Recentralized Finance

The Promise Of Decentralization

Bitcoin was launched in the wake of the Global Financial Crisis. The Genesis Block contains a reference to the near-collapse of the banking system — proof that the blockchain could not have been launched before this date, as well as an ideological statement:

Bitcoin’s Genesis Block contains a reference to the failing financial system.

A Step Back For DeFi

Unfortunately, exchanges and “CeDeFi” platforms like Celsius took the blockchain’s solution to the financial crisis and the fall of MtGox, and wrapped it in an old problem. The implosion of the Terra/UST ecosystem highlighted how dangerous the opacity of TradFi systems could be.

The fall of FTX had a cascading effect on many other crypto institutions.

Back To Blockchain Basics

For the DeFi community, 2022 should be a wake-up call. The DeFi ecosystem has vulnerabilities we need to address (including bridge, MEV, and flash loan attacks). Work is already underway to do just that. Placing Web3 services within a TradFi wrapper and mindset simply substitutes one set of problems for another, at best, and compounds them at worst.



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