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How To Fix DeFi: A Three Step Guide To Save The Industry

The UX for most platforms is nothing close to what one would expect from multi-million dollar projects, where even the most straightforward layouts can be complicated, accompanied by poor documentation, leaving the majority of crypto enthusiasts frustrated.Premium
The UX for most platforms is nothing close to what one would expect from multi-million dollar projects, where even the most straightforward layouts can be complicated, accompanied by poor documentation, leaving the majority of crypto enthusiasts frustrated.

It is no secret that the promise of transparent and uncensored access to a global decentralized financial system has been predominantly empty due to an over-complicated interface, confusing set of services and lack of clarity around liquidity pools and yields on various tokens

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A handful of analysts has well documented the persistent challenges decentralized finance faced, and the recent Terra ecosystem collapse re-enforced the fact that something is inherently wrong with DeFi. What used to be the most rapidly developing industry at crypto has currently faced an existential crisis and may not get any better until projects can focus more on security, regulation and usability rather than liquidity draining and rug-pulls. In today's editorial, I would like to delve into what experts say DeFi has to change if it wants to survive and why the PrivaCrip project is relevant. Let's dive in. 

 

Improve Usability Or Die

 

It is no secret that the promise of transparent and uncensored access to a global decentralized financial system has been predominantly empty due to an over-complicated interface, confusing set of services and lack of clarity around liquidity pools and yields on various tokens.

 

The UX for most platforms is nothing close to what one would expect from multi-million dollar projects, where even the most straightforward layouts can be complicated, accompanied by poor documentation, leaving the majority of crypto enthusiasts frustrated. In addition, the constantly growing list of blockchain networks, each supplying its own DeFi ecosystem, only hinders the arrival of newcomers, who may not only never used a wallet before but also has zero clue about cross-chain transactions. 

 

Ultimately, there is nothing better than to double down on crypto enlightenment and education about the pitfalls of DeFi to create a more trusted environment. Otherwise, you would inevitably face the same problem as the current financial system goes through, where only a tiny fraction of the population reaps the benefits.

 

Security Is Paramount

 

The DeFi sector is notorious for being the wild west. Anyone can launch a project with flashy promises only to pull the rug from naive investors behind the closed curtains, leaving them with nothing. Even the projects that mean well fall victim to manipulations with smart contract vulnerabilities that can drain liquidity from unexpected victims. 

 

One of the recent examples exposing the aforementioned problems occurred in February of 2022, the hack of the Wormhole token bridge, resulting in the loss of 120,000 wrapped Ether (wETH) tokens. 

 

If we want people to continue exploring the numerous possibilities the DeFi offers without the government snooping too much, it is absolutely vital to ensure that a greater level of security is in place. Every project should impose protection from malicious actors and protocol exploits, which should be an essential feature for any DeFi project to be audited. 

 

Self-Regulate Or Face Consequences

 

Many DeFi analysts and industry specialists, including Andre Cronje, believe that there is a need for greater regulatory clarity. Despite being a stumbling block for many crypto enthusiasts, reality dictates its own rules. The DeFi has enjoyed independence for nearly three years now and so far failed to deliver a comprehensive set of rules the projects must adhere to. 

 

Again, the Terra collapse probably was one of the final nails into the DeFi coffin. At this point, it is probably safe to assume that we need regulations to help the industry grow and mature. What these regulations will look like is hard to tell, but one thing remains adamant: they will move the industry forward. 

 

Can PrivaCrip Save DeFi? 

 

http://privacrip.io/

 

The short answer is yes and no. The no part refers to the project aiming to build yet another all-encompassing network with its separate blockchain. From what we discussed in this article, this is a dead-end route as the industry needs less to invent new protocols and more to improve the existing ones. 

 

However, the PrivaCrip (PRCR) project also understands the importance of security, especially of users' data, comprising almost every layer of DeFi. In this respect, the project's desire to deliver the protection of users' information while maintaining the speed and scalability of the network is definitely a step in the right direction. 

 

Guaranteeing that information stays secret and is never split to the node administrator or application designer without the user's permission could indicate that the Defi industry is on the right track, thanks to the PrivaCrip (PRCR) project. After all, blockchain technology's very nature is transforming how we perceive and transfer information to unlock new ways of communication with absolute security, privacy and speed.

 

If you want to learn more about PrivaCrip visit their website for information. 

PrivaCrip (PRCR)

Disclaimer: This article is a paid publication and does not have journalistic/ editorial involvement of Hindustan Times. Hindustan Times does not endorse/ subscribe to the contents of the article/advertisement and/or views expressed herein.

The reader is further advised that Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.

Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the views, opinions, announcements, declarations, affirmations etc., stated/featured in same. The decision to read hereinafter is purely a matter of choice and shall be construed as an express undertaking/guarantee in favour of Hindustan Times of being absolved from any/ all potential legal action, or enforceable claims. The content may be for information and awareness purposes and does not constitute a financial advice.

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