{"id":175763,"date":"2021-02-11T14:01:11","date_gmt":"2021-02-11T11:01:11","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/finance-redefined-is-this-the-escape-from-ethereum-feb-3-10\/"},"modified":"2021-02-11T14:01:11","modified_gmt":"2021-02-11T11:01:11","slug":"finance-redefined-is-this-the-escape-from-ethereum-feb-3-10","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/finance-redefined-is-this-the-escape-from-ethereum-feb-3-10\/","title":{"rendered":"# Finance Redefined: Is this the escape from Ethereum? Feb. 3\u201310"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 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-6a35fdd63a4cb\" 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-6a35fdd63a4cb\" 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\/finance-redefined-is-this-the-escape-from-ethereum-feb-3-10\/#What_makes_a_successful_Ethereum_competitor\" >What makes a successful Ethereum competitor?<\/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\/finance-redefined-is-this-the-escape-from-ethereum-feb-3-10\/#Ethereum_community_acts_to_secure_its_lead\" >Ethereum community acts to secure its lead<\/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\/finance-redefined-is-this-the-escape-from-ethereum-feb-3-10\/#In_other_news\" >In other news<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Finance Redefined: Is this the escape from Ethereum? Feb. 3\u201310 <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a><em>Finance Redefined is Cointelegraph&#8217;s DeFi-centric <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>letter, delivered to subscribers every Wednesday.<\/em><\/p>\n<p>It seems that this week, finally, the community has had enough of Ethereum\u2019s gas fees.<\/p>\n<p>That is obviously a bit of hyperbole, as gas fees are high precisely because people are willing to pay such a premium for Ethereum block space. But we\u2019re seeing a kind of \u201c<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>lied trickle-down economics,\u201d where a few brave degens are venturing outside to see what else exists in the world.<\/p>\n<p>The effect has been particularly pronounced on Binance Smart Chain. The number of daily transactions has skyrocketed in the past few days, fueled by new users coming out to play with its DeFi offering.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-02\/fd30a527-f49a-46cf-a1db-45480a067247.png\"><figcaption style=\"text-align: center;\"><em>Daily transactions on BSC, source <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/bscscan.com\/chart\/tx\"><em>Bscscan.com<\/em><\/a><em> (yes, it\u2019s a clone of Etherscan)<\/em><\/figcaption><\/figure>\n<p>What is Binance\u2019s DeFi offering, you ask? Well, it\u2019s a bunch of clones.<\/p>\n<p>One of the more famous projects is PancakeSwap, a clone of SushiSwap of sorts. That means it uses Uniswap\u2019s tech stack and SushiSwap\u2019s \u201cfoodie\u201d interface that always directs you to its yield farms. Another reputable project is Venus, basically Compound and MakerDAO in one. Cream Finance, a member of the Yearn.finance ecosystem, also has a BSC version. After that goes a long list of no-name forks of Uniswap, Compound, Synthetix and a few others.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_makes_a_successful_Ethereum_competitor\"><\/span>What makes a successful Ethereum competitor?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The \u201cEthereum killer\u201d narrative has existed probably ever since there has been an Ethereum to kill. Projects like EOS, Tron, NEO, Cardano attracted a lot of attention in 2017-2018 for their promise of better scalability. With the exception of Cardano, which to this day has not fully launched, all of them offer a more scalable environment for DApps, though that is achieved at the cost of worse decentralization.<\/p>\n<p>Yet, three years later we\u2019re still complaining about Ethereum gas fees. Some may interpret that as a win for decentralization, but frankly I think the reason for Ethereum\u2019s dominance is simple: The bear market happened.<\/p>\n<p>The bear market quickly eroded interest and brought fees down to manageable levels, making all these other platforms completely unnecessary. All people needed was a blockchain to transact with tokens, and Ethereum\u2019s network effect made it excel at that. <\/p>\n<p>Importantly, Ethereum was also very friendly to developers, at least partially due to its network effect. Platforms like EOS were never able to replicate that. That kept all the innovation that was then brewing under the lid firmly on Ethereum, sealing the fate of these first-gen Ethereum killers. They may have some traction, but they\u2019re probably never going to actually kill or \u201cflippen\u201d Ethereum.<\/p>\n<p>So I think today\u2019s traction on BSC is very much a case of bull market froth. When fees go down on Ethereum, Binance Smart Chain and all smart contract platforms that fail to attract truly innovative developers will falter.<\/p>\n<p>Think like a DeFi developer for a second: You have this amazing idea that nobody else implemented, where do you build it? The first natural thought is Ethereum. There\u2019s plenty of funding, a lot of liquidity, and since your idea is new you don\u2019t need to worry about DeFi competitors anyway. The only instance where you might actually prefer another blockchain is if you literally can\u2019t implement it on Ethereum, for example due to limitations of the EVM or because your protocol would use up all the gas by itself. <\/p>\n<p>Without giving users and developers a compelling reason to switch, newfangled Ethereum killers are just as doomed as those of yesteryear. Unfortunately that reason can\u2019t be scalability alone, since you\u2019re betting that Ethereum will fail in both the Ethereum 2.0 roadmap and its rollup development. There is, however, a decent opportunity in \u201cpicking up the scraps\u201d by acting like a layer-two for Ethereum, and it seems that a lot of would-be Ethereum competitors are moving in that direction. <\/p>\n<p>Can any smart contract blockchain actually \u201cflippen\u201d Ethereum at this point? I think it can. It requires creativity and a bit of systemic failure from Ethereum\u2019s side, the two ingredients of any historic case of upstarts dethroning the champion. Think of BlockBuster, Nokia, Poloniex. People thought they\u2019d continue to dominate at the time, but the companies ended up making some massive blunders that cost them their position. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ethereum_community_acts_to_secure_its_lead\"><\/span>Ethereum community acts to secure its lead<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>I can\u2019t help but feel that the pressure to perform is part of what led to this week\u2019s biggest news for Ethereum DeFi, Matic rebranding to Polygon and chasing a self-described \u201cPolkadot on Ethereum\u201d strategy. The project, endorsed by prominent Ethereans, aims to create an interoperability framework for all of Ethereum\u2019s rollups and sidechains. <\/p>\n<p>The plan is good and very much necessary. Without rollup interoperability, DeFi developers would have been forced to go where everybody else is, overloading that particular platform. The news is actually huge for Ethereum\u2019s dominance potential, but the strategy requires good execution.<\/p>\n<p>Still, the rollup-centric path that Ethereum is taking makes me feel that the Ethereum-killer narrative will eventually die out. Winner-takes-all outcomes are extremely rare and there\u2019s no reason to think it will be any different in crypto. Eventually, good interoperability solutions \u2014 where compatibility does not depend on building with the right SDK \u2014 will mature and allow creating a single environment. From a practical perspective there\u2019s no difference between using a rollup or a Polkadot parachain. The entire concept of \u201ckilling Ethereum\u201d would make little sense in a deeply interconnected environment, though I\u2019m sure projects will still compete for the prestige and honor of being a blockchain hub.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"In_other_news\"><\/span>In other news<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>MyEtherWallet integrates a \u201cDApp browser\u201d for easy access to DeFi.<\/li>\n<li>Yearn.finance got hacked on Thursday for $11 million, of which Curve LPs captured $3 million. The loss was repaid on Tuesday.<\/li>\n<li>Curve Finance will have a semi-official version on Polkadot.<\/li>\n<li>Solana announces DeFi hackathon.<\/li>\n<li>A whitehat hacker\u2019s honesty made him more money than a lot of blackhat exploits.<\/li>\n<li>Balancer raises $5 million in additional funding.<\/li>\n<\/ul>\n<\/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 News 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\/finance-redefined-is-this-the-escape-from-ethereum-feb-3-10\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Finance Redefined: Is this the escape from Ethereum? Feb. 3\u201310 &#8221; Finance Redefined is Cointelegraph&#8217;s DeFi-centric newsletter, delivered to subscribers every Wednesday. It seems that this week, finally, the community has had enough of Ethereum\u2019s gas fees. That is obviously a bit of hyperbole, as gas fees are high precisely because people are willing&#8230;<\/p>\n","protected":false},"author":1,"featured_media":175764,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDIvNDY2ZDBjZDgtNGUxMy00ZTczLWExZTQtNzEwZGM0MjkzMTRiLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75014,74868,74891,4965],"class_list":["post-175763","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-binance","tag-defi","tag-ethereum","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/175763","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=175763"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/175763\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/175764"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=175763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=175763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=175763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}