Felix Feng Claims ETH Gathers Its Strength From Existing Projects Truffle, MetaMask And Infura
Felix Feng Claims ETH Would Not Exist Without Infrastructures Like Truffle, MetaMask, And Infura
Felix Feng, the CEO, and co-founder of SetProtocol recently gave insight into why most crypto projects use Ethereum over other smart contract blockchains. These other blockchains include Tron Foundation and Tezos.
What Feng Had To Say
Feng gave his opinion via a tweet. He said that a common question he received about SetProtocol was whether it would be built on any other chain. In his tweet, he said there were various factors that influenced his decision such as standardized token standard, decentralized exchange infrastructure, oracles, and non-volatile asset.
Feng stated that Ethereum would not have gotten to where it was without infrastructures like Truffle, Infura, and MetaMask. He added that the Ethereum blockchain has an ecosystem of tools, which are needed to make smart contracts and make DApp development possible. He also talked about other projects that mimic the Ethereum Virtual Machine.
He stated that it was possible to copy and paste the smart contract code and deploy bytecode that is generated by truffle. However, things usually get more complex when the existing tools become incompatible, and you need to think of the underlying assumptions.
He added that coming up with tools would usually slow down the development. As an example, he cited MakerDAO and Augur Project. These two took years to launch unlike projects like dYDX Protocol, which took just months. Feng also noted that Augur and MakerDAO contributed a lot to the ecosystem of Ethereum. He also stated that security was an important consideration. Projects like DAO and Parity Tech has already had serious security concerns in the past. In his opinion, those that build on a new chain risked becoming guinea pigs for bugs. Besides that, finding auditors to review the code was a huge challenge.
Feng also spoke about decentralized exchange infrastructure. He said the Set Protocol relied on decentralized exchange infrastructure that was solid. This included infrastructures like Ox Project, Kyber Network, and the Uniswap Exchange. All these enable users to gain entry into a token without the need for a trusted counterparty. He added that besides the APIs being solid, there was also a need for enough liquidity between the trading pairs to be included in the Set strategy.
In terms of the standardized token standard, Feng said that a token standard utilized by the whole community, which made compatibility possible, was a requirement that was under-appreciated. In his opinion, it was important that developers create features without being worried about incompatibility with other systems.
Another factor Feng talked about was non-volatile assets, which involves stablecoins. Feng stated that stablecoins were important for the seamless function of various financial applications. These include lending, payments, non-correlated base assets, and margin trading. In his opinion, without projects such as Dai and MakerDAO, it would not be possible to create certain strategies.
Feng concluded by saying that all the crucial pieces of infrastructure played an important role in helping to make Set and general decentralized asset management possible on ETH. In his opinion, all these pieces need to appear on other chains before they can be taken seriously by the Set project.