FTX mother pork

DeFi is the new black (and always should have been). Because in order to watch you need to open your eyes.

By Paraguanads | FreeSpeech | 29 Nov 2022


Given the events of the last few weeks in reference to the bankruptcy declaration of large crypto market makers such Alameda Research (FTX’s CEX owners), Three Arrows Capital and all those who behind them fell–and will fall–through the typical domino effect that never lacking in these facts, cryptocurrency users –many already dejected with such large losses– have looked back at the origins, the basics, always there but half-hidden by the narrative of large corporations who, through misleading advertising and “informative” longline, do not want the financial system of yesteryear to change.

sudden bankruptcy

If you are interested in knowing an independent “forensic” version about the bankruptcy of Alameda, FTX and more recently BlockFi, check this thread on Twitter https://twitter.com/ayko2718/status/1597432454070956032

Yes, my friends, I am talking about DeFi (acronym for Decentralized Finance), those for which many of us have been working for years and that today look more appetizing than ever given the efficiency with which money can be “programmed” and the fact that ¨between the sky and the blockchain there is nothing hidden¨*.

[*]: I note that there are privacy blockchains that make it impossible to track transactions such as Monero and Dash.

Truth before trust. The concept evolved with DeFi.

The norms in the Law together with the majority of contracts that are made between people are usually erga omnes (Latin locution for the phrase "in front of all" or "with respect to all") and taking into account that society has based its Fundamentals in the trust that is generated when sensitive issues are reviewed and handled publicly, without secrecy or prevarication.

Oh, how naive I am to think that in this society there is publicity for everything! But, as citizens, this is what we should demand from everyone who stands behind a power, right?

Public blockchains provide the user with everything that corporations and governments (which are already handled as the aforementioned without any embarrassment) refuse to show: real operational data that concerns everyone who has an interest within said organization.

Looking for reliable on-chain data feeds? Check Dune Analytics and look how amazing is this tool.

Through blockchains, anyone can observe the liquidity in the pools with all the available metadata, also taking into account that money can be followed in the blockchain, even using privacy protocols such as Tornado Cash, today sanctioned by the Great World Government (because we are aware of its existence).

Quite the contrary, corporations handle all their numbers privately and with minimal publicity (we also know how misleading those numbers are–from polls to financial data.), including the prices of assets with enabled leverage which, given their intrinsic characteristics and the time that has already passed since the generation of that asset, it is easy for The Power to be able to use those assets against the people and very difficult for the people to save themselves from the manipulation that The Power generates by making use of such assets in moments of greatest social and economic pressure.

Exchanges using my money against me

And yes, my friends, I am talking about Bitcoin as the main cryptocurrency with limited supply, more than 90% mined and circulating amounts in the wrong hands. The Bitcoin network has become the most secure one in the world but coins flew quickly from the hands of those who secure that network (miners from all over the planet) to the hands of dubious capital corporations determined to keep the poor, poor, and to get sick of what is healthy today.

The solution to money problems is not in Bitcoin.

For those of us who loved Bitcoin when it was born but today is completely different for what it became, the need for a more effective solution to the problems that «digital gold» had already generated in reference to scarcity, high fees rates and holders who accumulated more and inflated that bubble that came close to 70 thousand dollars, making thousands get rid of tangible assets to join "the money revolution".

We_dont_want_Bitcoin

Today, with Bitcoin in a tailspin, we have seen trillions of dollars liquidate in a market that already at first glance denotes manipulation through artificial intelligence managed in centralized exchanges without regulations, referring directly to Binance, who manage an exaggerated daily trading volume for this industry phase compared to other players with similar operations and based headquarters such as Crypto.com, Kraken and Coinbase, who handle more precise numbers.

But watch out! "Accurate" centralized data does not always mean reliable data, it is just better makeup.

The solution to Bitcoin's problems? Ethereum. I will explain my opinion that although it is true it could be far from reality, I try to be as precise as possible with the links that I delimit as a reference so that the title of this article is not a mere sensationalist clickbait.

Why Ethereum?

Born from the depths of mathematics, a technology emerged that was capable of providing what seemed to be a utopian dream: a merely technological consensus system that would allow not only intercontinental pecuniary business to be carried out paying fractions in fees, but also that said system promised scaling. with the future, in turn providing various commercial exchange systems without the need for third parties (liquid exchange protocols such as Uniswap, Curve, Balancer, among hundreds of others) in which the user always has the assets under their custody through the well-known keys.

Not your keys not your coins

A good comparison that would sharply define decentralized exchanges is this: imagine that you are a worker who receives your salary payment directly into your bank account, and that the visual interface of the bank where you receive your payment is more like a casino, in that the one in which there are hundreds of options to play (in our case they would be pairs of tokens to trade) that look juicier than not to "invest". The longer the exchange has been on the market, the more vices it will have and the ways to deceive people through “manipulable” promises.

My solution?

As society, start to downplay Bitcoin and focus on Ethereum and other similar assets that do keep their promises from the heart of their developments. Assets that are characterized by being efficient (Bitcoin was never yet "scaling" with the Lightning network, whose adoption is laughable), flexible in use and, above all, with existing amounts that are large enough for anyone to insure themselves, while at least some tokens by units.

Neither you nor I can have a complete Bitcoin. Perhaps pooling our savings in other tokens and "liquidating" some NFTs we could reach that amount, without taking into account the expenses we incur in outrageous fees for wanting to move that Bitcoin from one place to another, and the lack of flexibility thinking on Bitcoin as investment.

An asset that is expensive to manage is not useful, nor is an asset with a very limited circulation whose greatest circulation is in the hands of dark interests. Bitcoin is like that good friend who fell into deep addictions and with whom we could never count as before, since he refuses to receive medical help to treat his dependency.

Bitcoin is no longer DeFi, Ethereum is.

Remember that this is just my opinion, so I invite you to comment with respect: just as you would like them to answer in your post.

CZ keeping your funds

Is your crypto really yours?

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Paraguanads
Paraguanads

Venezuelan lawyer, IT support, DeFi advocate and @DexKit Consultant/Writer.


FreeSpeech
FreeSpeech

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