DeFi

Wall Street’s DeFi land grab means less anonymity, more identity checks – DL News

Published

8 months ago

30 May, 2024

CoinFlix Staff

Wall Street's DeFi land grab means less anonymity, more identity checks – DL News

Wall Street cannot use DeFi protocols without knowing who its counterparty is.
This will lead to more protocols implementing identity checks.
A new hybrid model – partly centralized, partly decentralized – could emerge.

Wall Street is getting into crypto. And that will likely mean the end of DeFi as we know it.

“A lot of institutions are actually fascinated by DeFi,” said Darius Tabai, co-founder of Vertex. DL News. “The problem is that DeFi is still in Wild West mode.”

DeFi allows anyone, anywhere to carry out complex financial transactions – for example, taking out a loan on Ethereum via the MakerDAO lending protocol – without needing to show identification.

And since these protocols are lines of code rather than companies with an office, there’s no one to send this identification to anyway.

This is a big problem on Wall Street, where companies are legally required to assess counterparty risk, meaning who is on the other side of the transaction.

A former global head of metals trading at Merrill Lynch and Credit Suisse, Tabai said most institutions would not be able to use protocols that do not require identification.

The solution?

“It’s been clear to people for some time that there will be a next generation of DeFi platforms that are permissioned in one way or another,” he said.

Join the community to receive our latest stories and updates

Hybrid models

Crypto projects generally fall into one of two categories: centralized or decentralized.

Centralized platforms, like Binance or Circle, operate like businesses and require identity checks.

But decentralized protocols, like Uniswap or Tornado Cash, are open source software driven by their communities – at least in theory – that anyone can use without providing information about themselves.

These two categories will likely converge into a hybrid that takes advantage of the security provided by blockchain technology while retaining the efficiency and identity controls of centralized models, Tabai said.

Concrete example: Vertex, a perpetual The exchange he co-founded executes transactions off-chain, like a centralized company, but records all transactions on-chain, like a decentralized protocol.

And while it doesn’t yet have KYC or know-your-customer controls in place, the team uses third-party monitoring services like Chainanalysis to flag high-risk wallet addresses.

Vertex is not the only protocol to organize itself this way.

Cube.exchange, a trading platform launched in December, has already implemented KYC controls. But users can track where their funds are in real time, just like when using a decentralized platform.

Cube’s hybrid design prevents the team from misappropriating customer funds or hackers from siphoning them off. These issues have plagued crypto since the demise of Mount Gox in 2014, and they came back to the forefront when FTX collapsed in 2022.

“Hybrid models solve a number of problems that have easily attracted criticism and provide a much superior experience to centralized and decentralized exchanges,” said Bartosz Lipiński, co-founder and CEO of Cube. DL News.

Evolution

For Tabai, this model will only become more widespread.

“Some of TradFi’s standards are going to start to apply to crypto,” he said. This includes KYC checks, which Tabai says were not ubiquitous just five years ago.

“Now all centralized exchanges do these checks,” Tabai said. “It makes sense that on some level, DeFi will likely do the same.”

Lipiński, meanwhile, said “many” decentralized exchanges already carry out identity checks to comply with anti-money laundering rules.

And that could be enough for Wall Street to start using these platforms once regulatory uncertainty around crypto dissipates, he said.

“It’s not a new idea,” Tabai said. “It’s just an idea that’s being refreshed.”

Tom Carreras is markets correspondent for DL News. Do you have a tip on Wall Street and DeFi? Contact us at tcarreras@dlnews.com

Fuente

Related Topics:know your customer summit protocol

Up Next

Telegram Wallet introduces stricter KYC rules

Don't Miss

Ethena brings a synthetic dollar to blow up layer 2

CoinFlix Staff

We are the editorial team of CoinFlix, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on CoinFlix, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

Click to comment

DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

Website: https://presale.rollblock.io/

Social networks: https://linktr.ee/rollblockcasino

No spam, no lies, only insights. You can unsubscribe at any time.

Fuente

DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

Don’t miss a thing – Subscribe to receive email alerts directly to your inbox

Check Price action

follow us on X, Facebook And Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured image: Shutterstock/ktsdesign