that has a good enough scaling solution to support this many transactions,” Hemachandra told Cointelegraph in an interview. “When you think from that perspective, Ethereum is the best solution out there.”

DeFi has boomed in 2020, with Ethereum arguably being the top choice for most of the action, according to Hemachandra. As a result, scaling issues have surfaced in the form high fees. 

“The reason why we are seeing these extreme gas prices is because everything is happening in Ethereum,” he explained. “If you think, ok it’ll be better if everything moves to a different chain, unfortunately that’s not going to be the case because that chain will also have some type of difficulty in transaction throughput,” he added, referring to scaling issues. “None of the chains out there right now has a fully decentralized scaling solution.”

Hemachandra explained DeFi could transition over to other high transaction-per-second frameworks, such as delegated proof-of-stake, although such solutions come at the cost of full decentralization. 

DeFi scaling has been a hot crypto topic in recent weeks, with layer-two solutions recently coming onto the scene as potential a scaling option.

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