FTX CEO Sam Bankman-Fried doubts that even an updated version of Ethereum will be able to provide the scale required for the decentralized finance sector in the future.
Sam Bankman-Fried, co-founder and CEO of FTX, does not believe Ethereum can handle the growth of the decentralized finance sector.
In the Defiant podcast, Bankman-Fried suggested that the Ethereum blockchain is limiting the development of DeFi, and the only way to get around this limitation is to use other blockchains. He stated that whenever his team tried to create something new that they liked, they immediately exceeded the throughput of the Ethereum blockchain by orders of magnitude. According to him, his team tested over 30 blockchains, including Ethereum, before deciding to build their Serum DeFi project on the Solana blockchain due to its speed and infrastructure.
“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 believes that the DeFi space will be used by a billion people in the future, which means that blockchains will need to significantly expand their capabilities to support such a user base. Even an updated and scaled Ethereum 2.0 network will not be enough for such growth.
“Not just 100 times faster than Ethereum, we need, like, a million times faster than Ethereum.”
Due to the rapid growth of the DeFi sector, most of whose projects use the Ethereum blockchain, the Ethereum network has become severely overloaded. This summer, transaction fees on Ethereum jumped to a record $13.
The launch of Ethereum 2.0 phase zero is expected on December 1. The balance of the deposit contract, which will be used for staking, has already accumulated more than 53,000 ETH. This is about 10% of the amount required for the launch. The minimum deposit amount for staking per address is 32 ETH.