This week, I think its about time we cover some DeFi talk. So what is it, well… I’m not going to tell you what it is as there are frankly hundreds of articles out there on Decentralised Finance (DeFi) - This is a very good place to start though - What is DeFi?
Back to the main question - it is important not because it is going to replace banks, but because it will give people across the globe access to an alternative.
As an opinion piece, for me, choice is what it is all about in the end. You can decide to use your existing institutions or you can try a new one. Obviously the new one, will need to be superior in order to lure you away, so will have to work harder to gain trust and ensure its customers are treated fairly ( …while we are on this point, our regulators should take note, your job is to ensure fair competition to ensure all people get the best possible deal. It is not to pick sides - because if you do - you WILL be replaced).
Obviously I don’t really want to preach here, but if you are interested:
make sure you look into how DAI is created;
try understand why MakerDao’s protocol is so special;
look at high interest savings from Compound;
try to see how powerful a force “communities who work together” can be with their DeFi integrations - ie Uniswap, Link, KNC, Oasis etc etc etc.
Lastly, another good read on the topic is - A beginners guide to DeFi
