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Why Ethereum Remains the Backbone of Decentralized Finance
- Ethereum is the backbone of the new global financial system of L2s and L1 apps.
- Ryan Berckmans, a member of the Ethereum Community, claims that Ethereum is unmatched among other blockchain networks in its central infrastructure function in this new digital economy.
- While other chains, like Solana, have shown notable expansion, none are able to replicate Ethereum’s role as the backbone for the decentralized web, Berckmans underlines.
- Based on Ethereum’s long-term strategy of becoming a basic layer for the expanding ecosystem of decentralized finance (DeFi), NFTs, and blockchain applications, this claim is supported.
- Ethereum has become the preferred tool for developers creating L2 solutions in recent years, letting Ethereum handle more transactions effectively while still preserving the security and decentralization.
- Solana cannot compete with Ethereum as a backbone, mostly because of its lack of client diversity.
- Solana’s great bandwidth needs are another important consideration which limits its decentralization.
- Berckmans further contends that Solana’s prior network pauses and great danger of future outages prevent it from being a good backbone.
- zk-Proof Technology lets several transactions be aggregated into a single proof that can subsequently be settled on the Ethereum main chain which secures Ethereum Scalable and Decentralized Future.
- Ethereum’s L2-centric architecture guarantees that it stays the most reliable and scalable solution for decentralized banking, decentralized apps (dApps), and institutional adoption.
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