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Author: ChainLink community liaison Zach Rynes, Coindesk; compile: white water, Bit chain view
Ethereum co -founder Vitalik Buterin recently created a post on cryptocurrency Twitter. He wrote,DEFI “It feels like a tail snake [a snake is biting its own tail]: The value of cryptocurrency is that you can use them to earn benefits, and these benefits are paid by people who traded cryptocurrencies.”
He went on to point out,“Although DEFI may be great, it is fundamentally limited, and it cannot be the factor that allows cryptocurrencies to usher in 10-100 times again.”
Vitalik is right.
The spirit of decentralized finance (DEFI) is to believe that the financial system based on blockchain will make the society get rid of rent -seeking agencies and enable people who have no bank accounts in the world to enjoy financial services.
However, we can easily ignore it,Many things that are considered to be “DEFI” are actually just a cyclic casino. It promotes speculation on tokens, and the value of tokens mainly comes from the currency of tokens.
The demand for circulating tokens is limited, and retail capital is not infinite.
The current DEFI is not a catalyst that expands cryptocurrencies to the current level, but this does not mean that the token casino on the creation chain is futile.
Defi has proven that it can create a chain financial system that provides all core primitives required for open, global access and powerful financial systems: payment, dropping, lending, derivatives, insurance, etc.
The infrastructure and protocols that Defi relies on has indeed reduced the risk and cost of trading opponents, while increasing transparency and accessibility -even the initial product market fit is just token gambling.
So how do Defi overcome their cyclical obsession with tokens and play their due role in expanding cryptocurrencies?
Tokens
From the most basic level, blockchain is the best way to issue, transfer and track assets by creating digital tokens.Finance is carried out around asset management, which makes DEFI the most practical and obvious growth opportunity for cryptocurrencies.
However, to develop, the DEFI economy needs more assets that can be expressed as tokens.Although cryptocurrencies have pushed DEFI to today’s level, the development of surpassing the casino stage means finding most of the world’s capital.The answer is obvious.
All assets in the traditional financial system (bank deposits, commercial bills, national bonds, common funds, currency market funds, stocks, futures, options, swaps, etc.) will bring a chain worth millions of US dollarscapital.
A company managed by a company managed by Bellaide ($ 10.5 trillion) was almost five times the market value of the entire crypto market ($ 2.2 trillion).
These capitals can be seamlessly inserted into the existing chain financial agreement, which actually exchanges the tokens gambling with the financing of the real world.This is by no means a white day dream. Many of the largest financial institutions in the world are actively preparing for the future of the status quo.
In less than half a year, Blaide’s asset management scale of BUIDL on the Ethereum has exceeded $ 500 million, which has made the total value of tokens on the public blockchain of tokens exceeding $ 1.5 billion.Although this number is only a small part of the value contained in traditional systems, the active participation of the world’s largest asset management company in the public blockchain ecosystem explains everything.
also,Stable coins have proven to be overwhelmed by the demand for tokens.As more than 150 billion US dollars of dollars have been gymized on the chain, the monthly transfer volume has reached 1.4 trillion US dollars. The use of stablecoins is now comparable to the old payment networks such as VISA.Although Circle’s USDC and Berlaide’s Buidl is usually not considered to be the assets of the tokens, the only difference between the two is who is benefited.
Stable currency highlights the core value of the tokenization, because they allow anyone to transfer the US dollar to anyone in the world only through the Internet.The transaction was completed in less than a second, and the cost was less than a penny.For those who are in a currency over -issuing country, trying to conduct cross -border remittances, or just want to conduct financial transactions on weekends or holidays, the benefits of stablecoin are obvious.
Although Defi’s tokens will never completely disappear, it is obvious that the underlying infrastructure currently supporting DEFI will determine the operation of the world economy.The road to advance stems from a simple fact:Vibration assets are superior ways to represent financial assets.
