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Ethereum (ETH) Developer On DeFi Next Stage: ‘Get Rid of Centralized Saas’

News
Tue, 06/02/2020 - 10:49
Vladislav Sopov
Lefteris Karapetsas, founder of the Rotki portfolio tracker and an Ethereum contributor has revealed limitations and contradictions in decentralized finances
Ethereum (ETH) Developer On DeFi Next Stage: ‘Get Rid of Centralized Saas’
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On June 1, 2020, the Defiant community that tracks the progress of decentralized finances (DeFi), published a report about the situation on ETH-based decentralized exchanges (DEXs).  Mr. Karapetsas believes that decentralized trading shouldn’t be accompanied with centralized portfolio management.

Mutually exclusive concepts

According to Mr. Karapetsas, combining centralized and decentralized instruments in the trading process makes no sense. Only when the whole system operates without a single point of centralization can it be considered decentralized:

Exchanges is just one part that needs fixing. We also need to get rid of centralized SaaS offering portfolio tracking and accounting. Can't participate in decentralized finance, only to do accounting for it via centralized apps

For him, the broadcasting of data from decentralized to centralized apps required to track the portfolio on DEX is a step backward.

So, only decentralized portfolio management systems should be used when trading on decentralized exchanges. To achieve this goal, Mr. Karapetsas recommends they ‘get rid of centralized SaaS’.

Lefteris Karapetsas worked as a Senior Software Engineer in Brainbot, the team behind the Rayden Layer-two scalability solution for Ethereum (ETH). He founded the Rotki privacy-focused investment portfolio tracker.

Bright long road for DEXs

The report Mr. Karapetsas reacted to addressed the progress of decentralized exchanges. According to its author Lucas Campbell, this sector is still in its nascent stage. Though it has skyrocketed five times over this year, DEXs account for only 0.6% of the cryptocurrency exchange segment.

DEX report by Defiant
Image via Twitter

The obvious champion is the UniSwap exchange, which has seen about $755M in trading volume since the beginning of the year.

Mr. Campbell highlighted that centralized exchanges process 100% more liquidity in a single day than Ethereum (ETH)-based DEXs do in a year.

The calculations of projected annual earnings of DEXs reveal very poor figures. Only four top exchanges – Uniswap, dYdX, Kyber Network and Bancor earn more than $1M monthly. To compare, Bancor, with its $1.21M projected earnings, makes 0.79% of what they managed to raise through the BNT ICO in 2017.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

News
Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
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John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
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Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

Related Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
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Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)