Ex-Coinbase Engineer Gives Tips For 100x DeFi By CoinQuora
© Reuters. Ex-Coinbase Engineer Gives Tips for Multiplying DeFi by 100
- A former senior engineer at Coinbase (NASDAQ:) shares advice for the DeFi industry against traditional financial economies.
- According to him, global e-commerce companies made $2.2 trillion in revenue last year, while NFT creators only made $3.9 billion.
- Functions of DeFi include issuing stablecoins, peer-to-peer or pooled lending, and more.
Blake West, former Principal Engineer at Coinbase, shares tips he thinks could give the decentralized finance (DeFi) industry a better competitive edge over traditional financial economies.
He did so via a 12-paragraph (NYSE:) Twitter thread on June 9, 2022, in which he began by asking a question: “You want DeFi to grow 100x from here? The answer is to be boring!
First, he compared market earnings. According to him, global e-commerce companies made $2.2 trillion in revenue last year, while non-fungible token (NFT) revenue from creators was just $3.9 billion.
West argues that speculative activities in crypto, NFTs, games, or social web3 are great but would do the DeFi industry less good. He thinks the DeFi industry needs to move away from speculation and into the boring day-to-day financial activities of legacy industries.
He added that the DeFi industry would only prove a strong adversary when it solved financial problems more effectively.
Ad spend was not just for “internet native” activities. He stole market share from television, radio, newspapers, etc. because it offered a better way to solve the same problem. The challenge before DeFi is therefore the same as that faced by all other technologies that aim to disrupt the status quo. It must solve the same old problems, only better.
According to Binance Academy, DeFi is the use of decentralized networks and open source software to create financial services and products. Functions of DeFi include creating monetary banking services such as issuing stablecoins, providing peer-to-peer or pooled lending and borrowing platforms, and enabling advanced financial instruments such as such as DEX, tokenization platforms, derivatives, etc.
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