Atomic Finance Abandons Ethereum Network, Some Predict Developers Will Continue Switching To Bitcoin
Crypto financial services platform Atomic Finance is shifting away from the Ethereum blockchain to focus on Bitcoin citing both integrity and security concerns, the company announced in a recent post.
The post heavily criticised the Ethereum blockchain — calling out high gas fees, the DeFi movement and the chain’s native language Solidity.
The company lamented that much of today’s crypto financial infrastructure relies on crypto IOUs while centralized exchanges or crypto banks custody assets while promising none of the original assurances of Bitcoin.
Turning their attention to DeFi, authors argued that in order to compete in the space they would likely need to launch a token and highlighted that the current DeFi model of creating a token to incentivize liquidity without thinking more critically about a project’s fundamentals is not a sustainable model.
“Continuing to build in the ETH DeFi space would’ve likely forced us to launch our own token in order to compete — and there’s nothing that screams unsound money and unsound financial infrastructure than the rampant printing of money,” authors wrote.
Of course no critique of Ethereum can go without mentioning high gas fees, which Atomic Finance authors blamed for pricing out retail investors while emphasizing the company’s commitment to serving a customer base beyond crypto whales.
Atomic Finance attempted to bust the myth that Bitcoin is lacking in developer activity listing out projects including Bitcoin escrow contracts, discrete log contracts or Lightning Network. Authors even went so far as to dub Bitcoin-native Lightning financial tools “LiFi.”
The Bitcoin side of Crypto Twitter took the announcement in stride with several commenters sharing predictions that more Ethereum projects will begin shifting to Bitcoin in order to survive. While active decentralized applications on Ethereum over the past month have been on the rise, volume on the blockchain has plummeted, data from DAppReview shows. This demonstrates that the Ethereum network can’t keep up with demand for decentralized financial products.
Moving forward, the company’s goal will be to build non-custodial financial products on Bitcoin with their first project being Atomic Odds. The project is built using discrete log contracts to allow users to bet on any outcome and settle using Bitcoin.
By Emily Mason