FTX CEO: Ethereum 2.0 cannot handle DeFi load

FTX chief executive Sam Bankman-Fried says Ethereum 2.0 will not cope with the load that the DeFi sector could potentially deliver. He said this during the Defiant podcast.

He regards the blockchain of the second-largest cryptocurrency as a bottleneck for the growth of decentralized finance.

“Either we keep building on Ethereum, or we will create something really outstanding, but not both at once,” Bankman-Fried said.

Potentially, the number of DeFi users could reach a billion, which would require substantial network scaling. The only way to solve the problem, the FTX head argues, is to use another network:

“Not just 100 times faster than Ethereum; we need a solution that is a million times faster than Ethereum.”

The rise of DeFi apps is weighing on other transactions in the Ethereum network, Covalent, an analytics startup, said in March.

In September, the average fee on the network of the second-largest cryptocurrency surpassed $10.

Some developers doubted that the launch of Ethereum 2.0 would solve the problem of high transaction costs, because the second version of the protocol “not sufficiently scalable and secure.”

Follow ForkLog news on Twitter.