Could DeFi be Crypto?s DeFining Moment"
Cryptocurrencies have long been derided for being a solution looking for a problem, but could decentralized finance or DeFi silence critics once and for all"
The post Could DeFi be Crypto?s DeFining Moment" appeared first on LUXUO.
Image: Unsplash/Art Rachen
A conduit for crime and a receptacle for ransom are just some of the nefarious uses cases which critics of cryptocurrencies have highlighted as limiting their broader adoption.
And while it?s true that some of the earliest adopters of Bitcoin did indeed use the cryptocurrency to buy illegal narcotics, or in demand for unlocking corporate data that had been hacked and locked up, the nascent asset class has since moved on from its early parlour tricks.
To be sure, cryptocurrencies are still used to facilitate money laundering, criminal activities and in ransomware attacks, but for the longest time, so has the U.S. dollar and other fiat-based currencies.
In fact, a recent study by blockchain analytics firm Chainalysis reveals that by 2020, the share of all cryptocurrency activity that was used for illicit transactions had fallen to just 0.34%.
Another leading blockchain forensics firm CipherTrace, estimates cryptocurrency?s share of illicit transactions to be less than 0.5%.
But the rise of an ecosystem of financial services known as decentralized finance or ?DeFi? in cryptocurrency parlance, may be challenging stereotypes that cryptocurrencies have very few uses outside of speculation ...
The post Could DeFi be Crypto?s DeFining Moment" appeared first on LUXUO.
Image: Unsplash/Art Rachen
A conduit for crime and a receptacle for ransom are just some of the nefarious uses cases which critics of cryptocurrencies have highlighted as limiting their broader adoption.
And while it?s true that some of the earliest adopters of Bitcoin did indeed use the cryptocurrency to buy illegal narcotics, or in demand for unlocking corporate data that had been hacked and locked up, the nascent asset class has since moved on from its early parlour tricks.
To be sure, cryptocurrencies are still used to facilitate money laundering, criminal activities and in ransomware attacks, but for the longest time, so has the U.S. dollar and other fiat-based currencies.
In fact, a recent study by blockchain analytics firm Chainalysis reveals that by 2020, the share of all cryptocurrency activity that was used for illicit transactions had fallen to just 0.34%.
Another leading blockchain forensics firm CipherTrace, estimates cryptocurrency?s share of illicit transactions to be less than 0.5%.
But the rise of an ecosystem of financial services known as decentralized finance or ?DeFi? in cryptocurrency parlance, may be challenging stereotypes that cryptocurrencies have very few uses outside of speculation ...
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