- Litecoin founder slams Ethereum for being too centralized
- Ethereum faced a major hack recently
- LTC founder also criticized the way the breach was handled
Ethereum news today – Today, Litecoin is the news again for notorious reasons. The network’s founder and chief has openly spoken against a competitor, Ethereum, following the catastrophic DeFi breech. Keep in mind that Ethereum’s DeFi smart contract was compromised not too long ago. Following this recent compromise, Charlie Lee of Litecoin has openly attacked the DeFi sector of being overly centralized. He said that the centralization of the system is why it the network was breached. The Litecoin founder also described the DeFi (decentralized finance industry) growing fastest on the Ethereum Blockchain as “decentralization theater”.
Lee: Is DeFi Decentralized if it Can be Shut off?
Recently one app that succumbed to a security breach is called Fulcrum. After the compromise, the developers at Fulcrum froze the affected smart contract. LTC’s Lee has criticized the rapidly expanding decentralized financial app sector for being more centralized. He called the industry a “decentralization theater” when responding.
In the past weekend, one attacker managed to breach the Ethereum-based margin trading app known as Fulcrum. Although the report was not officially disclosed, there are people in the ecosystem who believe that much as $350,000 worth of ETH was stolen by Cybercriminals. As issued in a tweet, the developers from bZx have disabled the bulk of elements that detail how the smart contract was impacted by the heist. The team hasn’t been able to deliver any official report about the issue, but claim the remaining funds on the platform is safe.
DeFi is a Growing Network of Decentralized Financial Apps
Largely based on the Ethereum Blockchain, DeFi stands for the expanding network of decentralized financial apps. Decentralized financial applications offer a broad range of services including services found in the traditional markets. DeFi’s are Built on public Blockchains. Applications like Synthetix or MakerDAO are design to promote better financial inclusion in the space. Litecoin founder, Charlie Lee was reportedly among the dissenting voices over the latest happening in Ethereum. He was openly critical of the way the network handled its recent security breach. He went on to call DeFi names like the worst of both worlds. Lee attacked the perceived lack of decentralization when it comes to DeFi apps.
According to the LTC chief, if a developer can easily terminate an aspect of an app, then it is not a decentralized solution at all. Despite the fact that decentralized financial apps were made to be leaderless models, some developers were trusted with the powerful kill switches within the system. However, during the hack, these so called leaders were powerless.
Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.