[Review] Crypto for People Who Don’t Follow Crypto

Article Summary

Decentralized finance (DeFi) and unbundling

Turbulence ahead

Drawbacks

Yes, a lot of value will be wiped out, & piracy will be rampant

The value of decentralisation

  1. Easier access — it’s much harder to control the ways people can access the data available and the network resources provided. Anyone can just check block explorers for Bitcoin or Ethereum. You can even track the list of validators for Ethereum in order to access the level of decentralisation of the network, in fact you can track it on twitter. Try to figure out where Facebook’s servers are… you can’t.
  2. Robustness — When was the last time the Bitcoin network went down? Don’t remember? That’s because it hasn’t. Properly run blockchain networks are extremely robust. Emphasis on ‘properly’. This is because the extensive literature on blockchain network security suggests that it is really difficult to bring down the network. However it’s definitely possible with attacks such as eclipse attacks, block reorganisation attacks, and of course the 51% attack.
  3. Ownership — When do you truly own something? The idea is that the ability to transact and make decisions must lie solely with you. This means that nobody else should be able to embargo or block your assets. In DeFi, transactions have to be signed by your own keys which only you know. That way true ownership can be achieved rather than having to rely on a central depository

Real-life Examples

SG 2020 Blockchain Landscape map
Blockdata landscape map
Defillama screenshot
  • Lending: 30 Dapps
  • Assets: 29 Dapps
  • DEXes: 25 Dapps
  • Derivatives: 23 Dapps
  • Payments: 6 Dapps

Conclusion

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