Zhu Su: CeDeFi is the biggest bearish factor for Ethereum, as it turns a large amount of open-source code into closed-source code running on a single server

ChainCatcher news, Zhu Su, co-founder of Three Arrows Capital, stated that the rise of CeDeFi is the biggest negative for Ethereum, as it means that a large amount of business logic that was originally expected to run on distributed networks as open-source smart contracts has actually turned into closed-source code running on a single server.

Zhu Su believes that Ethereum needs to embrace use cases that benefit from global distributed computing and anti-censorship characteristics, including some cypherpunk-style applications (such as privacy protection) and yet-to-be-developed low-hanging fruits.

He pointed out that if Ethereum itself does not perform well, decentralized finance will find it difficult to rise again, because in a world where validator decentralization and demand for smart contracts are low, people can choose to operate off-chain to save time and money.