Welcome to Crypto Long & Short, our institutional newsletter. This week, we focus on the need to safeguard the individuals building DeFi infrastructure. Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, discusses the growing recognition of DeFi's potential among traditional finance companies and the importance of protecting the technology and infrastructure that underpin it.
She highlights the introduction of the bipartisan 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 problem stems from a flawed assumption that the limitation is throughput, when in fact, the real constraint is how value moves between participants. He advocates for state channels as a solution, allowing for peer-to-peer transactions off-chain, with the base layer serving as the enforcement mechanism.