Anyone following my blog knows how much turmoil the MakerDao underwent in March, and you may even know of the recent 25 million dollar settlement against the MakerDao from a lawsuit launched by Investors who lost millions of dollars worth of Ethereum in the March malfunction of the MakerDao triggered by the Ethereum Blockchain reaching transactional overload during the market crash.
Additionally if you follow my blog you know competitors to Ethereum have been created, which operate on newer, faster blockchains, in terms of transaction speed per second, and these newer blockchains have the capability to run smart contracts and convert assets into nonfungible tokens.
BUT until now, those competitors were relatively unknown and couldn’t siphon of more then a few percentages of Ethereum’s Smart Conteact customers and they also could reduce the dominant position of the MakerDao in DeFi. However I feel change is in the air because there are new blockchains which are both famous, fast and more secure then Ethereum.
Binance
While it’s debatable whether Binance coin is as famous as Ethereum, they have had a better year in terms of return on investment and more importantly Binance has become the largest cryptocurrency exchange in the world by transaction volume , and they are a famous household name. They just launched Binance Smartchain, a separate blockchain from the one their exchange runs on, and it is designed to run smart contracts like Ethereum, designed to create nonfungible tokens like Ethereum does and all It’s blockchain parameters are designed, so that all applications running on Ethereum can be moved over Binance Smart Chain with no code changes!
So famous, fast, runs smart contracts, does tokens and designed so applications from Ethereum can move there with minimal work and expense. It’s sounding like a very strong competitor!
Bitcoin Lightning Network
Second blockchain is Bitcoin Lightning Network.
It’s famous! You don’t get much more famous in Crypto then Bitcoin. It’s fast.., I mean it’s name is Lightning! And the white paper says it’s the fastest blockchain every developed and the first one faster then Visa at one million transactions per second. Yeah that’s really, really fast. And if it turns out to be true, it’s a monumental advantage. Lastly the Lightning network is a sidechain of Bitcoin, but unlike Bitcoin micro transaction fees are possible and thus micro transactions. Plus it can run smart contracts and its specialty is tokens and token markets. Hmmmmmm!!!
So it’s more famous then Ethereum, faster then Ethereum, safer and most likely and cheaper.
As the lawyer says at the end of their presentation about why the judge should rule on behalf of their client: I rest my case. In other words I am done. The evidence would suggest that outside of tribalism and other no economic and no rational self interests, there may be no good reason not to move your DeFi investments to one of these famous, fast and safe blockchains.
Knowledge, wealth and freedom can be yours. Keep learning!