Ethereum Faces Urgent Call to Embrace Decentralization Amid CeDeFi Threat

Zhu Su, the founder of Three Arrows Capital, recently highlighted the urgent need for Ethereum to embrace decentralized computing and anti-censorship use cases. In a social media post, Su emphasized that the rise of CeDeFi (Centralized Decentralized Finance) poses a significant threat to Ethereum's ecosystem. CeDeFi refers to the execution of open smart contracts in a closed-source code form on a single server, which contradicts the decentralized nature of Ethereum.

Su argued that Ethereum must focus on application scenarios that genuinely require global distributed computing and censorship resistance. He cited privacy protection as an example of a use case that aligns with the cypherpunk ethos, which is central to the ethos of decentralized technologies. Su's comments underscore the importance of validator decentralization and smart contract demand for the revival of DeFi. In an environment where these factors are low, off-chain solutions may become the mainstream choice due to their cost and efficiency advantages.

Su's remarks come at a critical juncture for Ethereum, as the platform continues to evolve and face new challenges. The shift towards CeDeFi highlights the need for Ethereum to adapt and innovate to maintain its relevance in the rapidly changing landscape of decentralized technologies. By embracing decentralized computing and anti-censorship use cases, Ethereum can ensure its long-term viability and continue to drive the growth of the DeFi ecosystem.

Su's call to action serves as a reminder of the core principles that underpin decentralized technologies. As the industry continues to evolve, it is essential for platforms like Ethereum to stay true to these principles and adapt to new challenges. By doing so, Ethereum can continue to lead the way in the development of decentralized technologies and drive the growth of the DeFi ecosystem.