The coding room is a wonderful, albeit risky, learning environment. Its flips are a serious warning to those who like to test how deep a pond is by jumping into their head. “Take your time, learn the basics and slow down,” the Old Guard constantly warns beginners. Wealth can appear in this room and disappear in an instant.
In 2018, many beginners get a taste of winter coded for the first time. Bitcoin (BTC) never collapses for the first or last time.
Despite the fact that the encryption room has been around for more than 10 years, it is still in its infancy; Technology is advancing so rapidly that every year we are experimenting with new concepts, new ideas, new applications and new ways to reshape the world.
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We also face challenges when attackers find new ways to steal hard-earned money, as well as new unverified ventures that are profitable but highly vulnerable to mistakes, mistakes, and exploits. The decentralized economy falls within the framework of these new experiences; He promised new and exciting ways to finance and invest, often with dire consequences.
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As more and more traditional organizations like Square and PayPal are using cryptocurrency, we have an opportunity to address this issue; It depends on those who know the room, who understand the core values, and want to see it become much more than a secret. This is a call to action.
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How will DeFi compatible form?
Let’s start with the definition of “match.” This not only means that the project follows anti-money laundering regulations, but also that it meets the standards of quality and reliability. This means that DeFi’s projects have to be advanced in terms of safety, quality, user responsiveness and regulatory compliance. Simply put, DeFi projects must ensure sustainability.
Let me be clear: This is not an argument for apportioning blame and responsibility for losses – these are, after all, decentralized projects rather than financial institutions – but billions of dollars have been invested in DeFi projects, and it should be a thing.
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Our goal should be to increase the number of users, that is, to encourage mass adoption, and to attract traditional markets and non-tech investors. We should strive to bring the blockchain and the benefits of DeFi to society. As governments issue negative interest bonds and operate a money press, people need better solutions to preserve their wealth. Moreover, people must be able to grow economically, regardless of which central bank controls a particular currency or sets monetary policy.
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So what action can DeFi projects and the space in general take to become more competitive and attractive to a wider client base? Let’s start with the basics:
White list of addresses. List of items / IP addresses that, upon initial examination, link to a specific system or protocol. In the case of DeFi, we may have one or two trusted anchors that can verify the address and pass the information on to the customer. After user verification, all other projects within the same trust channel – that is, a group of virtual service providers or VASPs who agree to follow the same set of rules and collaborate on a well-defined platform – can give the user access. For products and services without the need to completely redo the KYC process.
The benefit is two-fold: The user only views private documents for one or two devices, reducing the attack surface for potential data breaches, and VASP can reach a larger group of users without increasing compliance costs. Such a system could also allow individuals and businesses excluded from traditional banking, savings and trade systems for geopolitical reasons to invest in interest bearing products, alternative loans, and high-interest accounts. DeFi is an opportunity for residents and business owners to save, earn and transact.
AML and GDPR compliant systems. Institutional capital markets are strictly regulated and monitored by local and international regulatory authorities; The goal is to prevent money laundering and terrorist financing. Through the certification system, projects can verify and comply with current AML regulations and increase institutional capital while protecting users’ privacy without requiring them to make copies of personal information.