In the latest blockchain and Booze issue, Adam Levy of Draper Gorem Holm met with three leaders in the blockchain industry to discuss solutions for the two groups on the Ethereum network. Join Levi Stanny Kolekhov from Aave, Jack O’Holleran from Skale and Antonio Giuliano from dYdX. What began as a discussion of the supreme committees quickly turned into a broader commentary on the potential strength of decentralized finance.

Ethereum Mystery
For those not familiar with the Ethereum situation, sending chain hops becomes prohibitively expensive. At the time of publication, the average cost of sending an Ethereum transaction is just under 20. Complex smart contracts, such as those used in decentralized financial protocols, can easily exceed $ 100 as the network becomes more congested. Layer 2 solutions are protocols that can reduce the burden and provide much faster and cheaper transactions.

As Aavs Kulekhov explains, the destructive potential of Level II solutions is enormous. Not only is it incredibly promising, but it’s also a new technology that has yet to be fully implemented:

Many of these collaborative developments on Ethereum have yet to be released. We’re still on the road to success very early on, but the sheer number of people playing in the first team is a challenge. ”
All three guests are proponents of a two-team solution due to the benefits that decentralized systems can offer. But how do these protocols actually work? O’Holleran has an elegant example: he compares the Ethereum showdown to poker, and the two teams’ decisions with an overview of the wins and losses.

Explanation of the second layer
Imagine a group of friends come to play poker. After a full night of play, players do not lose their winnings; Instead, they write it down in the ledger on the table. Participants can play a variety of games, record winnings and losses, and only “pay” – or use the leveling order – when they don’t want to play. Likewise, multi-layered solutions such as Polygon allow Ether (ETH) and ERC-20 users to use a layer across the network in order to “push” the tokens on Ethereum.

By expanding its reach, interconnection also opens up the DeFi space for those who cannot or are unwilling to spend high fees on a single transaction. According to O’Holleran, the focus is on economic integration in a developmental society that fosters low-cost decision-making. The more people who can participate in DeFi, the stronger the DeFi network becomes.

Beyond DeFi
Toward the end of the conversation, Levy asked the group about DeFi’s “ultimate goal”, or what happens after DeFi “resolves”. After the break, O’Holleran talks about the capabilities Defi systems can offer the world as a whole:

“The power of these systems goes beyond DeFi. Markets, social media and games: All of these things can be disrupted by decentralization. Finally, we want to democratize finance.”
Giuliano reflects this sentiment and adds:

“The goal is too big. The financial system is the most acceptable and trustworthy system in the world. We can build something parallel in DeFi – not much at first, but ultimately using DeFi could be more profitable given the higher interest rates.”
To insiders, the DeFi room might seem mature and big, with a combined value of over $ 100 billion. But for the financial world this is a very small and almost bizarre estimate. Giuliano said that while the mainstream economy is currently interested in DeFi, there is still a lot of work behind the scenes. O’Holleran reflects this view and predicts the future intersection of centralized and decentralized finance:

“The smart CeFi will start to figure out how to integrate into DeFi, and as a result, the DeFi space will become a better space.”
Second-team solutions may not be as glowing as the latest non-instinctive token or Bitcoin blocking the new ongoing business path, but if our team of experts thinks they can be just as important.

Source: CoinTelegraph

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