As we all know, the Ethereum and Bitcoin blockchains are due an upgrade, especially Bitcoin. The issue of scalability has become a growing cause of concern for community members seeking a truly decentralized platform to execute transactions.
Currently, the Ethereum network is working for an upgrade tagged Ethereum 2.0 which will see the network switch from the inefficient Proof-of-work (PoW) consensus to a more efficient and secure Proof-of-stake (PoS).
While most experts have varying opinions on this upgrade, Bohdan Prylepa, CTO of Prof-it Blockchain shared his opinion on the network upgrade, how decentralized financial (DeFi) are springing up as well as the SEC’s regulatory stick on Ripple’s XRP.
Comparing the Ethereum blockchain to Bitcoin’s, Mr. Prylepa unequivocally stated that the former is more active and capable of carrying out more TPS (transactions per second). He referred to the recent Ethereum 2.0 upgrade as one that is needed for the DeFi market as Ethereum is the main network for the development and launch of these platforms.
When speaking on DeFis, the CTO stated that these platforms are the new foundations of the financial industry, albeit reliant on blockchain and smart contracts.
“A couple of years back, only a few people were banking with decentralized exchanges and protocols designed to give traditional banks a run for their money. Now we have Uniswap, Aave, DyDx, Maker, and other decentralized platforms that according to some may be “basic” but in sincerity, they're laying the foundation for the global takeover”, Mr. Prylepa said when asked about his view on the unprecedented growth of this fast-paced yet nascent trend, DeFi.
While there will be mild and aggressive resistance from the government according to Mr. Prylepa, the foundation has been laid with the influx of various DeFi platforms.
“I think the future will be a hybrid system where banks and other traditional financial institutions carry out their primary roles and DeFi acting as a support system”.
Although experiencing a significant boom, the DeFi market is experiencing one major issue — the high cost of gas on Ethereum. It has become one common cause of worry for developers.
When asked about this, Bohdan Prylepa revealed that there's a plan in place to upgrade the Ethereum blockchain as rightly mentioned earlier. Additionally, he further revealed that the network's primary developer Vitalik Buterin is currently focusing on faster solutions like the Optimistic Rollups.
About the increasing cost of gas on the network, Bohdan believes this is because of the increasing number of network users.
“The higher the demand and usage of this network, the higher the price of ETH”.
Bohdan Prylepa also talked about the Cardano project which has gained traction after billionaire Elon Musk made insinuating references to it on his Twitter feed. With the project’s developer stating that Cardano will reach and maybe surpass Ethereum’s nature of decentralization, Mr. Prylepa like others has vowed to keep a close eye on this emerging project.
In conclusion, Bohdan Prylepa revealed that the SEC’s lawsuit against XRP is proof yet again that the success and adoption of cryptocurrencies are partly reliant on country regulations.
In reference to the decision to delist XRP on various exchanges, Mr. Prylepa referred to this as a “knee-jerk” decision that was taken mainly by centralized exchanges.