For the world’s libertarians, De-Fi opens the doors to financial freedom and ensures complete privacy. Also, it has a ton of other benefits to offer its users, which anyone can find out through a simple search. However, its most ardent promoters may not be aware of its most “mind-blowing” feature.
Referring to cryptocurrencies, in his article published on Hackernoon, Daniel Jeffries writes, “It’s a stealth feature, one that hasn’t activated yet.” He predicts that its activation will reshape every aspect of society.
Let’s see what’s all the buzz about this “mind-blowing” feature of Decentralised Crypto Trading?
It is the power to distribute money without seeking the permission of a central bank.
Government has No Control over Cryptocurrency System
A government is quick to brand a currency, not issued or approved by them, as illegitimate. Jeffries states that since ancient times, kings and governments have crushed anyone who has created an alternative currency. They have attacked them with a weapon called “unlicensed.” The U.S. government’s shutdown of e-gold, the digital gold currency, is a testimony to that.
Governments find it easy to destroy something that has centralized control. They have to cut off the head, and automatically, the rest of the parts ceases to exist. Governments cannot use the same strategy to kill entities that have decentralized control. Jeffries equates decentralized systems with a hydra, the fresh-water organism known for their regenerative ability. “Cut off one head and two more pop-into take its place,” he says.
In 2008, Satoshi wrote that governments are “good at cutting off the heads of centrally controlled networks like Napster, but pure P2P networks like Gnutella and Tor seem to be holding their own.”
Well-Known Aspects of Cryptocurrencies
Most digital currencies are decentralized systems based on blockchain technology, a distributed ledger that enables peer-to-peer (P2P) transactions. They have reduced the role of government regulators to minimal or nothing, who don’t issue or control the supply of digital coins. Cryptocurrencies are also censorship-resistant.
However, cryptocurrency has yet to tap its strongest feature, which Jefferies calls the “latent feature.” If a system incorporates this feature, it will put money in the hands of everyone.
De-Fi’s Feature that No One Talks About
The true power of decentralized finance is the power to exchange and trade value for goods and services without a central power.
The power to exchange and trade money entirely eliminates the control of the central authority. It empowers people. It is important to note that unlike governments, no cryptocurrency system currently distributes money, along with creating it. The present cryptocurrency systems reward miners and those who are providing service to the networks. None of the loan money to others.
For many Bitcoin is seen as the store of value but in its true sense Bitcoin is anything and everything that a fiat currency can never be.