AdaLend CEO explains why they chose Cardano over Ethereum
AdaLend CEO Kaspars Koskins believes that the decentralised finance (DeFi) space will grow even bigger this year.
The CEO of AdaLend has pointed out in a recent interview that the Cardano blockchain aligns with the company’s goals. Hence, the reason why they chose to build their platform on the Cardano blockchain instead of Ethereum. Koskins said;
“We chose to build on the Cardano blockchain as Ethereum is no longer usable by the majority of people on the planet due to the high transaction costs – with gas fees reaching into the hundreds of dollars per transaction. This is unacceptable to ordinary people in the western world today as well as the millions of unbanked people in the developing countries of Africa and Asia lending and borrowing far smaller amounts.”
Koskins lamented that Ethereum is only usable by the wealthy at the moment while new platforms like Solana and Avalanche have issues with centralization, security and reliability. He added that;
“The AdaLend vision aligns perfectly with that of Cardano founder Charles Hoskinson who is passionate about improving financial outcomes for people all over the world, regardless of race, nationality, gender, or financial status.”
The AdaLend CEO added that the DeFi ecosystem would grow bigger over the coming years as more people take their financial future into their hands. He said;
“DeFi systems are by their very definition more robust and antifragile than centralized companies like BlockFi. The AdaLend protocol and network is more akin to Bitcoin or Cardano whereas the network scales it will become more robust to attack.”
Koskins said with decentralised finance platforms, people can earn a good interest rate on their hard-earned savings without worrying about the risks of the government attacking the platform as they did with a centralized crypto lender like BlockFi or the government trying to freeze their bank account if they don’t agree with their opinions.
The DeFi space recorded massive growth last year, both in terms of adoption and the total value locked in smart contract blockchains.