The weaknesses of Ethereum compared to modern blockchains: Interview with Radix
The weaknesses of Ethereum compared to modern blockchains: Interview with Radix
If the numerous Smart Contract hacks, which the attackers earned over $ 3 billion in 2022, have taught something, then it is that the decentralized financing (Defi) is still an immature industry.
In addition to exploits, Defi still faces scaling problems in connection with computing power that is required for complex transactions, and the throughput that is necessary to support the global financial system in the coming years.
As the current king of Defi, it is worth checking the Ethereum network in order to identify the problems and restrictions that lead to the current obstacles in the industry.
at the Consensus 2023 Cryptopotato sat down with Piers Ridyard-CEO from RDX Works-to discuss why Ethereum is not really optimized for Defi. He explained some of the more suitable technologies on which modern blockchains are based, including the newly popular Smart Contract platform Radix.
The chunky programming language from Ethereum
According to Ridyard, Defi is currently lacking in three main areas in the crypto sector: user experience, developer experience and scalability.
The first two problems are largely due to the not exactly ideal programming languages for developers in order to express their ideas for certain financial applications. Such a language, he said, was Ethereum's Solidity.
"strength is as if you were hit against a wall with your head," he said. "If you want to create high -safe assets and high -safe financial applications, it is basically impossible to make you safe in a way that is easy to use for developers."
Ridyards company RDX Works is one of the core developers of Radix-a blockchain focused on Defi, whose native token XRD increase by over 200 % from the beginning to mid-April. In contrast to Ethereum and other chains, Radix uses a unique programming language called SCrypto, which is specifically geared to create and use financial applications more easily. "You do not create your own smart contract, which then defines what it means to be a token what it means to be a token transmission and to pursue the account balance," said Ridyard. "All of this does the main register itself." The Radix engine on the platform also protects against "Reentrancy attacks", a common defy gap that enables a hacker to continuously withdraw from a smart contract until the victim goes bankrupt. In particular, the engine prevents infinite recalls that lead to recursive loops that enable hackers to reduce a contract to zero. In February the defi protocol dforce lost dollar for such a beetle. "A whole series of hacks worth perhaps half a billion dollars that just came from Reentrancy simply disappear because of the way we implemented architecture," said Ridyard. Ethereum " merging " The upgrade in September-which changed its consensus mechanism from Proof of Stake-was widely found as the greatest technical performance In the history of the cryptopical currency.
For example, Ethereum does not allow the parallel execution of transactions that would enable enormous throughput. All transactions must be ordered, even if they are not related. In contrast, Radix uses the "Cerberus" consensus mechanism, which makes an arrangement superfluous. "You can start and end whenever you have to start and end, and you don't have to agree between them, which came first and which came second," said Ridyard. Radix continues to have a delegated proof-of-stake system that protects Cerberus. However, Ridyard sees neither the Proof of Work nor the Proof of Stake as "consensus mechanisms", but rather as "disaster protection mechanisms". "A consensus mechanism is the way the knots come to an agreement. The civil mechanism is about how to protect these nodes from malicious attacks while you get an agreement," he explained. Ridyard said he admired proof-of-stake for his energy efficiency, but found that proof-of-work chains-such as Bitcoin-solve certain "boat trapping" and "randomization" problems. In addition to technological restrictions, defi and the blockchains underlying it are currently under enormous regulatory pressure through the Securities and Exchange Commission (SEC). The agency currently searches for regulating defi exchanges within the framework of the existing securities exchange laws. While Ridyard sees the possibility that the regulatory authorities Defi in America will "kill" for a certain time, he cannot imagine that the industry will die worldwide due to the overwhelming benefit that it can offer certain economies. Ultimately, he believes that it is a little distracted to "read the tea leaves", as the regulatory authorities will interpret certain enforcement rules, and that Defi will ultimately adapt so that it corresponds to the political and economic will of all country as best as possible. "What the regulatory authorities try is to find the handles with which you can implement enforcement against what the government and, on the whole, voters could consider what you want and what you don't want," he said. "There will be a give and take." . XRD / USD. Coingecko
font-Weight: 400; "> is the radix engine that contains part of the ledger itself and the essential building blocks for developers Provide to create apps without having to start the complex development from scratch. The consensus mechanism of Ethereum
Piers Ridyard (right)
defi and the sec