The DefI are not only deceiving and manipulating. In fact, in the original concept, decentralized networks serve to guarantee secure contracts between the parties, as simple as that!
In recent years, decentralized networks have developed very quickly based on the advance of the ethereum network concept. Based on the same blockchain security framework as the Bitcoin network, Ethereum has a feature called smart contracts.
If the Bitcoin network provided the possibility of doing p2p transactions without the need for a centralizing entity to validate, the Ethereum network allowed for conditions to be placed on this relationship.
On the Ethereum network, through this feature called smart contract, you can leave a sale, let's say, of a house conditioned to the deposit of money without humans saying: "ok, the money is in your account!".
The money is transferred only, and only, when the transfer of the house is made – and vice versa. Of course, both house and money would be tokenized first.
To get an idea of ??the power of smart contracts, they, through geckocoin, today raise a volume of more than 1.2 billion dollars.
But there is more than one way to manage contracts: the world is doing this “from-to” from the physical to the digital world, with countless use cases.
As for money, stablecoins in dollars, euros, reals or other fiat currencies already play this role.
The digital currencies of Central Banks (CBDCs), which are beginning to be born, also tokenized fiduciary values ??with national guarantees.
All this is only possible through the expansion of the Ethereum network. The 2.0 network, which had changed the network to a proof of stake (POS) network instead of the current proof of work (POW), was the means found to solve this.
But best estimates predict it won't be fully implemented until mid-2022.
The Bitcoin network took another path to solve this scalability problem: placing subnets, also called layers, above the Bitcoin network, the famous lightning network, is the best success case.
In this way, larger operations would be directly registered in the Bitcoin network and other layers would make the aggregation of smaller operations in a safe and transparent way, so that a large operation, representing several small ones, would be registered on the Bitcoin network.
This is a simplification of how the lightning network works.
Network security issues and interoperability between the various layers are points of attention that have been the focus of developers.
Today, the problem of interoperability between the various networks is the conversion costs. In the case of Bitcoin, this is also important when we talk about this connection between layers and Bitcoin core.
With an architecture of several integrated layers, each one with specific points to be addressed, such as the case of scalability in the lightning network, there are also other layers considering the issue of smart contracts. RSK, for example, already makes it possible to have smart contracts operating on the Bitcoin network.
With clearly different strategies regarding the future, a change in the core network to gain scalability and another with a more decentralized development structure via layers, the question remains as to which will be the most used blockchain network in the world in the near future.
DEFI is there accelerating in technology, which will provide, in a short period of time, the competition that, inevitably, will speak louder when someone decides to use this or that coin or token. Very good for users.
Also, with the arrival of digital central banks, regulation had taken place overwhelmingly, providing the stability and security necessary for cryptocurrencies to become the flagship in the commercial transactions of the future.
If this is achieved, a new value vector for Bitcoin gains strength, different from the store of value, to be linked in comparisons of transactions between commodities and national economies.
All of this, for that small investor, will be great: we were no longer so easily deceived and will allow you, honestly, to keep your savings in cryptocurrencies without worrying about them disappearing overnight.
Regulation is always good when it comes to protecting minors!
Regulation is needed to clean up the digital market from freeloaders!
But state regulation, interfering with the system, and politicized, is bad!
Only time will tell!
