After a while, I studied DeFi, which is said to be hot these days. Great DeFi tutorials have been posted on the Coinbase site, so I'm introducing you to them and adding some of my thoughts on Steemit. The original title was A Beginner's Guide to Decentralized Finance (DeFi)
The biggest advantage of Crypto is that it allows anyone to do financial activities with a smartphone and the internet. This is a stark difference from the current financial system, which is limited by creditworthiness and citizenship. And it was DeFi who took this revolution one step further.
DeFi became possible because blockchains equipped with smart contracts (hereinafter referred to as 'cren') such as Ethereum were activated. Developers can develop various applications in this chain through Scun, and in a decentralized crypto world, this is called Dapp. ( Think: Hive, which we use, is also one of the Dapps representatives.)
DeFi Dapps has a similar function to existing Wall Street banks and financial institutions, but has the following differences.
1. DeFi is operated by the code recorded on the scone, not directly operated by the company or employees.
2. DeFi is transparent, so anyone can verify code via blockchain and view all transaction records.
3. DeFi Dapps are not country based and can be accessed from anywhere in the world.
4. Since DeFI does not require permission from a centralized organization (without permission), unlike the existing financial system, anyone can create and use Dapps.
5. To DeFi, UX is encouraging. If you don't like a particular Dapp, you can use a third party Dapp, or you can create your own.
6. DeFi has excellent connectivity. Like Lego, you can create new Dapps by combining existing Dapps, so the possibilities are endless.
Mind: Here Coinbase introduces some of the most popular DeFi Dapps. There is definitely a lot that you already know, and simple literal translation will not suffice.
1. The role of the central bank: Provide stable liquidity through DAI, MakerDAOstable coins , and anyone can create DAI tokens through collateral.
2. Saving and borrowing: You can borrow other coins after holding the coins based on the blockchain compound as collateral.
3. Decentralized Exchange: You can exchange coins without going through the Uniswap centralized exchange , and you can mine transaction fees while providing liquidity.
4. Market Prediction: Augur A platform that predicts certain events and pays coins with a scone when they occur.
5. Derivative Financial Assets: Synthetix A platform for creating or trading new assets based on existing assets (gold, other currencies, and other cryptos).
6. Mainly Guaranteed Gambling: PoolTogether A gambling platform that bets PoolTogether's DAI , pays all interest to the user who wins the gamble, and returns the DAI wagered by the others.
What are the next steps for DeFi?
Money and finance have existed in our society in several forms since the dawn of civilization. Crypto is just a digitally developed version. So, in the next few years, all the financial services we use today can be fed into the blockchain in the form of a DeFI. The issuance, exchange, lending, and derivatives markets have been placed on the blockchain. So what's the next step?
1. The biggest drawback of the first generation DeFi Dapps was that users had to have too many guarantees. For example, to borrow new coins, you need to use the coins you have as collateral. This is very different from the real world where you can borrow unsecured or unsecured through credit. In other words, in reality there is no need to keep the money itself as collateral to return the money, but in the case of blockchain, due to its decentralized nature, it is difficult to identify users' identities accurately, making it difficult to take advantage of existing credit scores. The second generation of DeFi will evolve as a way to prove creditworthiness in a decentralized way instead of high collateral.
Pemikiran: Saya pikir ada dua cara utama untuk membuktikan kredibilitas individu dalam sistem desentralisasi. Pertama, seperti VOICE EOS, ada cara untuk menghubungkan kelayakan kredit dunia nyata ke blockchain dengan prinsip 1 orang = 1 akun. Namun, karena ini merusak anonimitas, ini mungkin tidak sesuai dengan tujuan blockchain.
Cara kedua adalah membangun kredibilitas Anda sendiri di komunitas melalui aktivitas media sosial seperti Steemit. Dalam kasus Steemit, ada reputasi yang tidak memiliki banyak pengaruh sekarang, dan karena dompet ditautkan ke ID daripada kombinasi huruf acak, memiliki keuntungan bahwa siapa pun dapat dengan mudah mencari catatan aktivitas apa dalam rantai tersebut.
2. DeFi can also shine in the insurance sector. The biggest problem with DeFi is the vulnerability of the scones. Millions of dollars can be stolen from the blockchain if a hacker finds a hole in the code and steals coins held as collateral. To deal with this unexpected situation, many DeFi platforms will actively use decentralized insurance systems such as Nexus Mutual.
Thought: Perhaps, like providing liquidity for swaps, providing liquidity to a decentralized insurance pool could share the premiums paid by users. However, if the insurance works, the premiums should be quite high as you may lose some or all of the principal.
3. UI and UX improvements. The first generation DeFi Dapps had prioritized innovation and functionality, so they often used UI / UX, which didn't make sense to popularize it. If Dapps that can be easily accessed by the general public are activated, DeFi can be used more widely.
4. When we access the Internet via search engines or portal sites, in the near future, crypto wallets can act as portals on top of all digital assets. The day will come when a wallet will allow you to access various crypto information, manage your assets with ease, and understand at a glance.
Mind: In that case, it's a bit of a shame that a Steam wallet with a simple ID and UX isn't used much. This is because in my opinion there is no better place to get information about Crypto.
5. Finally, the DeFi system itself is expected to become more decentralized. In fact, most projects are "concentrated" to the point where the acronym "Decentralization" is overshadowed. Centralized systems have the advantage of being able to respond quickly to rapidly changing crypto situations, but there are many parts that conflict with the core of the blockchain. When the project stabilizes, DeFi Dapps will become increasingly decentralized and will eventually be run by a decentralized organization such as DAO.
We are witnessing the birth of an industry that is growing so rapidly that it is no exaggeration to say that we are currently experiencing a revolution. Crypto is currently bringing more money into the digital world and is testing currency possibilities in many ways. Although DeFi is still at the level of imitating the existing financial system, we are very confident that in the near future it will overcome the existing system and bring about new innovations that are currently unimaginable.