Bitcoin has played a pivotal role in peer to peer electronic cash system. Ethereum with Smart Contract functionality can play a similar role in finance. Disrupting finance and traditionally old systems with uber-fast Decentralized finance (DEFI). Functionaities such a Buying, Borrowing, Lending with no centralised or middle person provides a plethora of unforeseen opportunities for new business , individuals and even the state. Providing a protocol that eliminates Know your customer (KYC) & Anti-money laundering ( AML) the Defi platform possesses its own challenges & regulatory challenges.
Over $21 Billion invested in DEFI since January 2021, the DEFI craze hype is still at its infancy stage. Various protocols from MakerDAO, Compound Finance, & Uniswap needs to be explored to identify its fullest potential and opportunities.
With technological innovations at an unprecedented scale, DEFI could lead to the ideology of separation of money and the state. Bitcoin has its limitation, with lending platforms built on Ethereum and other Blockchain it could overcome some or many challenges posed by Bitcoin
Peer to peer finance provides a form of freedom that can eliminate the issue of Trust and censorship. Technological advancement in the form of cryptography makes it possible to send over $Billions in a matter of seconds practically free and without being censored.
The biggest difference between DEFI and traditional finance obviously is the Central nature of finance. Central authority in different forms is responsible and in control of Traditional Finance. This Authority has its challenges & repercussions.
Regulation and Innovation needs to work hand in hand. The Dubai Blockchain Strategy aims at promoting Blockchain technology. Identifying the regulatory framework and following the necessary protocols defined by law is an absolute must and one must adhere it to the fullest.
Find out how can identify key areas of regulation that effects cryptocurrency, blockchain platforms & DEFI.
Technological innovations are at an extremely rampant pace. Crypto hacks especially in the Defi space is detrimental and makes the entire space detractor for mainstream media, financial institutions & government entities.
Speak to us as we explore the different options and possibilities to meet your financial goals in DEFI
User experience is still one of the challenges faced in the crypto industry. Compromising security with user experience by way of using central authority defeats the whole purpose of DEFI
Find out how we at Blockchain DXB make Defi easy to use and understand.
MakerDao's stable-coin based lending platform is credited with being the first DeFi application to receive significant use. It allows users to borrow DAI, the platform's native token pegged to the US Dollar . Through a set of smart contracts on the Ethereum Blockchain, which govern the loan, repayment, and liquidation processes, Make DAO aims to maintain the stable value of DAI n a decentralized and autonomous manner.