Satoshi Natakmoto’s anonymity and strong mining incentive mechanism are important examples of what made Bitcoin (BTC) unique and led to unparalleled success. But to truly democratize money and finance, it’s worth reminding enthusiasts that Bitcoin was a repeat of a series of trial and error dating back to the 1980s.

In 1982 David Chum conducted research that laid the groundwork for the invention of “computer systems built, maintained, and trusted by mutually suspicious groups”. Other cryptographic designers, including Adam Beck, Hal Finney, Nick Szabo, and Vitalik Buterin, to name a few, have had a huge impact in promoting innovative technologies. Thanks to these pioneers, we are now embarking on a journey that will last for a long time, as experts and craftsmen tirelessly search for ways to improve and solve existing problems.

Circulating technologies such as Bitcoin depends equally on developing the infrastructure and hardware that enables them to function. Satoshi’s white paper in 2008 coincided with the invention of the iPhone and the wider adoption of smartphones, enabling mobile app developers to transfer wallets and other tools focused on cryptocurrencies into the hands of millions of people around the world.

Innovate without limits
Ethereum, which is close to Bitcoin, has seen explosive growth in recent years, and is said to be the driving force behind the controversial but undoubtedly turbulent ICO craze in 2017. That year we saw the global cryptocurrency market value soar to over $ 800 billion, which is what Significantly attracted the interest of political and economic leaders around the world with this technology.

Ethereum is now undoubtedly the de facto standard for all non-Bitcoin experiences. Identity management, forecasting markets, supply chain management, and real estate are just a few of the areas that have been the subject of ideas and experiments on the Ethereum platform since its inception. However, the recent major pressure on innovation has come in the realm of decentralized finance.

Open source projects such as Uniswap, Compound, Yearn.finance and Synthetix rose in 2020. According to the data, $ 11 billion was booked in smart contracts that provide liquidity for a range of financial services and tools in the areas of lending, payments, and more. Insurance, derivatives and decentralized exchanges.

Unlike the old banking infrastructure, DeFi is attracting industry members and enthusiasts by allowing someone to make and launch financial products without permission. Overcoming the inertia that characterized global banking for decades will, over time, deprive central players of the monopoly power and influence. Many hope that DeFi will make it possible to build financial services on a more equitable footing, and unleash economic growth for individuals and societies that have not yet been adequately served.

Is everything not centralized?
In the corporate world, the long-term vision of a company is built from the top down, starting with board meetings and moving from management to employees.

In contrast, many of DeFi’s latest projects are being built with the goal of rapidly decentralizing management to the broader community of token holders to form bottom-up structures. It does this by relinquishing control of key components such as treasury management, code changes, and legal entities to eliminate individual attacks from nation states or invaders.

Dealing with growing wealth inequality, political corruption and corporate technology monopoly over innovation buttons such as Silicon Valley are all part of what motivates many in the industry. A culture of radical decentralization has developed within the largest factions of the crypto community. However, it remains controversial whether this extreme approach is the most effective method for solving social problems.

Addressing control or disproportionate influence from central actors is an undeniable priority. However, basically driving with the idea of ​​“decentralizing everything” at all levels in the industry and technology land can lead to inefficiency.

Unlimited sharing
It is DeFi’s rapidly evolving nature that makes the future difficult to predict. Will the network liquidity be institutionalized? Will billions of people around the world connect with select profit groups? What is the future of centralized exchanges with groundbreaking innovations such as Uniswap and Loopring now taking center stage? What is the future of payments when liquidity leaves central systems?

In this new, unlimited world of smart contracts and ‘leveraged money’, innovative new ways to secure networks, ensure high transaction speeds, and create attractive incentives for the buyer will be devised.

Source: CoinTelegraph

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