Technology

You Can’t Do ‘Real DeFi’ Unless It’s Asset Orientated

Decentralized finance has come to be one of the most compelling use cases for blockchain technology over the last couple of years. Its ability to manage financial assets and provide services without the need for centralized banks to authorize transactions and verify customers has created the foundations of a more accessible and inclusive financial ecosystem that benefits everyone. The stunning growth of the DeFi industry, which was valued at more than $77 billion in March 2022, underscores this potential. Even so, compared to the world of traditional finance, DeFi accounts for only a tiny percentage of the world’s financial transactions. What this means is that there is enormous room for growth, but that won’t happen until DeFi is built upon much stronger foundations. One of the great weaknesses of existing DeFi is that it’s built atop of a very shaky and inefficient architecture – namely smart contracts. It is of course smart contracts that make DeFi possible. They’re the underlying code that enable decentralized applications to automate transactions when certain conditions are met, without the need for a middleman. They’re similar in theory to traditional contracts, however, they’re more intelligent because they don’t require enforcement.

Full story : You Can’t Do ‘Real DeFi’ Unless It’s Asset Orientated.

OODA Analyst

OODA Analyst

OODA is comprised of a unique team of international experts capable of providing advanced intelligence and analysis, strategy and planning support, risk and threat management, training, decision support, crisis response, and security services to global corporations and governments.