Escalation solutions sometimes have a cost of decentralisation.
Most of the possible scale-up options for decentralised finance have a cost in decentralisation, according to Kosala Hemachandra, founder and CEO of the MyEtherWallet crypto wallet solution.
„From the perspective of fully decentralized block chains, there is no block chain that has a scalable solution good enough to support so many transactions,“ Hemachandra told Cointelegraph in an interview. „When you think about it from that perspective, Ethereum is the best solution there is.
DeFi has skyrocketed to 2020, and Ethereum is possibly the best option for most of the action, according to Hemachandra. As a result, escalation problems have emerged in the form of high fees.
„The reason we are seeing these extreme gas prices is because everything is happening at Ethereum,“ she explained. „If you think, okay, it will be better if everything moves to a different chain, unfortunately that will not be the case because that chain will also have some kind of difficulty in the performance of transactions,“ he added, referring to the problems of scale. „None of the chains that exist at the moment have a completely decentralised scaling solution“.
Hemachandra explained that DeFi could move to other high transaction per second frameworks, such as the delegated participation test, although such solutions have the cost of full decentralisation.
DeFi’s scaling has been a hot topic in recent weeks, and layer two solutions have recently appeared on the scene as a possible scaling option.