What is decentralized finance and why do you need it? The promise of cryptocurrency is to make money and payments available to anyone, no matter where they are.this Decentralized finance (DeFi) or the Open Finance Movement takes this promise a step further.
Decentralized finance aims to make financial services available to anyone in the world who has a smartphone and Internet connection. French poet and novelist Victor Hugo once said: “There is nothing in the world…not all armies…as powerful as ideas that an era has come.” Can this be said to be about cryptocurrency?
It is no longer news that Binance, Coinbase, and many other crypto companies have faced backlash recently. Therefore, they had to succumb to pressure from the regulators. Coinbase plans to release a loan program that will give USDC deposits an annual rate of return of 4%. However, in the rapid transition, it changed its position.this American Exchange It has been announced that the plan will no longer be carried out.
“There is nothing else in the world…not all armies…as powerful as an idea when the time is right.”-Victor Hugo
Since the beginning of the industrial era of finance, the banking system has been dependent on institutions. This is most obvious in developed markets.
Financial institutions, law firms, and regulatory agencies are the basic “layer of trust.” This structure is necessary to prevent systemic risks. To support this system, all aspects of financial services have intermediaries. We have payment service providers, third-party administrators, trade clearing houses, brokers, etc.
The intermediaries in the traditional financial industry are strong. They include investment bankers, stock brokers, etc. They will not surrender without a fight. They know what will happen. They know that cryptocurrency can cause major damage to the financial ecosystem. They will do their best through lobbying, supervision or any possible means. Even if it means spending more time.
Blockchain intelligence services track transactions and associate them with owners. This process is called associative anonymity. Through the use of algorithms, Fetch transactions On the blockchain, analysis organizations can easily track the cryptocurrency addresses of interest. Those who support tracking point to the need to stop cyber attacks and prevent ransomware, money laundering, and stop illegal activities.
Nonetheless, encryption enthusiasts realize that some companies tend to dig unnecessary and often interfere with their personal affairs. This is no different from tracking cookies over the Internet. When it comes to financial information, we need to draw a line.
When you don’t know the normal use (purpose) of a thing, you abuse it. Abuse stems from the abnormal use of words. In other words, when you don’t know why something exists, you abuse it because it is not used or consumed in the way it was designed or created.
If cryptocurrency is to disrupt the status quo, we must agree that the transaction is public, not for criminals. Regulators need to protect people’s privacy. Today, banks protect privacy to a certain extent by making transactions invisible to third parties. The same applies to blockchain.
The reason why transactions on the blockchain are attractive is that the block changes transparency. This is both a blessing and a curse. Without transparency, blockchain may lose its value proposition because transaction tracking brings many benefits, such as voting, transportation, payment, tracking, and order tracking.
In a sense, the names and locations of individuals are not tracked, but their clothes, and the funds held can be tracked, which is anonymous to a certain extent. Blockchain intelligence succeeds by considering other factors to associate addresses with real-world identities. These include links to identification methods and other functions.
From this perspective, the hope of obtaining a perfect system suitable for national and international needs in a secure blockchain seems out of reach.
Bitcoin’s vision is decentralization. Our vision is to send or receive coins without asking anyone’s permission. Bitcoin frees you from arbitrary human decisions that always succumb to corruption.
Bitcoin is the best money in the world: it is the people’s money supported by the people. Bitcoin allows you to regain the power to control money, which has a huge impact on your life. Thanks to Bitcoin, you can live your own way.
Blockchain is an obstacle to ransomware.The most important reason is Blockchain solution It is decentralized, which means there will be no duplication of any information that might be ransomed. Knowledge can be accessed securely from various privileged clients.
In addition, the blockchain is immutable. When information is written to the blockchain, no one, even system administrators, can change it. This also ensures the advantage for audit purposes.
As the data provider, your information has not been changed, and as the receiver, you can ensure that the information has not been changed.
Blockchain utilizes sequential hashing-transaction blocks are linked with the help of hashing to create a specified historical past, evaluating and ensuring the integrity of the chain every 10 minutes.
Together with knowledge encryption, it is almost impossible for anyone to unilaterally change the information on the ledger without being immediately noticed. Therefore, companies dealing with sensitive expertise can ensure the integrity of the data.
Most ransomware attackers require payment in Bitcoin, which is an implementation of blockchain. However, the technical knowledge used by ransomware hackers may also be an antidote to such attacks.
Therefore, even if Bitcoin payments are currently being used by attackers, other blockchain implementations can also help companies fight ransomware attacks. Because of the use of blockchain, there is no single point of failure that can be attacked.