Scalability solutions sometimes come at the expense of decentralisation.
Most of the scalability options of decentralised finance, known as DeFi, charge the bill in decentralisation, according to Kosala Hemachandra, founder and CEO of the MyEtherWallet portfolio solution.
„From a fully decentralized blockchain perspective, there is no blockchain that has a good enough scalability solution to support so many transactions,“ Hemachandra told the Cointelegraph in an interview. „When you think from that perspective, Ethereum is the best solution there is.
The DeFi sector exploded in 2020, with Ethereum no doubt being the first choice for most of the action, according to Hemachandra. As a result, scalability problems arose in the form of high rates.
„The reason we are seeing these extreme gas prices is because everything is happening at Ethereum,“ he explained. „If you think, okay, it will be better if everything goes to a different chain, unfortunately that won’t be the case because that chain will also have some kind of difficulty in processing the transaction,“ he added, referring to escalation issues. „None of the networks out there now have a fully decentralized sizing solution“.
Hemachandra explained that DeFi could make the transition to other high transaction structures per second as evidence of delegated wagering, although these solutions cover the cost of full decentralization.
DeFi sizing has been a hot cryptographic topic in recent weeks, with second tier solutions coming on the scene recently as a potential sizing option.