There is an increasing demand to bring things to where they are supposed to be as far as Ethereum blockchain is concerned. Right from its launch, the main purpose of the blockchain network was to diversify the next generation internet. The aim was and still is to decentralize the internet by creating a peer-to-peer network.
Great innovations in the recent past have seen the network grow to a powerhouse in the crypto space. In 2020 alone we have witnessed robust growth in the blockchain following the rise of DeFi projects like Yearn farming, Uniswap, Synthetix, Aave to name a few. Now the top ten decentralized applications on the blockchain network attract nearly a million users per month.
Most of these projects are community-based and revolve around raising funds to eventually share with various stakeholders. With a booming economy comes the unsuspected “criminal enterprises” whose sole goal is to steal from unsuspecting investors. These criminals operate through “get rich quick” schemes which end up locking up collateral.
There is a need to create a system that benefits community projects as time goes by. An ideal system that is built on the main focus of the infrastructure of the protocols and the Ethereum blockchain. Do you think this is possible?
To achieve this, the community needs to go back to the drawing board. To create a network of this nature, one which focuses on the original aim of Ethereum. The community needs to focus on long-term goals and sustainability. The aim here is to create a system that benefits the entire ecosystem as opposed to quick gains.
2021 holds a great opportunity for the community to redeem itself by delivering long-term solutions. This can be achieved through inventing advanced decentralized technology that is sustainable in building financial returns for the ecosystem and the infrastructure of different projects. Once this is done the community will be moving towards sustainability for its betterment.
The Math of DeFi and Its Complications
The skyrocketing of DeFi is good for the network but has brought with it some complication. Do you agree? Well, the rise of DeFi has come along with greater promises of a brighter future. Also of even greater investment opportunities for the community and prospect investors.
As indicated before the booming gains made by the greatest invention in the entire crypto space have attracted bad actors who earned a living through unscrupulous deals. The rise of these criminal enterprises has greatly affected the blockchain through congestion and unsustainable projects on the protocol.
This has led to a high gas fee as users pay exaggerated fees just to transfer ETH (Ether). The skyrocketing ETH gas fees bring a lot of imbalance in the blockchain network due to the financial barrier for many investors and traders looking to use DeFi applications but are not holding huge amounts of ETH (Ether).
The Brighter Side
The recent launch of the layer-two solution better known as ETH 2.0 holds a brighter feature for the network. With such innovations, the network is moving towards achieving sustainability. Many of the projects on the protocol are looking forward to making the network scalable by taking advantage of the layer-two infrastructure. Ethereum incorporates solutions like the optimistic rollups and zero-knowledge rollups in its layer-two updates.
The community needs to bring back the ethos of the protocol right at the heart of Ethereum as ETH 2.0 is building up. By doing so, the community will assure financial returns into the underlying ways of maintaining the protocol and its infrastructure as community-driven layer-two solutions gain popularity due to their impact on the entire crypto ecosystem.