{"id":164343,"date":"2021-01-27T20:30:28","date_gmt":"2021-01-27T17:30:28","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/defi-users-shouldnt-wait-idly-for-eth2-to-hit-its-stride\/"},"modified":"2021-01-27T20:30:28","modified_gmt":"2021-01-27T17:30:28","slug":"defi-users-shouldnt-wait-idly-for-eth2-to-hit-its-stride","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/defi-users-shouldnt-wait-idly-for-eth2-to-hit-its-stride\/","title":{"rendered":"# DeFi users shouldn\u2019t wait idly for Eth2 to hit its stride"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2933d60d210\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2933d60d210\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-users-shouldnt-wait-idly-for-eth2-to-hit-its-stride\/#Is_Ethereum_20_taking_too_long\" >Is Ethereum 2.0 taking too long?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-users-shouldnt-wait-idly-for-eth2-to-hit-its-stride\/#Ethereum_has_hit_its_limits\" >Ethereum has hit its limits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-users-shouldnt-wait-idly-for-eth2-to-hit-its-stride\/#Bitcoin_can_become_the_king_of_DeFi\" >Bitcoin can become the king of DeFi<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-users-shouldnt-wait-idly-for-eth2-to-hit-its-stride\/#DeFi_needs_Bitcoin_to_survive\" >DeFi needs Bitcoin to survive<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-users-shouldnt-wait-idly-for-eth2-to-hit-its-stride\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># DeFi users shouldn\u2019t wait idly for Eth2 to hit its stride <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjAtMTIvYjE5MzZiOTEtN2FkOS00YTQ4LTg3NmMtYTkzYzI5NjU0ODJjLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>Many people are anxiously observing the launch of Ethereum 2.0 because the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> has touted it as a \u201c<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>-changer\u201d for the cryptocurrency industry. Yet the masses seem to forget there are viable alternatives in existence already.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_Ethereum_20_taking_too_long\"><\/span>Is Ethereum 2.0 taking too long?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In recent days, there has been ample excitement surrounding Ethereum 2.0. The beacon chain deposit contract successfully achieved enough deposits to launch Eth2 Phase 0 in December 2020. That is only the first stage, however, and full functionality isn\u2019t expected to go live within the next two years \u2014 or perhaps even longer. Therefore, it will take a while before anyone can see if Ethereum 2.0 can ever do what it claims.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Ethereum 2.0: Less is more&#8230; and more is coming<\/em><\/strong><\/p>\n<p>The launch of Ethereum 2.0 is needed in order to save the network from itself. Ongoing network congestion and mounting gas fees have cramped the network far too often. Ever since the DeFi industry started gaining more traction, these problems have only become more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>arent. Finding a permanent solution is mandatory, but it\u2019s not necessarily easy or straightforward.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Ethereum 2.0\u2019s long and winding road to scalability launch<\/em><\/strong><\/p>\n<p>One pro-Ethereum 2.0 argument is that there are layer-two scaling solutions to alleviate congestion. Innovative ideas including Loopring exemplify that things can be done differently. However, these layers are not used in a broad sense and may never be. Such integration may offer short-term relief but is far from a long-term solution.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Ethereum will become the main asset for investors in 2021<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ethereum_has_hit_its_limits\"><\/span>Ethereum has hit its limits<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>From a design point of view, the current iteration of Ethereum \u2014 or Eth1 \u2014 is far too constricted because it\u2019s not designed to scale in a significant manner. It\u2019s a bit unusual, as the project has always been marketed as a haven for developers looking to experiment with blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>. More applications, projects and services only result in more congestion, leaving users dissatisfied. <\/p>\n<p>Considering how this network is the main hub for financial innovation, a different approach is warranted. While Ethereum technology is flexible and modular in some ways, it is also home to failures, hacks, unsafe code and so forth. Moreover, few projects extend beyond Ethereum itself even though cryptocurrency is so much bigger than the Ethereum ecosystem itself.<\/p>\n<p>This becomes apparent when looking at the current DeFi landscape. Hundreds of projects have come and gone, yet few remain standing. Of those remaining projects, none of them introduces cross-chain support. It is all about catering to Ethereum users, even though it isn\u2019t the most liquid ecosystem.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Ethereum 2.0 to boost DeFi but delayed launch may set the network back<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_can_become_the_king_of_DeFi\"><\/span>Bitcoin can become the king of DeFi<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Exploring opportunities in the world of decentralized finance should require Bitcoin (BTC) support by default. Unfortunately, that\u2019s not the case today. It is true that some DeFi projects support Wrapped Bitcoin (WBTC). This tokenized version of Bitcoin adheres to the ERC-20 token standard, which, in my opinion, is an unnecessary hurdle that should not even be present.<\/p>\n<p>Given Bitcoin\u2019s market cap and overall cryptocurrency dominance, the current situation is rather baffling. The lack of support for the number one cryptocurrency in its native form is a glaring problem. None of the major DeFi projects appears intent on changing its business model to incorporate Bitcoin either. A clear sign of lacking innovation in decentralized finance.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>DeFi won\u2019t last long without unlocking Bitcoin\u2019s $250B treasure chest<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"DeFi_needs_Bitcoin_to_survive\"><\/span>DeFi needs Bitcoin to survive<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Although decentralized finance is popular in its current form, it remains a fairly niche market today. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/defipulse.com\/\">According<\/a> to DeFi Pulse, there\u2019s over $23 billion in total value locked across top Ethereum DeFi platforms. Of that amount, over $3 billion comes in the form of WBTC \u2014 a clear sign of what investors and speculators want to see in the future.<\/p>\n<p>Rather than focusing only on Ethereum, the more accurate strategy will be to explore all the other major currencies. And the approach of supporting crypto assets that are not Ether (ETH) is unusual. There are other DeFi projects that are more than happy to support Ether and tokens issued on that blockchain.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There is nothing wrong with waiting for Ethereum 2.0 to reach its full potential. However, at this time, no one knows how long it will take. In the meantime, there\u2019s no reason to convert existing assets such as Bitcoin or XRP to Ether because those assets can be put to use through cross-chain solutions.<\/p>\n<p>Additionally, one has to wonder if the Ethereum 2.0 upgrade will genuinely solve Ethereum\u2019s problems. On paper, it seems to be a big network upgrade. In reality, everything has yet to be proven and verified by the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> public. There are other options available today, and they offer working technology built by world-class engineers. Besides, keeping all options on the table is often preferred over putting all your eggs in one basket.<\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Sarah Austin<\/strong> is head of content for Kava Labs, a DeFi-for-crypto startup company based in Silicon Valley. Sarah is the host of the web show <em>Decentralized Finance<\/em>. She is an entrepreneur, author and TV personality who has formerly worked with Forbes, MTV and Bravo and was marketing manager for Oracle, SAP and HP.<\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/defi-users-shouldn-t-wait-idly-for-eth2-to-hit-its-stride\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# DeFi users shouldn\u2019t wait idly for Eth2 to hit its stride &#8221; Many people are anxiously observing the launch of Ethereum 2.0 because the media has touted it as a \u201cgame-changer\u201d for the cryptocurrency industry. Yet the masses seem to forget there are viable alternatives in existence already. Is Ethereum 2.0 taking too long?&#8230;<\/p>\n","protected":false},"author":1,"featured_media":164344,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjAtMTIvYjE5MzZiOTEtN2FkOS00YTQ4LTg3NmMtYTkzYzI5NjU0ODJjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74868,74891,75326,4965],"class_list":["post-164343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-defi","tag-ethereum","tag-ethereum-2-0","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/164343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=164343"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/164343\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/164344"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=164343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=164343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=164343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}