The saturation of the Ethereum blockchain at the height of decentralized finance (DeFi) is not an encouraging sign for the founder of the FTX exchange. According to Sam Bankman-Fried, Ethereum is simply not a sustainable solution for a DEX.
Ethereum blockchain scalability issues are not new. The publisher of CryptoKitties was experimenting with it in 2018. In order to promote the emergence of non-fungible tokens (NFT), Dapper Labs now has its own network, Flow.
But the saturation of Ethereum is of greater concern within the ecosystem, especially in the area of decentralized finance. Trading fees are skyrocketing and transaction processing is lengthening.
Ethereum "cannot host an exchange"
The CEO of decentralized exchange (DEX) FTX, and savior of SushiSwap, is therefore being scathing about Ethereum. "Ethereum cannot host an exchange," Sam Bankman-Fried said at the LA Blockchain Summit.
And the leader to drive the point home a little more. This is "not a lasting solution, at least not with Ethereum as it is now," he said. Sam Bankman-Fried recognizes, however, that Ethereum 2.0 or a Layer 2 solution can meet the expectations of a DEX.
But the current state of blockchain allows competitors to challenge its dominance. Moreover, to launch its decentralized derivative exchange, FTX made another choice than Ethereum. Serum is indeed based on the Solana blockchain.
The Solana blockchain in ambush on the DeFi
And Solana in fact plans to come and compete a little more with Vitalik Butterin's project. The company announces the release of a "decentralized bridge" for ERC-20 tokens, the Ethereum standard.
With Wormhole, Solana will therefore make it possible to transfer value between the two blockchains. Users will be able to convert their ERC-20 tokens into SPL tokens, the Solana standard. The project is currently in the audit and testing phase. Its launch should take place at the end of October.
Through Serum, the Solana blockchain is an alternative to Ethereum for DeFi investors. Wormhole is an additional option to get over Ethereum.
But the company is also working with other DeFi protocols to allow them to grow on Solana. These include Stardust, Terra, Ramp DeFi, Anchor and REN, its CEO told Cointelegraph.