Charles Hoskinson of Cardano (ADA) on CRUX of Why DeFi Will Work For Every Body - ELEVENEWS
Charles Hoskinson: Defi going RealFi has four properties: Identity, Meta Data, Governance, Standards and Certifications. It has the concept of Decentralized Regulation, De-Reg-Tech. Lot of things like...
Charles Hoskinson: Defi going RealFi has four properties: Identity, Meta Data, Governance, Standards and Certifications. It has the concept of Decentralized Regulation, De-Reg-Tech. Lot of things like transaction reversals, freezing, things like actors involved, KYC, anti-money laundering and these types of things. Those who solve this, will control the entire Defi System. RealFi is the next generation oif Defi. This is a crux of why Defi will work for everybody.
DEGEN YIELD FARMERS PONZIONOMICS
However, a bunch of DeGen yield farmers who come in and they are embracing ponzionomics. And, they are always looking for a greater fool. They had no intention of doing real loans or real transactions – it is just looking for some money to make with DeFi at someone else’s expense. A sum zero game, when you win someone loses.
REALFI is Real – What is it? Why is it Important?
It is beyond the fact that you have identity, metadata, governance standards, and this regulatory oversight. The people who are using it, they use it as their primary financial stack. They don’t have a bank account. They don’t have credit cards. That is not their primary concern. It is a secondary concern. They want to use a blockchain based cryptocurrency based financial stack. It is Real Fi.
5% 10% or 15% 20% Fee
Let’s say you are small business and right now when you interface with a TradFi marketplace, every time you want to get a loan, every time you want to get a new inventory for your store, every time you want to get a little bit of capital or store a little bit of capital. There is a 5% 10% or 15% 20% fee.
In some cases, you have no access. They just would not give it to you for whatever reasons. What if you could move all of that to digital assets – to keep them secure, stable, safe, fluid, global, and make the fees go very low.
Getting a Loan from Community
And, instead of getting a loan from the local community where it is 35% you can get it from across the world and everybody puts their penny in and its adds up to 50 cents. That is why you want to use that. Because you have total control over your identity and self-sovereign. You have total control over your reputation, you have total control over your asset storage and all these types of things. That is real Fi at its core.
And, what gets me interested in this industry when we say, we want to be the financial operating system of the developing world, the new world that we are moving towards. That is really the point of it. Because you want to notice that each of these things identity, meta data, governance, standards and certifications not controlled by a single government, single individual or single company.
And, in many cases the assets that are produced there are owned by “you-the user” as opposed to be owned by transnational body, corporations or whatever it may be. That is the difference in a nutshell.
Delegate Your Voting Power to FEED DRep in Cardano Governance.
DRep ID: drep12ukt4ctzmtf6l5rj76cddgf3dvuy0lfz7uky08jfvgr9ugaapz4 | We are driven to register as a DRep by our deep dedication to the Cardano ecosystem and our aspiration to take an active role in its development, ensuring that its progress stays true to the principles of decentralization, security, and community empowerment.DELEGATE VOTING POWER!
