Feb 14, 2021
Why we need a Defi Sandbox to truly bring the masses to Defi and bring Crypto to the future.
I am a crypto holder, stock investor, and supply chain professional. This article provides an opinion on a concept of what could grow the crypto industry and how it could be great for society. This is an opinion and personal viewpoint and is not and should not be considered financial advice; however, after my experience seeing the increase in new investors and people playing in the crypto and defi markets I feel there needs to be a discussion of how do we truly get defi and crypto to the masses. If you need background on me feel free to connect with me on Twitter @BeagleKyle. I am also considering doing some YouTube videos in the future if you want to find me there just message me as I am still setting that up and it may be a little before I start posting.
Currently with the recent run-up in Bitcoin and Ethereum, Many are saying we are in a bull run and some are even saying we are in a super cycle with all the dollars created from global stimulus over the past year. But ask how many of the common people really understand crypto. What is bitcoin, what is defi, what does it do and why should I care is what many people ask. A lot of people don’t even understand general finance so you can see why everyone that’s in now is still early to the party. Bitcoin and further Defi can be the tool to create independent wealth and growth especially amongst the unbanked part of society. Crypto platforms offer great interest growth on your money. OkCoin provides 15%+; Chainge provide 8%+ and BlockFi provides 5% +. You also have liquidity platforms that allow currency holders to back loans and collect interest like AAVE. Then you have a web3 industry evolving with utility tokens such as graph and chainlink. You also have swapping systems such as uniswap and just swap. Then you have alternative blockchains and the list goes on. To the initiated, this may seem easy but to the masses, all they know is press and memes and hype vs how it all actually works. Celebs tweet constantly about Doge the joke of crypto and probably a day trader's dream token if you can time it. Someone should design a meme algorithm for that one to make money on.
This just a little bit but as one can imagine it can get complicated fast. For anyone who trades stocks know many platforms offer paper trading which allows you to learn in a centralized system before you get too deep. At this moment crypto is trial by fire and has a lack of protection until you test it out. Will this is not necessarily a bad thing it can cause a slower adoption rate due to fear basis which is needed for it to grow. This can be compared to the early days of the internet when it had the perception of fake sites, porn, and other crazy things but how many people could really live without it today. That is the same thing that will be said about blockchain and web3 someday. These industries will bring wealth, jobs, and money to a new generation so we need to make sure society gets what is going on. When fear exists it slows adoption often for the worse.
Crypto and Defi should especially create a testbed with easy visualization, concept creation, and simple development. This is going to be vital in enhancing the Defi community. Sites such as Coinbase learn and earn; CoinGecko for non us residents; and OkCoin are dabbling in this arena but where the industry lacks is testing how it works vs just AMAs and often people learn by testing and doing and being about to compare to something familiar in their current way of life whether it be a job, day to day processes, etc. For Defi especially the utility advantages to come through it need a way for the none crypto person to understand it so they ask is their crypto for certain processes and transactions vs what do you think of dogecoin. When people start to see to the utility of a new financial system and see how they can build groups of people to develop new ways of bringing old finance to new finance the industry will really take off. Chainlink is great for smart contracts but I ask the link marines how do you take a multibillion-dollar contract on the current ecosystem and convert it to a smart contract. The way you do it is easily explained with efficiency and better maintenance and less fraud and waste but the question any company would ask is how? Could we replace our entire global supply chain procurement system for physical goods with a mixture of filecoin, chainlink, and graph and is there anything missing for this ecosystem to exist, and does someone see what it is and can a sandbox where they can discuss the idea connect them with developers. These are just some examples but with a sandbox, it shows an easy way to test and try for newbs and really allows them to see the future without using actual money and be able to easily visualize the system without just seeing lines of code.
This is just getting into some topics that crypto DeFi sandbox can solve but there is so much more. For example, compare the concept of governance tokens which are just airdropped and sold on the first pop for a lot of people to the cost of a seat on the NYSE currently running between $4K and $4M (https://careertrend.com/how-to-get-a-seat-on-the-stock-exchange-13644275.html). Ask yourself what could be the future of things like Uniswap, OneInch, and others. Possibly but is there a way for interested parties to see how they could actually influence the system through voting rights and suggested changes to the ecosystem and actual implementation. For example, if someone has a solution for high fees on ETH people would love it, or if there is a way to clear traffic through fast lanes or a way to drill research at expediated speeds when researching coins to save time.
Anyway, just some thoughts on something I see missing from the crypto ecosystem that could truly bring it to the people and truly break down those barriers to entry and really bring crypto to the masses.
For more information on some of the companies I listed please feel free to research through my referral links.
