DeFi Problems and Centralization ConcernsThe situation is a sad one, but one that is not uncommon in the DeFi world. The Ethereum-dominated sector has been running into problems repeatedly. Funds locked in DeFi have dropped substantially; on March 20, BeInCrypto reported that assets locked in DeFi suffered their own ‘halving.’ However, many have also pointed out the absurdity that DeFi apps can ‘pause’ their operations. A decentralized app should not be able to pause, no matter what the situation is, some would argue.
Samson Mow (@Excellion) decided to take the opportunity to burn Ethereum and the entire DeFi community. He writes that he only seems to learn about DeFi projects when they mess up.
Decentralized finance. Decentralized. We paused it. We paused decentralized finance. 🤥 pic.twitter.com/7ATrBWstR6— grubles (@notgrubles) April 19, 2020
The Future of DeFiFor now, DeFi has not proved itself — but that doesn’t mean it won’t someday. Oftentimes, however, the failures in the DeFi space are often also blamed on Ethereum. It should be noted though that there have been efforts to bring DeFi to Bitcoin as well. According to DeFi evangelists, the sector is like the internet was in 1997. Still, others see storing funds in DeFi apps as far too much of a liability. The latest hack is yet another example that, if done incorrectly, DeFi smart contracts can be viewed as 24/7 multi-million dollar hacker honeypots. Whether or not DeFi will win out, in the end, remains to be seen. However, if successful, it would certainly be an enticing prospect for those in mainstream financial markets. Convincing them it is secure as of now, though, is an incredibly hard sell. DeFi still has some growing up to do.
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