What people don't understand about DeFi is that it doesn't identify as "one project"

What people don't understand about DeFi is that it doesn't identify as "one project"

I always like defining things a little more differently than how most tend to, or should I say I simply define things how they all are?

First off, many people address Bitcoin , Ethereum, Hive and the rest as "cryptocurrencies " when in reality they are "crypto assets" not currencies and if you want to be more specific then call them "fungible assets". Why? The word "currency" is not suitable for these crypto assets, the most important thing about them generally is "crypto" of which, if one makes it a norm to only use that is effectively calling out the technology itself which is the "cryptographic algorithm or cryptography".

These misdefinitions are one of the key reasons why crypto assets and blockchain technology isn't gaining the traction it deserves. Now I understand that Rome wasn't built in a day, but still, Rome wasn't fucked up with poor building structures for it to scale, we cannot simply keep having these confusions flying around and expect the common man to show much interest in the ecosystem, this is all brain aches for most.

Some time ago a friend told me he met a guy who was supposedly quite interested in building a bond with him given that they both were into crypto, so as the conversation went on, this guy began talking about how he's much into Web3 and all. So when my friend asked him what Web3 was here's what he said:

"Web3 is a life-changing internet upgrade comprising the use of blockchain technology, smart contract and AI."

Well not bad right? But it simply doesn't say what Web3 really is, so to clear the air, my friend decided to ask, ok, what is the goal of Web3 and here's what he said:

"Basically, the goal of WEB3 is to create a financial system without limitations."

Really? Where is immutability? Where's uncensored? Where are the actual stuffs? And this is someone who others would believe is fully into this thing and could blindly follow but that's what you get when you have a shit ton of projects flying around and calling themselves Web3. You find a team simply launching a liquidity pool on a DEX like pancakeswap and all of the sudden, they are building Web3 like shut the fuck up dude.

What this guy however ended up defining was DeFi in its very simplified form and here is one other thing people have a misconception about.

Here's a fun fact: people don't realize that decentralized finance isn't about liquidity pools or yield farms. Being able to transfer value from one place to another without any intermediary is decentralized finance, so in fact, Bitcoin was the first crypto asset to achieve this!

DeFi isn't about a stupid project on whatever the fuck blockchain, these things that have been crowned DeFi are only but "DeFi-inspired projects or products". These financial products aim to bring similar investments and finance models already existing in the traditional finance system, products like savings accounts with interest payments only that smart contracts power these products, so, the risk of centralization as with traditional investments is removed.

With this, it is obvious that DeFi doesn't identify as a single product just as crypto as a technology goes well beyond bitcoin regardless of how the maximalists want to sing its praises while undermining other projects. The sooner we get these things straight within the system, the better it will be for us in terms of adoption. You simply cannot on-board people to a system you as a participant don't even fully grasp, that's bullshitting.

Thank you and please leave a comment, your thoughts matter to me

Posted Using LeoFinance ^Beta