Another Day Equals More Need For Decentralization

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Sometimes what is taking place around is us the best advocate for what we are promoting.

We know the cryptocurrency world is changing rapidly. A lot of attention is coming our way, and not all of it good. There are many entities that prefer things to remain exactly how the are. Those that benefit the most are going to do all they can to maintain the status quo.

The word is out about the threat that cryptocurrency poses to the established system. This is a major game changer and some who truly benefit from how things are see the threat. Hence, they are working the combination of slowing things down while trying to amass control.

It is something that we, on the other side, can see clearly. We also much counter this move by being agile, rapid in our development, and focused upon what is needed.

One of the industry's most successful entities is finding out what it is like to play in their 'world'.

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Coinbase And The SEC

It appears the SEC is not thrilled with Coinbase's idea of offering a lending platform. The agency is claiming that Coinbase will be offering an unregistered security.

The CEO of the company, Brian Armstrong, is a bit upset at the treatment. It seems that he is willing to play by the rules since he benefits so much. However, he is learning about what the power of government really means.

In a Twitter thread, the exchange’s CEO Brian Amstrong accused the SEC of “sketchy behavior,” and creating “an unfair market,” claiming the regulator refused to give the company any legal justification for considering its Lend product a security.

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He is just realizing now that the government doesn't apply laws equally? This should come as no surprise to anyone who watches things closely.

The situation with Coinbase follows on the heels of actions taken by the SEC against Ripple and many states in the US going after Blockfi.

In short, the regulators want to crush the opportunity for people to make yield from their crypto. At a minimum, if they don't want to stop it, they want to delay things until the big banks can establish their platforms and take over the majority of the market.

That is how they work.

DeFi Needs To Be Truly Decentralized

It seems like the establishment is giving us more reason each week to make this claim. Simply put, they are coming after whatever they can. There is no desire to let this evolve as we regularly discuss. From their perspective, the only thing that is possible is controlled evolution which they oversee. Anything outside of that realm will be attacked.

Coinbase is starting to feel what it is like to be under the thumb of the regulators. When anyone plays their game, they are at their mercy. There is no other conclusion that can be drawn.

Cryptocurrency was born out of the idea of bypassing the existing financial system. This means it was put out of the reach of the regulators. Utilizing peer-to-peer technology*, it could operate without the need for third parties. This removed the point of vulnerability from the equation.

Of course, we saw that put back in as Venture Capital firms funding projects like Coinbase. These entities ended up providing the regulators with exactly what they needed: a door to knock on. The desire to suck up market share is what drove these entities to "sell out" according to many.

Another interpretation is that centralized exchanges are just a phase we are having to deal with. This is part of the "hybrid" system that is forming. The path from centralized-to-decentralized is not a single step. It is evident there is an complete hybrid system being build, for the time being, to facilitate between the two.

Centralized exchanges obviously do this.

Nevertheless, this also shows how we need to make DeFi truly decentralized. Hybrid entities are not different than totally centralized ones. When there is a point of failure, all is in jeopardy.

Decentralizing From The Start

One of the reasons why we should watch the activity regarding the SpkNetwork so closely is that is a protocol designed to build a fully decentralized platform. The team is taking great measures to ensure all of it is done in a manner to reduce, if not eliminate, much of the centralization we presently see.

There was a recent proposal for funding that the team put up. What is most interesting about it is not so much the fact they are requesting it from the community. Instead, it is the reasoning that is vital.

In a podcast, @theycallmedan and @starkerz, discuss some of the points of their proposal. One interesting idea is when Dan started how the project team could have funded it yet the reasoning to turn to the community was to "create a better story". This is something that we need to think about down the road.

We are not only watching the creating of a platform, there is also an example being set. Presently, much of the world believes that turning to centralized entities is the only way to get funding. For the most part, that is true. What is exciting about the SpkNetwork is that it not only seeks to be an example, it is looking to generate a level of funding that can be eventually used for other decentralized projects.

All aspects of an entity need to be looked at. The new model has to be decentralized and distributed. Points of vulnerability exist when a few (or one) control what is taking place. That is where the regulators can step in and take action.

Those who were early into Coinbase made out like bandits when it went public. Of course, those people were not us. It was funded by Venture Capital money that was put together by "accredited investors". The rest of us can be damned.

There is, however, a price to be paid for all that money. Armstrong is starting to understand what he is up against. Cryptocurrency is about freedom yet COinbase went the exact opposite direction.

Here is the lesson for the entire industry. Getting in bed with the establishment will only further feed into the powerful players there.

Decentralization and distribution is the only true answer.

We are getting examples on a weekly basis these days. It is time for us to learn the lesson.


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Bang, I did it again... I just rehived your post!
Week 73 of my contest just started...you can now check the winners of the previous week!
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(Edited)

Seeing people getting absolutely demolished on leverage trading on a daily basis somehow justifies the need for stricter regulation for me but boy have we strayed far from the original idea.

If someone told me that Binance will have its own centralized chain that will be used by millions of people just three years ago I would discard it as a joke. The same goes for any other CEX but look where we ended up today.

The masses don't care about decentralization. They are here to try and make as much money as possible as quickly as possible. In that process, they end up using whatever is affordable to them and BSC should be a big reminder for the whole industry. If user experience doesn't follow the pace of development we will end up in situations where the middle man is making even more money using our own tech.

All aspects of an entity need to be looked at. The new model has to be decentralized and distributed.

This is a point that leaves me with a lot of questions. When we look at the leading blockchains today most of them aren't even decentralized properly. Yes, they have clear plans on how to fix that but the ETH chain rollback was a big event that won't be forgotten. What happens when people start asking questions and find out about pre-mined coins that far too many chains have?

Really looking forward to see how SPK is going to evolve though. Still didn't have the time to dig deeper into it so this will be a good reminder.

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That is the point with many of the leading blockchains. They claim decentralization but truly are something else.

It is vital that all of us on Hive keep pushing the ball forward. Each new token minted in a new person's account is furthering the cause.

We have to remember that.

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but... there is no absolute decentralisation yet right.

We are using Binance Smart Chain DEFI apps when its kind of CEFI...

also SEC attacked Uniswap and Uniswap is cooperating with the SEC...

I am very uncertain on weather there will be attack on so many tokens we hold - 1inch, saying it is security? or that cake crypto.

I am still trying to figure out how we can deal with crypto without traces - maybe buy from hodlhodl, then transfer it a non-custodial wallet and so DEFI.

Defi is not completely evolved you know. For on ramps to crypto I have always used crypto exchanges on which I have done KYC...complete disclosure...they have all the traces these exchanges and will cooperate with the Govt. when threathened.

No solution as yet. My brother and cousins got crypto and hodl it in centralised exchange... its easier for starters.

My fear is the Govt. will take note of crypto hodlers and tax us so we remain you know middle class not the rich class... My Indian Govt. will do it.

I have no idea how to deal with such a situation. Perhapes Chinese crypto Hodlers will detail how they HODL and deal in crypto when Govt has made it difficult for them to get crypto easily from exchanges using their bank accounts.

I love DEFI... I am not sure they are completely decentralised but atleast we can hodl money non-custodially.

Maybe that's why DEXs of Binance are kind of DEFI, you have control over the funds even if the Blockchain is not decentralised.

This is interesting.

You remember that recent mega hack of Poly chain - 600 Million dollars and the hacker returned funds, part of the reason is because he felt he would be caught I think with the traces he leaves selling those coins... and that USTD is centralised, it can be frozen, and USDC is also I am sure centralised.

No such thing as complete decentralisation and very odinary people like me, who don't have the cyber smarts can't do crypto transactions without being identified or traced I feel.

That being said its in my agenda to check out localbitcoins and hodlhodl, I undertand it will be more inconvinient, also may need to buy BTC at premium and sell it lower than market price, but it needs to be checked.

HODLhodl has DEFI in BTC which is completely decentralised I heard.

Then there is Monero and Secret Network.

I generally am a naive Citizen but after seeing all the atrocities these powers Govt. I really don't want them to touch and benifit from my crypto trades.

But coming to practicalities may have to just blend in with what is possible.

These powers have too authorithy and majority of us just obey them, thinking its how things are. That's sad actually, anyway.

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All governments want their tax money. That is what they exist for, to keep pillaging.

They feel they are the entitled class. It is time for some massive blowbacks around the world. We will see if that happens.

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(Edited)

There is a smart back lash...

That wall street bets group has build a blockchain platform to you know track syntetic stocks ...its a beauty. They have integrated with Defi protocol balancer for this...

https://medium.com/balancer-protocol/wallstreetbets-launches-exchange-traded-portfolios-etps-on-balancer-v2-ecf31699db7f

https://www.wsbdapp.com/

There are groups that want to play the game against these big manipulating powers...this is exciting.

And their WSB token will be used to like vote for stocks to include I think...there is staking also here of the token for community to earn rewards and all... its hot. Kind of like a DAO...pretty cool though!!

https://decrypt.co/80448/defi-protocol-balancer-integrates-wallstreetbets-crypto-app

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SEC needs to be dismantled ASAP Our goverment is not what it use to be in the 90's it's rapidly changed into a over stepping law breaking and constitution breaking powerhouse that needs to be corrected sooner than later. Make not mistake about it I love my country but it's priorities of being a good force in the world has drastically changed under NSA (national security) in a VERY negative way.

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We need to dismantle most of the government.

The recent "stimulus" that was done, how much of it actually got into the hands of the citizens? A few hundred billion maybe. Yet they spent trillions?

And then they pit the divide about people getting $1,200 a month unemployment when the banking and financial sector raked in trillions.

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Fully agree with this. Nothing like busting your butt for your government and when you need some help like really need some help they throw pennies at you in return. That should be the biggest slap in the face wake up call for people that your government does not have you in their best interest.

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How can I make yield or get interest income from my portfolio?

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I am hopeful the SPKNetwork gets the much need support and create a story down the line for others to follow.
I always believe the more decentralized we get the better out chances of winning against the current system. Cryptocurrency/Blockchain still has a long way to go and it no doubt learning and evolving by the day.

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It is a slow process but it can be done. The intention needs to be there from the start. The idea of funding the project in s decentralized manner will end up being the example for others to follow.

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Crypto and and decentralized blockchain landscape = freedom for the average person. Which is a problem for those who prefer to limit and regulate (aka control) that freedom.

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The story in time will be our biggest asset. Not only did we break away from centralized control to be a self-sustaining censorship-resistant ecosystem, we now can stand on our own legs and fund development via the community. What we are achieving is the holy grail of web 3 and what everyone else is spending billions on trying to solve. Alas, a problem that money can't solve alone, the first ingredient is community.

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It is true.

That said, community can expand to areas of interest. The idea of people on Hive supporting PPY by setting up witness nodes to make DPOS even stronger is a great one.

We will need to spread word on this when the time is right.

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Presently, much of the world believes that turning to centralized entities is the only way to get funding.

Exactly, well while this is currently the system, I believe that model is changing with decentralization. I've listened to Dan very keenly about how the SPKNETWORK would generate funding and how it could do it with it in a rather unique way. It would definitely get to a time when the SEC wouldn't even have a system in place to track. All that's changing. I'm looking forward to seeing how the SPK model would change a whole lot regarding distribution and true ownership

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The layers of the SpkNetwork are going to be incredible. That is why it is so exciting and everyone is anxious for it to roll out.

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I've been asking when it's going to roll out, the possibility brings great excitement and I can't wait, anticipating before the end of the year.

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Cefi and Defi will co-exist. One day will will rate truely defi systems but currently its a big No!

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Another interpretation is that centralized exchanges are just a phase we are having to deal with.

I subscribe to that.

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The price of Hive is blessing in disguise. Cheap Hive and not having VC in here make us decentralized AF

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Amazing what is going on right now and this is a must have now as decentralization is the only way forward. People are not stupid and in time will come on over to the idea of what has been going on.

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If decentralization and distribution is the is true answer to this establishment, please let's move it forward. God bless you.

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I don't think you understand yet taskmaster. Many of you all still don't get it. Gary Gensler not anything like the past sec charimans. None of you are out of the woods. You all i would determine still unregistered securities everyone of you are hanging on by a thread and you will have to pay the price for that come soon one day. I reckon under this SEC chairman you likely will.

501c3 status sounding pretty good to us right now. You guys don't have a prayer. You gotta pay the piper taskmaster you know your time is short. Why should'nt you have to pay when many others will pay. You guys expectations of profit many times on work you haven't done yourself in expectation of mooning prices clearly puts you in unregistered security territory. However i did warn you all. People have ears but they do not hear. I wish you all good fortune in the wars to come.

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Because this is such an awesome post, here is a BBH Tip for you. . Keep up the fantastic work

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I dream of the day when I wake up to see an announcement that coinbase, Binance and top centralized exchanges are joining their hands together to build a truly decentralized exchange with fiat off/on ramp protocol. Thorchain is close. But it doesn’t offer fiat off ramp....this is what we truly need to achieve self sovereignty in all crypto

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Thank you fro reporting on SPK Network Funding Proposal. It has been one of the easiest proposals to vote for. I'm happy to see @bobinson's name being mentioned. I have had some great interactions with him. He is truly the kind of person you need to have in your blockchain projects.

SPK Network should have asked for 1000 HBD a day. I'm sure there is going to be massive costs for an ambitious project like this.

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