In response to market’s cautious sentiment about hard fork Istanbul, ConsenSys marketer is predicting big changes in global finance thanks to Ethereum.
Marketer Mason Nystrom published a longread “2019 Was The Year of DeFi (and Why 2020 Will be Too)”. The article appeared on the blog of Сonsensys.net, one of the largest developers of services and applications on the Ethereum blockchain (900 employees). Mason Nystrom argues that Ethereum is building an alternative to a crumbling fiat system, with its “failing fiscal policies, currency manipulation and a shadow banking system that continues to feed fee-grabbing financial intermediaries”.
Mason Nystrom provides examples of solutions on Ethereum:
– Open finance is defined by platforms that can work together with a degree of transparency with functions that complement one another. Crypto lender Dharma, which launched on Ethereum in April, matches lenders and borrowers peer-to-peer, allowing people to earn interest on their crypto; Compound, an open-source, autonomous protocol, is currently earning interest for over $ 119 million in crypto assets; and Dai, a decentralized stablecoin pegged to the US dollar that is issued by the MakerDAO protocol and implemented as an Ethereum-based ERC20 token. These various protocols showcase the power of composability: 1) Dharma provides an open platform by 2) leveraging Compound’s open protocol, 3) which predominantly lends and borrows the dai stablecoin created by MakerDAO’s protocol, 4) all on top of Ethereum.
However, the marketer makes an important reservation in order not to completely scare the powerful fiat financiers:
– This movement is not merely throwing out the old financial system, but rather integrating with the current system where possible and creating where necessary.
After hard fork Istanbul, the last before shift to Ethereum 2.0, ETH is still under pressure and is unable to rise above the critical mark of $ 150. Probably, developers are puzzled by this behavior of the community and try once again to pay attention to the leading smart contracts platform. On the long-term, obviously, ETH has more chances to soar than the oldest cryptocurrency. But for now, all attention is focused on the strange behavior of BTC.