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Some of the most watershed moments in history involved changing what could be done in the palm of someone’s hand. From sparking a fire to Gutenberg’s printing press that brought reading to the masses, to the personal computer and smartphones. The purpose of technology is to facilitate ease of access and help individuals be more innovative, efficient, and productive. Accessibility to the masses facilitates technological change and advancement.
Decentralized finance (DeFi) is here to shatter the functions of traditional finance. Currently, the traditional finance industry is “centralized.” In the United States, the Federal Reserve is the single central authority that controls the entire monetary policy. Traditional finance is antiquated, and we have seen several examples of how it is highly manipulated and full of inefficiencies, fraud, and corruption. The system is also isolated and inaccessible to the masses.
DeFi and the onset of web 3.0 modernize the global financial system for the internet age. By adapting traditional finance to the capabilities of modern technology, we get transformative changes. DeFi open’s the door for all people to access a system impossible in traditional finance. It is a movement that creates a low-cost, fast, efficient, trustworthy, and transparent global financial ecosystem without a central authority. The system is also is highly accessible to anyone with a smartphone or internet.
The term DeFi has become a catch-all name for a growing list of financial products and services. By using cryptography, decentralization, and blockchain, DeFi is able to provide an open, fully decentralized, and transparent financial system. The products and services open an entire ecosystem of versatile utility and, most of all… fun! From names like UniSwap (Uni for Unicorn), PancakeSwap, BeefyFinance, AlpacaFinance, and so on, the potential for memes and fun is endless.
The central technology of DeFi comes through blockchain and cryptocurrency. Blockchain technology is the cornerstone of decentralized finance and makes the decentralization aspect of DeFi possible. Blockchains like Bitcoin or Ethereum are a collection of transaction data strung together in a chain of blocks.
Blockchains are decentralized, transparent, and immutable. The blockchain data is stored across different locations on a myriad of computers worldwide, making the chains decentralized. When it comes to transparency, blockchain data is permanently recorded on a public ledger, like BscScan, and anyone can verify the results. Imagine if the US Federal Reserve had a running ledger of how every tax dollar was allocated? Finally, cryptography and blockchain technology make each transaction fully immutable. The data cannot be changed, forged, or altered, and the chains cannot be unlinked.
Bitcoin (BTC), Ethereum, and Binance Smart Chain (BSC) are currently the big three of DeFi. Bitcoin is the original and started as a new digital asset. Bitcoin’s white paper from Satoshi Nakamoto came in 2009. BTC was the first-ever peer-to-peer digital money and the first financial application built on blockchain technology. However, it was Ethereum which changed the world of DeFi and the entire world of crypto. While Bitcoin is a store of value blockchain, Ethereum is programmable and allows for the creations of new products and services through smart contracts. BSC is somewhat of a newcomer and is a near copy of Ethereum, intended for faster transactions and cheaper fees. While Ethereum is the top dog in the DeFi world, Binance Smart Chain and other chains are growing in size and ability.
Ethereum allows for data and blocks of the chain to contain rules to create contracts. Smart contracts are an essential function that replaces the role of a traditional financial institution in all cryptocurrency transactions. The smart contract is recorded on the blockchain and can be used to verify nearly any digital asset. Cryptocurrencies and their accompanying smart contracts provide services that don't need intermediaries. Smart contracts authorize transactions and carry out contracts within a trusted environment, eliminating the requirement of a central authority like a government, bank, or legal body.
Web 3.0 is the next generation of applications and protocols that bridge users to the decentralized world wide web. Below is a list of common use cases for DeFi applications and protocols.
Common dApps and Protocols on DeFi
With all the great upsides to DeFi, the phenomenon is still just beginning. Due to its early development, it is still vulnerable to several risks and downsides.
First, the industry is still working on mainstream adoption and recognition. At this time, there are still few consumer protections for DeFi users. Some exchanges like Coinbase keep their funds in banks protected by Federal Deposit Insurance Corp. (FDIC), but there are no protections for crypto-assets and no reimbursements if an exchange fails. Moreover, many protocols are prone to hacks and exploits. Codes can be unfinished and leave holes for exploitation. With few protections and platforms prone to hacks, there are clear and present dangers to engaging in DeFi.
Not all blockchains are created with the same degree of centralization. While not all DeFi apps are at the most decentralized, they work on teams gradually relinquishing control over their protocols. In the case of BSC, decentralization is negotiable, and the chain is proving that users may be willing to exchange some centralization for higher speeds and lower fees. Some users have also found strategies like yield farming to be highly skeptical but also prone to extreme volatility.
Ultimately, DeFi users control their fate. Users should never, under any circumstance, share a private key. Many victims of perceived fraud come from a user sharing their private key unknowingly to the wrong person. There is also no way to recover a lost private key. Once it is lost, it is lost. This can be a perceived downside of decentralization.
Traditional finance, which has barely seen updates from the analog computer days, is ripe for improvement. In today's world, central governments and financial institutions act as guarantors of transactions. This gives these institutions immense power over the money that flows through them. In a world where bankers and leaders of capital call the shots, DeFi products open up financial services to anyone with an internet connection. These protocols are also primarily owned and maintained by their users. This runs in stark contrast to a world where billions of people can't even access a bank account.
So far, tens of billions of dollars worth of crypto have flowed through DeFi applications, and it's growing every day. The platforms are permissionless and allow access to anyone with an internet connection. It has properties that can disenthrall citizens of the world. DeFi and the projects it has can become the unsung hero of a better financial future. Today, you might put your savings in an online savings account and earn an interest rate of less than 1% on your money. With DeFi, people lend their savings directly to others on a decentralized exchange, cut out the middleman and retain higher profits than ever imagined in centralized finance.
Blockchain and DeFi are ushering in the birth of a whole new economy. It is creating a path of least resistance to solve the world’s financial troubles. After a pandemic that sped up the technological literacy of the world, we are at the cusp of the potential of blockchains and DeFi. Beyond Bitcoin, we have seen the enormous growth of DeFi blockchains like Ethereum and Binance Smart Chain. DeFi is proving to be the rising tide that capitalist thinkers have championed for decades. The dogmas of traditional finance are inadequate for the future of DeFi.
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The Philadelphia Sixers, of the National Basketball Association (NBA) in the United States, have selected Crypto.com to become their new jersey patch sponsor in an intriguing new partnership.
The deal will see the hugely popular sports team sell Non-Fungible Tokens (NFTs) that fans can purchase. The sponsor will also appear in other arena promotions at the Wells Fargo Center this season. Crypto.com announced the latest exciting deal through their official blog.
“We are thrilled to launch a long-term partnership with such a progressive team at Crypto.com, a company that shares our drive for greatness,” President of Business Operations, Chris Heck, stated. “Crypto.com will be woven into the fabric of our identity, and together, we will change the landscape for how crypto is integrated in sports.”
The move further signals Crypto.com’s determination to establish itself on the world stage. A step into the premier world basketball league marks a significant milestone for crypto to become mainstream.
This deal is the latest in a long line of partnerships that have seen the crypto giant partner with Formula 1, Paris Saint-Germain, and the National Hockey League’s Montreal Canadiens. The 76ers deal is, however, the very first partnership with the NBA, and more partnerships should follow.
Crypto.com’s partnerships with just sports brands have totaled over $400 million and will likely yield a good deal more money through the huge exposure provided.
Users throughout the crypto space will welcome this news as it could herald a further step toward mass adoption, or at the very least, invite an additional significant number of people.
The global sports industry has already been a hot topic in crypto with exciting projects like Sorare and Chiliz announcing partnerships of their own.
As these deals continue to be signed, there will be a further impetus to educate prospective users about blockchain’s incredible possibilities.
Synapse Protocol has added a new network pool to its mainnet. The Arbitrum network is now live on the cross-chain liquidity protocol, permitting users to easily make cross-chain transfers with a single transaction from the network.
With the addition of Arbitrum pools, the protocol now has support for five different networks, including Binance Smart Chain (BSC), Ethereum, Polygon, and Avalanche pools. The introduction was announced on 21st September via Twitter.
According to the tweet, the Arbitrum pool will bridge faster transfer of assets, starting with ETH transfers back to the Ethereum network.
“We’re introducing support for @Arbitrum today to the Synapse Network, starting with ETH transfers. This is the first ETH fast withdraw bridge back to Ethereum. Move ETH to & from Arbitrum within minutes,” tweeted Synapse.
Users can now visit the Synapse pools page to view the five supported chains and enjoy fast cross-chain withdrawals. With over $15,000,000 in total liquidity, Synapse is the most liquid fast withdrawal bridge from Arbitrum.
Liquidity providers stand to earn fees and $SYN incentives when they supply nETH and Arbitrum ETH. Synapse announced the reward system in a Tweet thread.
“$SYN incentives are live for the @Arbitrum nETH <> ETH pool,” Synapse wrote on Twitter.
According to the tweet thread, users need to utilize the nETH <> Arbitrum ETH pool to get $SYN rewards. In addition, the tweet also disclosed how users would get rewards from providing liquidity on the Arbitrum ETH pool.
“nETH is minted by bridging ETH from mainnet to nETH on Arbitrum using Synapse."
Once you have nETH on Arbitrum, pair it with native Arbitrum ETH to provide liquidity.
As the pool balances change, arbitragers will be incentivized via a deposit bonus to rebalance the pool,” the tweet disclosed.
Synapse is a trustless cross-chain bridge and stableswap that allows users to bridge assets across all chains, swap assets, earn yield, and more. The platform supports Ethereum, BSC, Polygon, Avalanche, and Arbitrum networks and ensures that users easily transfer assets across any supported chains.
Where to find Synapse:
Using modern technology like blockchain and cryptography, the financial world is primed for a complete revamp.
Some of the most watershed moments in history involved changing what could be done in the palm of someone’s hand. From sparking a fire to Gutenberg’s printing press that brought reading to the masses, to the personal computer and smartphones. The purpose of technology is to facilitate ease of access and help individuals be more innovative, efficient, and productive. Accessibility to the masses facilitates technological change and advancement.
Decentralized finance (DeFi) is here to shatter the functions of traditional finance. Currently, the traditional finance industry is “centralized.” In the United States, the Federal Reserve is the single central authority that controls the entire monetary policy. Traditional finance is antiquated, and we have seen several examples of how it is highly manipulated and full of inefficiencies, fraud, and corruption. The system is also isolated and inaccessible to the masses.
DeFi and the onset of web 3.0 modernize the global financial system for the internet age. By adapting traditional finance to the capabilities of modern technology, we get transformative changes. DeFi open’s the door for all people to access a system impossible in traditional finance. It is a movement that creates a low-cost, fast, efficient, trustworthy, and transparent global financial ecosystem without a central authority. The system is also is highly accessible to anyone with a smartphone or internet.
The term DeFi has become a catch-all name for a growing list of financial products and services. By using cryptography, decentralization, and blockchain, DeFi is able to provide an open, fully decentralized, and transparent financial system. The products and services open an entire ecosystem of versatile utility and, most of all… fun! From names like UniSwap (Uni for Unicorn), PancakeSwap, BeefyFinance, AlpacaFinance, and so on, the potential for memes and fun is endless.
The central technology of DeFi comes through blockchain and cryptocurrency. Blockchain technology is the cornerstone of decentralized finance and makes the decentralization aspect of DeFi possible. Blockchains like Bitcoin or Ethereum are a collection of transaction data strung together in a chain of blocks.
Blockchains are decentralized, transparent, and immutable. The blockchain data is stored across different locations on a myriad of computers worldwide, making the chains decentralized. When it comes to transparency, blockchain data is permanently recorded on a public ledger, like BscScan, and anyone can verify the results. Imagine if the US Federal Reserve had a running ledger of how every tax dollar was allocated? Finally, cryptography and blockchain technology make each transaction fully immutable. The data cannot be changed, forged, or altered, and the chains cannot be unlinked.
Bitcoin (BTC), Ethereum, and Binance Smart Chain (BSC) are currently the big three of DeFi. Bitcoin is the original and started as a new digital asset. Bitcoin’s white paper from Satoshi Nakamoto came in 2009. BTC was the first-ever peer-to-peer digital money and the first financial application built on blockchain technology. However, it was Ethereum which changed the world of DeFi and the entire world of crypto. While Bitcoin is a store of value blockchain, Ethereum is programmable and allows for the creations of new products and services through smart contracts. BSC is somewhat of a newcomer and is a near copy of Ethereum, intended for faster transactions and cheaper fees. While Ethereum is the top dog in the DeFi world, Binance Smart Chain and other chains are growing in size and ability.
Ethereum allows for data and blocks of the chain to contain rules to create contracts. Smart contracts are an essential function that replaces the role of a traditional financial institution in all cryptocurrency transactions. The smart contract is recorded on the blockchain and can be used to verify nearly any digital asset. Cryptocurrencies and their accompanying smart contracts provide services that don't need intermediaries. Smart contracts authorize transactions and carry out contracts within a trusted environment, eliminating the requirement of a central authority like a government, bank, or legal body.
Web 3.0 is the next generation of applications and protocols that bridge users to the decentralized world wide web. Below is a list of common use cases for DeFi applications and protocols.
Common dApps and Protocols on DeFi
With all the great upsides to DeFi, the phenomenon is still just beginning. Due to its early development, it is still vulnerable to several risks and downsides.
First, the industry is still working on mainstream adoption and recognition. At this time, there are still few consumer protections for DeFi users. Some exchanges like Coinbase keep their funds in banks protected by Federal Deposit Insurance Corp. (FDIC), but there are no protections for crypto-assets and no reimbursements if an exchange fails. Moreover, many protocols are prone to hacks and exploits. Codes can be unfinished and leave holes for exploitation. With few protections and platforms prone to hacks, there are clear and present dangers to engaging in DeFi.
Not all blockchains are created with the same degree of centralization. While not all DeFi apps are at the most decentralized, they work on teams gradually relinquishing control over their protocols. In the case of BSC, decentralization is negotiable, and the chain is proving that users may be willing to exchange some centralization for higher speeds and lower fees. Some users have also found strategies like yield farming to be highly skeptical but also prone to extreme volatility.
Ultimately, DeFi users control their fate. Users should never, under any circumstance, share a private key. Many victims of perceived fraud come from a user sharing their private key unknowingly to the wrong person. There is also no way to recover a lost private key. Once it is lost, it is lost. This can be a perceived downside of decentralization.
Traditional finance, which has barely seen updates from the analog computer days, is ripe for improvement. In today's world, central governments and financial institutions act as guarantors of transactions. This gives these institutions immense power over the money that flows through them. In a world where bankers and leaders of capital call the shots, DeFi products open up financial services to anyone with an internet connection. These protocols are also primarily owned and maintained by their users. This runs in stark contrast to a world where billions of people can't even access a bank account.
So far, tens of billions of dollars worth of crypto have flowed through DeFi applications, and it's growing every day. The platforms are permissionless and allow access to anyone with an internet connection. It has properties that can disenthrall citizens of the world. DeFi and the projects it has can become the unsung hero of a better financial future. Today, you might put your savings in an online savings account and earn an interest rate of less than 1% on your money. With DeFi, people lend their savings directly to others on a decentralized exchange, cut out the middleman and retain higher profits than ever imagined in centralized finance.
Blockchain and DeFi are ushering in the birth of a whole new economy. It is creating a path of least resistance to solve the world’s financial troubles. After a pandemic that sped up the technological literacy of the world, we are at the cusp of the potential of blockchains and DeFi. Beyond Bitcoin, we have seen the enormous growth of DeFi blockchains like Ethereum and Binance Smart Chain. DeFi is proving to be the rising tide that capitalist thinkers have championed for decades. The dogmas of traditional finance are inadequate for the future of DeFi.
