TechFlow news — On March 13, Zhu Su, co-founder of Three Arrows Capital, posted that the rise of CeDeFi is the biggest bearish factor for Ethereum, as it means a large amount of business logic originally expected to run as open-source smart contracts on a decentralized network is instead being implemented as closed-source code running on a single server.
Zhu Su believes Ethereum should embrace use cases that benefit from global distributed computing and censorship resistance, including cypherpunk-style applications (such as privacy protection) and other untapped low-hanging fruits.
He pointed out that if Ethereum itself underperforms, decentralized finance will struggle to revive, since in a world with centralized validators and low demand for smart contracts, users can opt for off-chain solutions to save time and money.
