Cefi vs defi future of finances there is a question

nicecrypto

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Quote from: OpenCryptoSystem on February 09, 2021, 02:50:28 PM

No doubt about it
Defi is going to replace the Cefi.

Is that the case of future if we see it going om ?

Not in this lifetime. I am for Defi but as we know the Government will never allow that to happen even though some aspect of the industry might be venturing into it but total replacement is overstretching. The Government needs their form of control over the economy and this will be totally lost if the central finance is replacing with decentralized finance. Even in your own house, someone makes the rules.

amishmanish

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Quote from: OpenCryptoSystem on February 09, 2021, 02:50:28 PM

So in the future anyone can be their own banker lending money to others on crypto collateral.
Now if everybody start making money in this way then who will do the real work ?

You first need to have substantial money to be able to earn from the lending interest. The platforms are still evolving and even though there is lot of progress, the DeFi economy is still kindda circular.

Quote from: OpenCryptoSystem on February 09, 2021, 02:50:28 PM

Or it will be so difficult to learn how to use defi platforms that those who dont learn it will just do the manual real physical labour for thosr wgo knows how the defi works and how to use it.

You are taking this a bit further than it can go. People who know about DeFi will be able to have an alternate method of earning higher yields or of risking it for better returns. Its not like they wouldn't have to do any manual work or other work to stay relevant and survive.

Quote from: Samayuki on February 14, 2021, 03:35:08 AM

Yea that's what I always thought too until 99% of DeFi projects start losing investors funds to hackers, so the question now is how many CEFI projects have you seen get hacked compared to DeFi projects? Since 2020 it's always about one DeFi project getting hacked, funds arent safe with DeFi, it's far from perfection

DeFi loses money to hackers, CeFi loses it to corrupt politicians, businessmen and nothing ever comes out of it. Billions of dollars are laundered from the worst part of the worlds with populations there being leeched upon by oligarchs, all facilitated by CeFi.
When DeFi loses money, we eventually know what caused it and what steps to take to not let it happen. It can be very nerve-wracking and discouraging to lose funds on these platforms but these are shared pains and this smart-contract risk will always be there. That is why, one should only ever invest on the basis of risk appetite and try to secure your principal investment as soon as possible.

zanezane

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They won't go down without a fight and they are deeply involved in political and economical affairs, the weakness of decentralization is that with no one leading the institution means that everyone can get in and put their own rules and attacks will be easy because no authorities are protecting them unlike centralization which has backers in enforcement so any cent that is stolen will be taken back and the perp get caught. If we are to destroy centralization, we have to be ready because chaos in the financial world will follow and it will take time for a reorganization, centralized finances knows this paradox that if they are to go down then everything will go down too.

Samayuki

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Quote from: OpenCryptoSystem on February 09, 2021, 02:50:28 PM

No doubt about it
Defi is going to replace the Cefi.
So in the future anyone can be their own banker lending money to others on crypto collateral.
Now if everybody start making money in this way then who will do the real work ? Or it will be so difficult to learn how to use defi platforms that those who dont learn it will just do the manual real physical labour for thosr wgo knows how the defi works and how to use it.

In the future of world the world in this case might not ruled by army and power but by the people who have educated enough and intelligenty of knowledge of the defi ?

Is that the case of future if we see it going om ?

Yea that's what I always thought too until 99% of DeFi projects start losing investors funds to hackers, so the question now is how many CEFI projects have you seen get hacked compared to DeFi projects? Since 2020 it's always about one DeFi project getting hacked, funds arent safe with DeFi, it's far from perfection

Tytanowy Janusz

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Quote from: OpenCryptoSystem on February 09, 2021, 02:50:28 PM

No doubt about it
Defi is going to replace the Cefi.

No it's not. They will co-exist in future. They both have different characteristics and are suitable for different things. For example, there is no way for DEX to proceed all load from FOREX.

Quote from: OpenCryptoSystem on February 09, 2021, 02:50:28 PM

Now if everybody start making money in this way then who will do the real work ? Or it will be so difficult to learn how to use defi platforms that those who dont learn it will just do the manual real physical labour for thosr wgo knows how the defi works and how to use it.

1- if everybody will start to earn on borrowin money than average return from this will drop significant.
2- its not difficult now and for sure wont be more difficult in the future.
3- To earn on market / economic mechanisms you have to have money.

blockman

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There are flash loans already being offered by defi projects. But that doesn't mean that it will replace the cefi. People are more confident using cefi because they are licensed and more convenient to use unlike the defi.
The user experience has to upgrade or for more advanced users, it's easy to use defi unlike the cefi. But for traders and investors confidence, it is the cefi as most choice.

just_Alice

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I agree with you. Eventually, DeFi will take over CeFi, as it has much more privileges: totally automated, therefore the probability of something going wrong is much lower, you have complete access to your wallet, everything is in your hands and it's more transparent, your funds are less vulnerable to different attacks, no need for KYC and sharing your personal information..I see no reason why this shouldn't happen.

And regarding this

Quote from: OpenCryptoSystem on February 09, 2021, 02:50:28 PM

Or it will be so difficult to learn how to use defi platforms that those who dont learn it will just do the manual real physical labour for thosr wgo knows how the defi works and how to use it.

I think even though it will be easier to make money - everyone won't suddenly quit their jobs and go for it, so the work assignment will basically stay as it is now, only the ones who are interested in trading and finances will switch to this platform. And regarding pure physical work (where not much thinking is required), in my opinion, it will be all automated within the next 5 years, we can already see that starting to happen.

SquallLeonhart

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CeFi is still the traditional markets and it can't be replaced that much. However the CeFi world in the crypto world is going to change and changing right now, since the biggest problem and risk in the crypto world was exchanges and how they get "hacked" very easily and everyone kept losing their money over and over again, hundreds of hacked exchanges with nearly billions of dollars lost, eventually it was obvious that DEX will replace CEX for sure. Hell it is so obvious that Binance is the biggest crypto exchange in the entire world and they are literally helping people (paying millions of dollars) to build DEX on their platform as well. That should show you how serious this DEX world is getting.

So, I think on regular life like stock markets and all, we are not going towards DeFi world but in the crypto world we are moving towards DeFi for sure.

lixer

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Quote from: OpenCryptoSystem on February 09, 2021, 02:50:28 PM

In the future of world the world in this case might not ruled by army and power but by the people who have educated enough and intelligenty of knowledge of the defi ?

Is that the case of future if we see it going om ?

No matter how much you try to push in Defi, you will never escape Cefi, there will always be a need for Cefi. The thing is that since Defi is a new thing and not much people knows about it now, in the future there will be lots of people who will get to know about it and then they will start using this method and of course it’s likely to result to some bit of loss or decrease for Cefi, but wouldn’t be something that bad or serious. Government might as well try to tackle some of them Defi’s, to see if they can come in and regulate and when they do, these ones wouldn’t be Defi any longer.

emmybd

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Although there has been growing interest in decentralized finance and we want to be our own bank, but that's not going to happen. As the government is not going to allow things to go out of its control. It will always try to control financial matters, as it has to collect taxes to run the country. So, centralized finances such as banks and other financial institutions will be there. As these institutions supported by the government, so people will have confidence in dealing with them.

jackg

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You're not going to phase out banking and central banks imo they're still going to be the best at roviding an inflationary currency with enough taxes to keep an economy stable.

But yes some aspects of where a bank and where retail will lend to will likely be some form of defi like we have now and the exchange issue with gamestop and a few other things look to have raised to light how much international trade previously depended on a few companies (quite a few uk brokerages have - in the past two weeks - already started facilitating more trades via over-the-counter platforms which banks and individuals could also take part in).

Loans are mainly just an asset similar to a bond. A bank and other institutions could still sell those loans or package them and sell them on and they'll probably just be able to do that with defi still as they could with cefi.

OpenCryptoSystem

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No doubt about it
Defi is going to replace the Cefi.
So in the future anyone can be their own banker lending money to others on crypto collateral.
Now if everybody start making money in this way then who will do the real work ? Or it will be so difficult to learn how to use defi platforms that those who dont learn it will just do the manual real physical labour for thosr wgo knows how the defi works and how to use it.

In the future of world the world in this case might not ruled by army and power but by the people who have educated enough and intelligenty of knowledge of the defi ?

Is that the case of future if we see it going om ?

Topic: Cefi vs defi future of finances there is a question (Read 128 times)