DeFi will be vastly adopted but only after…
A lot has happened in the last couple of days and it's rather great to see the narrative of "not your keys not your crypto" get thrown around more often, it is important people keep that in mind when interacting with these exchanges and projects, at the very least, nobody should hold more than 5-8% of his crypto assets on centralized wallets.
That said, there's so much that needs to be covered before people can fully migrate to decentralized exchanges and DeFi as a sector. This is because at the expense of ownership and control is "security" and given the number of hacks faced by numerous DeFi projects over the years, we need to rebuild for this sector to attract the majority otherwise value will get pushed away.
We saw how much value DeFi has lost due to the roll ins of bridges getting compromised, DeFi was frankly crypto's marketing point to battle inflation and economic crisis because frankly, what's better than holding Fiat in a tumbling economy? Earning yield, that is, but at what expense? Losing +100% to that doesn't seem ideal, so security needs to be improved.
Crypto education as a factor for sustainability
It's been quite some time now since I last talked about actual sustainability, maybe due to having broken that rule myself in a way that affected my investment routine and inevitably the value. However, true sustainability is attained when one picks up the pieces of these types of events, learns from the effects of their actions and approach, only then can a better path be taken to reach the goal.
Part of the building structures of this is "education", knowledge is power they say. Given that the realm operates on a new technology, certain basic topics need to be vastly understood in order for losses to be curbed, risk mitigated and FUD reduced accordingly.
This includes understanding how crypto works at the very basics, understanding keys and how they enhance security and what effects would follow a compromise, understanding liquidity, the risk of not locked liquidity and low liquidity at that.
Understanding how centralization affects the ecosystem at a grand scale, with this basic knowledge and more, we can hope for lesser catastrophic events because people can better distinguish between a scam given the basic red flags and keep off.
As it stands, centralized cryptocurrency exchanges are highly dangerous and it's now an urgency for DeFi to provide a safe haven for the stranded traders and investors. Crypto.com is currently giving a bad vibe at what seems to be an attempt to manipulate the value of their reserves and others.
These exchanges seem to be passing around assets to boost the valuation of their reserves and that's quite the comedy I didn't expect, and it only points to the fact that with decentralized exchanges, we can individually track these liquidities without having to be fooled by companies trying to look bigger than they are.
DeFi would need to develop a few crypto products to compete with centralized exchanges, this includes releasing similar products like futures, savings accounts, margin trading, borrowing and lending, all in a more secured infrastructure. I'd say DeFi has a chance, we just gotta work on security and education then we'd be good.
Thank you and please leave a comment, your thoughts matter to me
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