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No single blockchain can carry all of DeFi right now, MyEtherWallet founder says

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Most of decentralized finance’s potential scaling options come at the cost of decentralization, according to Kosala Hemachandra, founder and CEO of crypto wallet solution MyEtherWallet. 

“From a perspective of fully decentralized blockchains, there’s no blockchain that has a good enough scaling solution to support this many transactions,” Hemachandra told Cointelegraph in an interview. “When you think from that perspective, Ethereum is the best solution out there.”

DeFi has boomed in 2020, with Ethereum arguably being the top choice for most of the action, according to Hemachandra. As a result, scaling issues have surfaced in the form high fees. 

“The reason why we are seeing these extreme gas prices is because everything is happening in Ethereum,” he explained. “If you think, ok it’ll be better if everything moves to a different chain, unfortunately that’s not going to be the case because that chain will also have some type of difficulty in transaction throughput,” he added, referring to scaling issues. “None of the chains out there right now has a fully decentralized scaling solution.”

Hemachandra explained DeFi could transition over to other high transaction-per-second frameworks, such as delegated proof-of-stake, although such solutions come at the cost of full decentralization. 

DeFi scaling has been a hot crypto topic in recent weeks, with layer-two solutions recently coming onto the scene as potential a scaling option.



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Ethereum

Crypto enthusiasts could make $122K per year mining Ethereum with this setup

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Simon Byrne has taken at-home crypto mining to a whole new level as he looks to capitalize on Ethereum’s (ETH) enormous price potential. 

As first reported by Anthony Garreffa, Byrne has set up an ETH mining rig consisting of 78 GeForce RTX 3080 graphics cards. Although the RTX 3080 is marketed toward high-end PC gamers, crypto miners are using these powerful specs to enhance their capabilities.

With each card using roughly 300W of power, Byrne’s setup uses 23.4KW of energy. And that doesn’t even factor in associated costs like AC. All said, his electricity bill is estimated to run up to around $2,166 per month.

The RTX 3080 launched in September at a price of $699, but supply shortages have caused the per-unit cost to swell to $1,199. At the shortage price, that’s a price tag of $93,522 for Byrne’s setup.

Still, these costs could be offset by the operation’s mining capability. One GeForce RTX 3080 graphic card has a hash rate of around 83MH/s using Ethash, which should generate roughly 0.22236870 ETH per month, according to Garreffa. All 78 cards would therefore generate 17.3 ETH per month, which is equivalent to around $12,352 at today’s prices.

Stripping away the electricity costs, that’s roughly $10,200 per month or $122,000 per year. And that’s not factoring in Ethereum’s price potential during the next bull market.

Ether’s price zipped past $700 over the weekend, the first such move since mid-2018. The return of altseason, as some have predicted, could send ETH’s price even higher over the medium term as investors cycle from Bitcoin to other large-cap cryptocurrencies.