Interviews with Mark Cuban and with active DeFi projects that chose alternatives to the Ethereum network.
Bitcoin’s 2020-2021 bull run has been like the cinematic run of Marvel Comics Universe superhero movies — never-ending action, just a few low points, and ultimately a lot of money made.
But if Bitcoin is the headliner in this film, Ethereum has had all the interesting character moments.
Investor and entrepreneur Mark Cuban is quickly becoming a major advocate for Ethereum. He recently gave us some comments concerning the network by email.
How big is Eth going to be in 2021?
“I can’t give you predictions with a calendar. Everything is always a continuous work in progress with breakthroughs and roadblocks.”
What use cases do you see driving the mainstreaming of DeFi?
“Obviously, the yields are the attraction. But what is missing for the mainstream is trust. There is an increasing number of rug pulls that will hurt new participants. That’s a problem.”
“So there has to be trust built up first. It’s analogous to when Rocket Mortgage got into the business. Historically, you got your mortgage from a bank. But over a period of years, they built up trust for alternatives.
Remember how people were afraid to use their credit cards to buy on the Internet? They didn’t trust Amazon, eBay, or anyone. Time and integrity build trust. That’s what it will take.”
Is it possible Eth will outshine BTC in 2021 considering the meteoric performance of BTC?
“Those two things aren’t related. BTC has claimed its role as a store of value with some global monetary transactions. Ethereum is the platform for smart contracts.
As long as Eth can execute on its feature and performance enhancements, then it will continue to expand the applications built for it. That expansion, when used on 2.0 with 1559, means that in one manner or another eth will be used to fund the foundation for the future of business-changing blockchain applications.”
These responses are from April 2nd — on April 7th Mark told Forbes that “Ethereum will Dwarf Bitcoin” in value.
Bitcoin may be the crypto hero of 2021 — but Ethereum is relatable. It’s having a good year, but it’s not as big as iconic Bitcoin, and it brings the DeFi use cases that meet users’ needs — from global access to financial services, gaming, and NFTs.
But is Ethereum really synonymous with DeFi? Are there non-Ethereum DeFi projects that deserve examination? We spoke to several DeFi projects with active users built on alternative networks to learn why they chose their platforms and the tradeoffs over the dominant network.
DeFi on Alternative Networks
TAU Protocol, a staking project for Bitcoin hashrate tokens, offers an alternative way to invest in bitcoin mining and is built on the Binance Smart Chain, based on lower transaction costs relative to Ethereum. DeFi use cases are currently largely centered around being able to use synthetic bitcoin as a regular bitcoin for collateral.
“The TAU Protocol itself is neutral and able to be implemented on a variety of platforms. The reason why BTCST chose Binance Smart Chain is because of the lower transaction costs. If BTCST had tried doing the same thing on Ethereum, it would have been upwards of 30 times more expensive and operated a little bit slower. User experience was key in choosing Binance Smart Chain,” Tim Swanson, Creator of TAU Protocol, said.
The Stacks Foundation is enabling DeFi products on Bitcoin. Mitchell Cuevas, Head of Growth at the Stacks Foundation, is adamant that DeFi is not limited to Ethereum.
“When people think of smart contracts or DeFi, they think of Ethereum, but few people know that Bitcoin offers the same functionality. There are certainly some places where the ecosystem of tools for developers is less built-out than Ethereum’s, but that is changing rapidly, and we think that given the relative advantages Bitcoin offers in terms…