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Block.one’s CTO Daniel Larimer Doubts Ethereum (ETH) DeFi Prospects

When it comes to the DeFi segment, Ethereum (ETH) hosts a majority of popular instruments. However, Daniel Larimer explains why ETH’s dominance is on borrowed time.

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Cover image via block.one

Daniel Larimer, Creator of BitShares, Co-Founder of Steem, and CTO of the Block.one firm behind EOS.IO's open-source software, explained why EOS is a much more natural environment for decentralized financial instruments (DeFis) than its rival Ethereum (ETH).

DeFi, A Necessity Behind dPoS

In a recent tweetstorm, Mr. Larimer claimed that it was he who pioneered the sphere of DeFi six years ago, long before the name 'DeFi' was introduced to the cryptocurrencies community. Furthermore, he treats DeFi as a 'necessity' for his most significant inventions.

I created the first #DeFi platform in 2014, and DeFi was the necessity that inspired DPOS, TAPOS, and high performance databases and account structure. #EOS was designed for DEFI.

He has stressed that both the Delegated Proof-of-Stake (DPoS) and Transaction-as-a-Proof-of-Stake consensus methods were inspired by the DeFi requirements. 

He champions the idea that tokens for DeFi purposes should be issued without smart contract deployment on the dApp hosting blockchain. Thus, EOS.IO-based solutions have all the features required for DeFi operations.

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Explaining this take, Mr. Larimer mentioned RAM markets, name auctions, and resource lending exchanges. All these concepts are up and running on EOS, which makes this ecosystem attractive for future decentralized financial tools.

Ethereum (ETH) Roadmap is Way Behind EOS Present Achievements

Finally, Mr. Larimer emphasized the exclusiveness of EOS-based solutions for the DeFi segment. In terms of technological progress, he sees no competitors in the dApp hostings segment:

We created #EOSIO to empower developers to build DeFi that just isn’t possible on other platforms. Nothing on #eth roadmap comes close to enabling apps that #EOS  can support today

Mr. Larimer particularly bashed Ethereum (ETH) despite that it's still the leader in quantity of on-boarded dApps. When asked about the vulnerabilities of EOS block producers centralization, he recalled the times when EOS was ERC-20 token and existed at the top of Ethereum (ETH) blockchain:

And how many mining pools/miners are Chinese and running eth? 3 pools control 51%.  I’ve never been more terrified than the year our contracts ran on #eth. It was pure luck that our choice in multisig wasn’t the one failed.

👉 MUST READ Block.one CTO Daniel Larimer Calls Cardano’s Shelley “Illusion of Decentralization”related article image

As previously covered by CryptoComes, Mr. Larimer also bashed the activation of Cardano's Shelley hard fork. He insists that its decentralization is an illusion and Shelley's design is a copy of the DPoS.

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Vladislav Sopov

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

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