Coinbase Says Decentralized Finance Takes Over Traditional Financial Platforms
2020 kicked off great for the crypto space with all kinds of highly optimistic predictions for the next decade regarding cryptos and the developments in the space. Also, price forecasts look great for 2020 as well.
Decentralized finance to replace traditional platforms
Coinbase said that the growing decentralized finance movement is creating a globally accessible and a more open alternative to traditional financial platforms.
DeFi platforms are created to transform typical savings, loans trading, and insurance practices. These can offer alternatives that have the ability to remove third parties, and they also provide access to anyone who has a simple Internet connection.
The Daily Hodl reported that Coinbase explains who smart contract-based blockchain, such as Ethereum, allows developers to create “far more sophisticated functionality than simply sending and receiving cryptocurrency.”
These software programs are called Dapps (decentralized applications) that are running on platforms based on blockchain. They create immutable records that cannot be manipulated.
Dapps vs. legacy systems
Coinbase explains the difference between Dapps and legacy systems. The exchange says DApps are different from legacy systems in several ways.
“Business operations are not controlled by a single organization. The business rules are programmed using smart contract languages.
The source code resides on the blockchain, making it more transparent and auditable,” according to the online publication mentioned above.
More than that, it’s also worth noting that DApps are designed to run globally, and they are not restricted to specific locations. They are also interoperable with other platforms and permissionless, and this means that everyone can contribute to their development.
Coinbase said: “Something magical is happening in the open financial system — crypto is bringing money online, and we’re seeing a quantum leap in what’s possible when it comes to the functionality of money. It’s a rare opportunity to see an entirely new industry blossom from scratch.”
Overall, as we already said, the predictions regarding decentralized finance are extremely optimistic.
It’s also worth noting that Coinbase CEO recently said that we should be expecting a massive wave of adoption. Brian Armstrong expects more than 100 million investors in crypto soon.
Brian Armstrong is the co-founder and CEO of Coinbase, one of the largest crypto exchanges in the world (its reported Coinbase holds 966,230 Bitcoin ($7B) in Cold Wallet). Prior to his involvement with the blockchain and Coinbase, Armstrong worked at Deloitte and Touche as an Enterprise Risk Management Consultant.
Coinbase is a digital currency exchange headquartered in San Francisco, California.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.