The Web’s Evolution and DeFi’s Growing Pains: Are We Ready?
We are currently living in the age of the technology and in the current time, technological advancements are happening in the rapid phase.
There were times when coomunication used to happen at snail's pace and faster means of the communications were too expensive. With the adavancement of the technology, faster means of communication does not mean it is costly. Web helped us decreasing cost of communication or almost made it free but only challenge comes here that we are getting communication from "intended source" and "intended source" is not compromised.
We have transformed ourselves from web1 to web2 and transition is currently happenning from web2 to web 3.
Web 1 was the first version, that is also known as "static" or "read only web" because it has Static Content and user can only read the information and and csnnot interact with information to generate more information.
In Web 2 version, user can interact and create content in response to the information avialable. Blogging and discussion forum has fuelled the social interaction and social networking platform were really grown huge.
Web2 platforms got huge but they are highly centralized, in some cases they "censored" or "shadowed" the information. They are also strongly "controlling" the narrative by supressing some specific information and promoting other side of story. Also these platforms earn huge revenue/income but they do not share this income with the user who are actually generating this income for them. On top, they treat this user generated content as their own depreiving the user rights.
To overcome all the limitation of web2 , web 3 has emerged with concept of Decentralization,User ownership and Tokenization. All of this got feasible through the technologies like
Blockchain, Smart contracts and crypto currencies.
Interestingly, one of the biggest usecase of web3 are Decentralized apps and in particular DeFi (Decentralized Finance).
At current, in my opinion DeFi is making news for all wrong pupose and question is not that whether world is ready to transition to Defi but, Is Defi ready to handle the financial aspects without issue.
With my recent article on the Cetus protocol hack and minting of Quadrillion token of mobius, definitely raises a question if DeFi is safe.
Worst part on these issue is that they are not caused by user ignorance or lack of user training instead they are caused by the bad code which is the backbone of the Defi mechanics.
Adding to this misery, there is no idea if these user will get any compensation or not. Look like these decentralized platforms had played with user finances by going live with without properly audited and tested code.
In some cases, Decentralization is just used as a buzz word as majority of stake in DAO or validator Nodes is governed by a centralized entity, where thay can put forward their own agenda.
Their Decentralization , or not registered with any government authority helping them to avoid regulations, so unfortunately , guilty are escaping from the clutches of law too.
My 2 cents.
I wish these platforms accept their resposiblity and be more cautious towards it. It will be said to see an emerging technology get quashed by regulators or lose the confidence of the users not because of it's immaturity but due to the immaturity of it's implementor.