Brendan Blumer, CEO of Block.One is extremely convinced of the potential of ProFi (Programmable Finance), exceeding as well the capabilities of DeFi, to innovate the current financial system. So what are the issues with DeFi?
Below is a EOS Go Twitter thread on the subject:
Some really serious problems with the overt fees on ETH in particular. #DeFi should be about allowing everyone to participate. The #ETH defi game is only for those with deep pockets, others cannot play. How is this any different to what happens in legacy finance??
#EOSIO technology allows for near instant feeless transactions. There is no paying higher gas fees to front run those that are already waiting for the block to settle as EOSIO tech settles blocks on a first come first serve basis - again almost instantly....
Yes, there may be more liquidity on #ETH atm, but that does not mean it isn't a shark tank of high rollers out to pull value from the little guy. (Note: this can happen anywhere, even #EOSIO, but the difference goes back to paying higher fees to beat the herd in the transaction)
And yes, just because it is #DeFi doesn't mean that eventually the SEC might come knocking on some doors... We might not like regulation, but honestly, many big players will refuse to enter until they can something regulated to hold someone accountable...
We need to remember that the majority of the world does not care about decentralization or data privacy or the deck being stacked against them... the majority of the world wants to feel like there is someone they can talk to if something goes wrong- even if nothing is solved...
There're a number of problems with present DeFi, but as Brendan Blumer mentioned, eventually the wild west for this new method will come under scrutiny and the powers that be will crack down. Hoping whatever Block.One is working on will put them & #DeFi on #EOS in the clear ;D
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