Ethereum Turns 5 - Happy Birthday!

Today on 30th July’2020 Ethereum (ETH) coin turns 5 and Vitalik Buterin, Co-Founder Ethereum shared his thoughts about the progress of Ethereum in these five years with an almost hour & half interview to Laura Shin host of ‘Unchained Podcast’ a Youtube channel broadcasted on 28th of this month.

Among many other things Buterin expressed his thoughts were on topics ranging from:

# Addressing high gas fees on the Ethereum Network

# Does Ethereum 2.0 carries a network security risk & price security significance?

# PoS democratization

# The risks of Ethereum users connected to China’s Blockchain Service Network (BSN)

# Making Ethereum Foundation more transparent &

# His vision of Ethereum for the next five years.

One of the important part of the talk was regarding Defi (Decentralized Finance) a famous term nowadays within the Crypto community, Buterin has concerns responding “…a lot of people are underestimating Smart-Contract risk”.

Buterin said DeFi products under the smart contract protocols are inherently risky as the rate of interest given by them are higher than traditional Banks making it unlikely to run for set periods. Further warning DeFi should not be the place for regular people to put their life savings.

                              Vitalik Buterin (Image Source:- Twitter)

Buterin talked about yield farming platforms wherein people are enticed to have the opportunity to be paid in high interest rewards not sustainable for a longer period of time.

“It's a short term thing. And once the enticements disappear, you could easily see the yield rates would drop back down very close to zero percent.”

Thanks for reading!