The Decentralized Economy During COVID-19 - page 2.

Argoo

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Quote from: Abiky on July 10, 2020, 10:19:05 PM

Ever since COVID-19 took the world by storm, people have been resorting to the world of "Decentralized Finance" (De-Fi). Ethereum-based smart contracts provide many services known in the traditional banking industry such as lending and borrowing. There's been a boom in "De-Fi" tokens over the past months as the mainstream economy loses traction.

If the current monetary system collapses in its entirety, people will dive in the decentralized economy like never before. It seems that COVID-19 is accelerating adoption of decentralized cryptocurrencies as we speak. The longer the outbreak takes to disappear, the better it'll be for the growth of "Decentralized Finance". I've seen many people talking about ETH's several "De-Fi" platforms, bringing some hype to the industry. Compound tokens (COMP), and even DAI have increased in popularity in such a short amount of time.

Do you think that COVID-19 will become extremely beneficial to the decentralized economy in the long term? Is "De-Fi" way overhyped these days? What will happen with crypto once COVID-19 comes to an end? Your input will be greatly appreciated.

For a decentralized cryptocurrency, it is not profitable to spread the coronavirus, but its consequences in the form of a global economic crisis. It is the onset of the economic crisis and the high inflation of the common currencies of states that will inevitably arouse people's interest in decentralized cryptocurrency as a financial asset that is not subject to inflation.

thesmallgod

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De-Fi has been subject of discussion not only here on BTT but also on crypto blog but I'm yet to understand the usage and hopefully if it will address many problem that will pave way for more adoption. I believe reason why it is not getting hyped is due to growing lost of interest in investing in crypto. I also don't see the correlation between the pandemic and how it can help De-Fi

Twentyonepaylots

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Quote from: exstasie on July 13, 2020, 04:41:05 AM

Quote from: hatshepsut93 on July 12, 2020, 05:29:07 PM

This is absolutely misleading, DeFi isn't a competitor of traditional finance, all it does is that it allows you to take collaterized loans or flash loans (loans that are instantly returned back). You can't take a loan to start a business, you can't take mortgage, you can't take a student loan, you can't even ask for a small emergency loan.

In the future, I think we'll see more and more asset tokenization. That will be the basis for liquid secured loan markets. This includes real property mortgages, auto loans, etc.

I think we have a thread about this tokenization of asset, I've already read trials about tokenization, eithere China or Russia but as far as I know there have been some conflicts with tokenization coz people are still in doubt with these new kind of assets. We need probably more years to establish a well founded system that will work, plus the maturing population of the world matters. You can't convince an 80 year old to transfer his money into digital, they don't even know what twitter is.

Quote from: exstasie on July 13, 2020, 04:41:05 AM

I think once we have more robust decentralized/digital ID protocols and reputation-based systems, we'll also see more integration of unsecured credit into DeFi protocols.

I guess this is the assignment of the tech companies now for the future, guess they already started testing one of these, especially the digital IDs.

Quote from: exstasie on July 13, 2020, 04:41:05 AM

The big problem for now, besides volatility and the problems of DAI-like stablecoins, is that so much money is going to be lost to bad code and unreliable smart contracts. This stuff is nowhere near prime time. So when I talk about this stuff, I'm talking long term, like decades from now. And that's if this all isn't just empty hype and the whole sector doesn't fizzle out.

In next 5 to 8 years for me, it would not take a decade for us to build a system like this, especially now that we have this global dilemma.

stompix

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Quote from: hatshepsut93 on July 13, 2020, 10:56:55 PM

More like "if" we have decentralized identities, because there's still nothing even close to them. When it's trivial to obtain KYC documents and other personal data, or use neural networks to create fake one, you can't make a system that verifies identities without third parties. Plus this DeFi acts on a global scale, so a person from Canada can get scammed by someone from Bangladesh and have zero chance of prosecuting them.

You're going to be amazed how the perception of people will change once they have to deal with really decentralized things.
Just how people who are not trusting their banks with their deposits are praising Zhao just when he says "Funds are SAFU" and don't even doubt him the same will happen to these. At first, it will be wow, decentralized, then it will need some sort of authority, arbitrage, then more and more, insurance, then control, then KYC and sooner or later the whole things will just have the label "decentralized", like all the "bio" products at Walmart.

Quote from: naikturun on July 13, 2020, 11:05:43 AM

You don't have to know it in detail, because the rest of the market will play a role in it. My friend tries to buy ico on a new coin which of course uses de-fi, and the coin rises very quickly in a short time and almost makes 10x the price of ico.
sounds like hype but that's the truth

I wonder what could go wrong if we all invest and expect a x10 price ROI.

Botnake

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Quote from: Haunebu on July 14, 2020, 07:14:39 AM

COVID-19 has had a small effect on the crypto market to be honest. If the effect was huge, we probably would have witnessed a huge bull run by major cryptocurrencies thanks to an influx of new investors from around the world, but that clearly isn't the case here.

The effect that we are seeing here is so positive, it resulted to a good price and bitcoin was able to recover easily although early this year it was dumped when the covid-19 was announced as a pandemic.

personally, I am not expecting it result to a stable market, I was thinking it would follow with the stocks but I'm glad I was wrong and now I'm confident that bitcoin will never die as we have survive in this situation.

Haunebu

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COVID-19 has had a small effect on the crypto market to be honest. If the effect was huge, we probably would have witnessed a huge bull run by major cryptocurrencies thanks to an influx of new investors from around the world, but that clearly isn't the case here.

Major cryptocurrencies like BTC have been stable for sometime now ever since the pandemic swept the world which proves my point. This is why DeFi hasn't gained much from the pandemic.

Among these cryptocurrencies, BTC is still way more popular than the others and I am expecting it to stay that way once the pandemic ends.

TheGreatPython

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Probably the current pandemic conditions are accelerating most people toward adopting cryptos and thinking about having financial commitments within themselves rather than depending on government nor corporate. But, I do see people one day or other, will start realizing the benefits of not depending on centralized things for their finance related needs and surprisingly that started happening in real world big thanks to covid19 pandemic and slow economic conditions everywhere.

I mean, it has to happen slowly over the time but due to pandemic things, it is already started happening in better pace.

Quote from: Abiky on July 10, 2020, 10:19:05 PM

What will happen with crypto once COVID-19 comes to an end?

I think decentralized fiance related services will persist by considering the continents, it can provide to common people; there cannot be big reasons for people to get back to centralized things. Once people realize the big benefits of decentralization then they will never stop using it, I am very much sure Cheesy

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hatshepsut93

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Quote from: exstasie on July 13, 2020, 04:41:05 AM

I think once we have more robust decentralized/digital ID protocols and reputation-based systems, we'll also see more integration of unsecured credit into DeFi protocols.

More like "if" we have decentralized identities, because there's still nothing even close to them. When it's trivial to obtain KYC documents and other personal data, or use neural networks to create fake one, you can't make a system that verifies identities without third parties. Plus this DeFi acts on a global scale, so a person from Canada can get scammed by someone from Bangladesh and have zero chance of prosecuting them.

Police Indo

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DeFi is a smart contract as real proof of the application of blockchain technology and other accompanying techniques. However, because this is still in its very initial form, it is possible to make mistakes in implementing the program code, so that public trust must be maintained. this is a common problem of its application, especially if on a large scale. ISO standardization is needed so that its smoothness is guaranteed.

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Quote from: The Sceptical Chymist on July 12, 2020, 05:37:03 PM

I've heard that term "de-fi" before, but I can't say I know much about what it means, and I'll have to school myself.

But even without knowing what that is exactly, as far as the topic of this thread goes I don't think COVID-19 is having much to do with decentralized finance, either with those tokens or crypto in general. There's been less use of cash because of fear of handling money that's potentially contaminated, but nobody I know IRL is using crypto any more than they were prior to the outbreak--and I don't see why it should be that way in any case.

Quote from: davis196 on July 12, 2020, 07:29:32 AM

2.Decentralized finance is a buzz term,just like blockchain technology,smart contracts and Dapps.
I won't be surprised if the De-Fi projects turn out to be the ICOs of 2020-a bunch of scams.

Interesting. And you might be right, since I'm pretty sure people are looking for the next ICO-thing now that ICOs themselves have turned out to be all scams or worthless projects. That'll never end until people realize they're not going to get rich by doing nothing.

You don't have to know it in detail, because the rest of the market will play a role in it. My friend tries to buy ico on a new coin which of course uses de-fi, and the coin rises very quickly in a short time and almost makes 10x the price of ico.
sounds like hype but that's the truth
maybe soon we will see a lot of de-fi scam projects.
it won't take long.

exstasie

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Quote from: hatshepsut93 on July 12, 2020, 05:29:07 PM

This is absolutely misleading, DeFi isn't a competitor of traditional finance, all it does is that it allows you to take collaterized loans or flash loans (loans that are instantly returned back). You can't take a loan to start a business, you can't take mortgage, you can't take a student loan, you can't even ask for a small emergency loan.

In the future, I think we'll see more and more asset tokenization. That will be the basis for liquid secured loan markets. This includes real property mortgages, auto loans, etc.

I think once we have more robust decentralized/digital ID protocols and reputation-based systems, we'll also see more integration of unsecured credit into DeFi protocols.

The big problem for now, besides volatility and the problems of DAI-like stablecoins, is that so much money is going to be lost to bad code and unreliable smart contracts. This stuff is nowhere near prime time. So when I talk about this stuff, I'm talking long term, like decades from now. And that's if this all isn't just empty hype and the whole sector doesn't fizzle out.

MCobian

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Does not bring any advantage COVID-19 for decentralized economy if in the long run, because COVID-19 if it still exists in the long run
will have a negative effect on everything. In my opinion, absolutely overhype right now is decentralized finance, and this is not something
good. Has no effect on cryptocurrency once COVID-19 will end soon, although in a few months the vaccine was finally found and COVID-19
ended. That will not affect cryptocurrency, now crypto is starting to rise in popularity and of course the price is slowly rising too, despite the
spread COVID-19 is still happening.

RealMalatesta

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Crypto in general did see an increasing number of people dealing with it, I do enjoy that fact because it has always been something that I cared about, the price could go up or down and that is fine, but the number of people dealing with crypto should always go up in my book. That is why I think this pandemic was good on crypto, overall it was a horrible thing and hundreds of thousands of people died, I would rather have those people back instead of crypto going up any day of the week.

However if there is at least one good in it, we should take a look at the silver lining as something we can't change and have to accept. Did this affected de-fi? Probably, but it affected all crypto stuff so it is not really that shocking that one part of it got some attention as well.

The Sceptical Chymist

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I've heard that term "de-fi" before, but I can't say I know much about what it means, and I'll have to school myself.

But even without knowing what that is exactly, as far as the topic of this thread goes I don't think COVID-19 is having much to do with decentralized finance, either with those tokens or crypto in general. There's been less use of cash because of fear of handling money that's potentially contaminated, but nobody I know IRL is using crypto any more than they were prior to the outbreak--and I don't see why it should be that way in any case.

Quote from: davis196 on July 12, 2020, 07:29:32 AM

2.Decentralized finance is a buzz term,just like blockchain technology,smart contracts and Dapps.
I won't be surprised if the De-Fi projects turn out to be the ICOs of 2020-a bunch of scams.

Interesting. And you might be right, since I'm pretty sure people are looking for the next ICO-thing now that ICOs themselves have turned out to be all scams or worthless projects. That'll never end until people realize they're not going to get rich by doing nothing.

hatshepsut93

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Quote from: Abiky on July 10, 2020, 10:19:05 PM

Ever since COVID-19 took the world by storm, people have been resorting to the world of "Decentralized Finance" (De-Fi). Ethereum-based smart contracts provide many services known in the traditional banking industry such as lending and borrowing. There's been a boom in "De-Fi" tokens over the past months as the mainstream economy loses traction.

This is absolutely misleading, DeFi isn't a competitor of traditional finance, all it does is that it allows you to take collaterized loans or flash loans (loans that are instantly returned back). You can't take a loan to start a business, you can't take mortgage, you can't take a student loan, you can't even ask for a small emergency loan. In traditional finance, you can even just show you id and get a small personal loan from your bank, which will never be possible with Ethereum, because it's trivial to show fake KYC documents.

naikturun

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whereas de fi project has always been there and there are many types, but it is only now that the concept and its use have seen since the economy has weakened and the platform that provides de fi will be looked at, the opportunity was deliberately utilized by several parties and then hype for several new and old projects .
seems to have been successful enough to revive the crypto market, which is slowly getting better.

Russlenat

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I think COVID-19 has resulted to the growth of the crypto market, we can tell by its numbers, if we are affected with the pandemic, the market could have collapse just like what happen to stocks, but it does not happen, instead, bitcoin and the crypto market is quite stable now.

It's hard to guess but I like give mine, I think there might be surprise this year which I think good for the market, a bullish market might come although majority would not expect that to happen but crypto market is just full or surprise, betting against the majority works here.

davis196

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1.The current fiat monetary system won't be destroyed anytime soon.
2.Decentralized finance is a buzz term,just like blockchain technology,smart contracts and Dapps.
I won't be surprised if the De-Fi projects turn out to be the ICOs of 2020-a bunch of scams.
We all remember how cool and popular ICOs were in 2017.How the initial coin offerings are gone.
We can't automate lending and borrowing.If it was so easy to automate lending and borrowing,all the banks would be 100% online,without any bank clerks and offices.

hunter7519

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This covid-19 has proven to be a humanitarian crisis and tragedy with dire economic consequences. Unprecedented declines in global trade and travel along with an ordered lockdown of a large proportion of the global workforce have led to drastic decreases in productivity, with uncertainty reigning supreme in markets.
In these tough times, the centralized economic processes have been heavily tested, and the cracks in these systems have become apparent.

Fraught with intermediaries and single points of failure, these systems aren’t structurally equipped to deal with crises. It is in light of these weaknesses that we must turn to the incorporation of distributed and decentralized systems and technologies into current systems and move towards a more decentralized economy.

adamistraybar

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well remeber at start wen all currcnices went down drain tey recocovered but still not 100% Decentralized because tradtional services effect tem lots

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