Here are some opinions by decentralized finance experts on Bitcoin or Ethereum as the future of DeFi. One of the promising and fast-growing trading environments in the blockchain and cryptocurrency space is decentralized finance. The total asset value linked to DeFi is almost hitting the $40 billion mark

this month, an indicator of a 200 times rise in value since February 2019. We are only at the beginning of 2021, which signifies key improvements to the DeFi space.

We are witnessing key changes in the world, thanks to DeFi. Many argue that it is starting to move to actual decentralization (from Web 3.0 campaign to decentralized governance). Other people see it as the answer to the future of banking and broken legacy finance.

Despite all the advantages you get from DeFi, we must address some challenges. The success of this ecosystem in the future relies on safe and authentic data, free from exploitation and, therefore, less open to attack. This needs the use of quality-control features. Enhancing the speeds of transactions and the peer-to-peer feature are also vital issues that will help gain broad acceptance and viability to the sector.

Impediments

Currently, the key impediment for the development of DeFi is the steadily rising gas rates on Etehereum. It was above the $1,000 mark this month. As the anticipated Ethereum 2.0 transition (which aims to sort out this problem) ‘will rescue the moment,’ some say DeFi users should not wait for Eth2 to demonstrate what it says it can do.

Without a doubt, ETH has overtaken BTC as the top DeFi protocol network and infrastructure. However, certain experts indicate that “it’s difficult to imagine a space where there is no BTC use in DeFi products.” Other experts claim that BTC “will be compelled to confound its supply limit of 21 million to stay relevant and sustainable” since DeFi keeps flourishing and growing.

We talked to several experts in the DeFi ecosystem for their word on the following issue: Will DeFi continue being exclusive on Etehreum or grow on other layer ones, or will fresh projects that add smart contracts to BTC take its idea?

“Am always in contact and experimenting with DeFi regularly, and always follow all happenings closely. We are still at an early stage, but currently, the advantage of first-mover and infrastructure set up on ETH gives its environment a running start. I foresee a future where DeFi infrastructure will have a multichain universe, where minimal security is required for data, and you can synchronize and settle transactions.

Always remember that the main point is trust in DeFi but not performance. Certain complicated monetary transactions available in DeFi may cost higher in rates and offer minimal trust and offer minimal trust and more authority when you compare them with working in centralized finance systems.”

Amadeo Brands, Chief Technology Officer of DeFi Capital

“Is the question yet to be answered? DeFi is available on several other chains. Doesn’t look debatable.”

Andre Cronje, Founder of Yearn.finance and Independent DeFi Developer

“Despite ETH being the inventor of smart contracts, its wide size of infrastructure makes it slow-paced. This is related to the changes it has to accustom to user needs in the modern market. There has been a continuous rise in gas fees since the blossom of DeFi. Since fees used on the ETH network hit a record high, it played a part in others breaking it. We should not forget that recent gas fees on the ETH network may be higher than the yearly percentage yield they will earn from staking in a complete year for most small investors in the retail sector.

Projects like Stacks 2.0 plan to make BTC automatic. However, I think the primary function of Bitcoin will remain unaffected as a lasting depot of valuable assets. This is the most sought-after functionality because BTC is the most dominant cryptocurrency in the market today.

My thoughts are DeFi space winners will be quick movers with booming technology. A perfect example is Project Serum, built on the quick Solana Blockhain and has less expensive transaction rates, coupled with increased liquidity. It can also be operated with both BTC and ETH. As long as the leading crypto trading platforms support direct and instant withdrawals to these assets, they will succeed.”

Anthony Khamsei, Golden Algorithm Founder

“DeFi began with the ethics of open unauthorized access, which drives competition and quality financial products for more people worldwide. We have seen this with SushiSwap/Uniswap, stablecoin battles, and more. We should support that type of competition is healthy.

Will we spot DeFi and other different chains? Absolutely, yes.

The same way BTC commands the store-of-value use in cryptocurrencies, ETH also commands a great lead-in ‘unauthorized access settlement’ use case. It is visible in satblecoin volumes/usage (Ethereum overshadows other L1s) and multichain bridges with ETH mainnet most of the time. We will see several L1s and L2s assertively include DeFi products, but many of them will be linked back to ETH for the last settlement that is censorship-resistant. We believe that we are at the start of a 10-year long cycle full of innovation and interesting applications in the DeFi ecosystem across several L1 and L2 blockchains.”

Corbin Page, Head of Product at ConsensysCodefi

“ETH is still the key interest for serious builders in the sector. Other layer ones like Avalanche, Solana, Polkadot, and Binance Smart Chain are starting to accrue talent and interest. We are working with Tidal Finance and Reef Finance to merge into their insurance and yield farming pools. We are also working with Avalanche, and we will deploy on BSC with time.”

Kyle Kistner, bZx Co-founder

“My strong belief is that DeFi will stick on ETH. If it moves to a more flexible L1, it will be a winner takes all affair.”

Rune Christensen, Maker Foundation CEO
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