What is DeFi? The potential and the obstacles of DeFi. Binance DeFi products

The potential of DeFi

Main elements of DeFi:

  1. Payments

The obstacles of DeFi at the moment are

  • Hacks and coding errors.
  • Anonymity of DeFi protocol creators.
  • As crypto transactions are irreversible, some errors and mistakes cannot be corrected. Crypto-enthusiasts know this, but some people still prefer more traditional service which includes support.
  • Bubble? Some people say that we are now in the DeFi bubble like we were in ICO bubble in 2017. While there is no doubt in all the useful aspects of DeFi, some projects remind a ponzi-schemes.
  • Transaction fees. As now most of DeFi projects are on the Ethereum blockchain, sometimes transaction fees can be several dollars.

How DeFi will transform traditional finance

Binance: Bridging DeFi and CeFi

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Cryptotexty

Cryptotexty

Cryptocurrency enthusiast, student of forgotten economists