Welcome to Crypto Long & Short, your institutional newsletter. This week, we explore two crucial topics: protecting the architects of DeFi infrastructure and the flaws in Ethereum's L2 strategy.
Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, emphasizes the need to shield the people building DeFi, highlighting the introduction of the Promoting Innovation in Blockchain Development Act, which aims to protect software developers from misclassification under criminal code. Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, argues that Ethereum's scaling issue stems from a fundamental design flaw, where the focus on throughput overlooks the true constraint: the movement of value between participants.
Sirkia advocates for state channels as a solution, enabling peer-to-peer transactions off-chain and minimizing the need for intermediaries. As the crypto landscape continues to evolve, it's essential to address these challenges and work towards a more robust and secure DeFi ecosystem.