FTX change co-founder and CEO Sam Bankman-Fried believes Ethereum (ETH) is incapable of dealing with decentralized finance’s (DeFi) development.

Speaking to Camila Russo from the Defiant Podcast, Bankman-Fried says that the Ethereum blockchain is limiting DeFi’s growth and the one method round it’s to construct on different networks.

“Sooner or later, it’s simply clear that we weren’t getting round that. Both, we will construct it on Ethereum, or we’re going to construct one thing that we thought was going to be actually thrilling, however not each.”

He said that anytime his staff tried to construct one thing new they had been enthusiastic about, they “instantly exceeded the throughput of Ethereum blockchain by orders of magnitude.”

Bankman-Fried claims to have examined greater than 30 blockchains together with Ethereum, earlier than deciding to construct his DeFi challenge Serum on the Solana blockchain resulting from its velocity and infrastructure.

Bankman-Fried believes that DeFi might someday be utilized by one billion individuals sometime, which implies that blockchains might want to dramatically increase their scaling capacities as a way to assist a ten-figure userbase. Even scaling enhancements in ETH 2, will not present sufficient capability for what SBF has in thoughts:

“Not simply 100 instances sooner than Ethereum, we want like one million instances sooner than Ethereum.”

In the course of the DeFi increase of current months the growing reputation of Ethereum-powered DeFi protocols closely congested the Ethereum community — spiking charges to greater than $15. When absolutely operational Ethereum 2 might scale up by an element of 100 to 1000x.

Solana’s CEO and founder Anatoly Yakovenko, who was additionally on the podcast, echoed Bankman-Fried’s ideas, stating that the present model of Ethereum is so poorly designed, the {hardware} necessities for its 15 transactions per second community isn’t a lot under that wanted by Solana, which is at the moment processing 500 to 600 TPS.

Not everyone seems to be writing Ethereum off, nonetheless. DappRadar communications director Jon Jordan informed Cointelegraph in June that he believes Ethereum 2.0 will profit DeFi significantly. He believes the introduction of sharding chains and Proof of Stake (PoS) consensus mannequin will remedy a few of the most basic problems with DApps, significantly growing transaction velocity and throughput.