What is DeFi, and could it upend finance as we know it?

The crypto industry wants to upend the giants of finance. And they have a word for their revolution: "DeFi."

After a litany of crises and scandals in traditional finance, legions of computer programmers decided to throw their hat into the ring, creating new infrastructure that took banks and other institutions out of the equation. Anyone with a computer and an internet connection could launch their own software for things like lending, trading or insurance.

But that lower barrier to entry opened the space to bad actors who wanted to swindle people out of their money. The industry’s rapid pace of development also led to bugs and programming gaffes, making it an easy target for cyber-savvy criminals. In 2021, more than $12 billion was lost to thieves and scammers exploiting DeFi protocols.

Now, after a plunge in crypto prices, and the demise of multibillion-dollar projects like Terra, regulators and law enforcement are paying more attention, zeroing in on the hackers and grifters making operating in the nascent industry.

Watch the video to learn more about DeFi, how it works, and what’s next for the industry as regulators seek to clean it up.

#CNBC #DeFi #Blockchain #Crypto #Finance

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[bakerkawesa]

A lot of people are going to lose money before things get better in DeFi. It is the wild west. That said, I have high hopes for smart contracts.

[JogBird]

im impressed that the presenter wore the same shirt, even though it obvious took many days to shoot this

[SuperFireburger]

The fact that the DeFi community has made it to a CNBC video is a sign of the times. let's see how things playo ut amidst the 2023 recession.

[leejr]

The current crop of DeFi projects have done their bit in spreading awareness about DeFi. I'm more interested in the new startups coming in. They're the ones with the real potential upend finance as we know it. I'm particularly into TakePile Protocol. One of the new projects with real utility. Eager to see how far they'll go over the next few months

[anonymousanonymous]

If a video or articles title is a question it’s almost always “no”

[noise]

Lol not the tumbleweeds rolling by at 4:31 😂

[yonatanbadash]

I have to say this video is on point i am extremely involved in the web3.0 world and i have to say i didn't except this video to be so good so congrats 🙌 👏

[victoridem]

Wow! Such a great video sir, this video has put me through on how to make money on DEFI and I appreciate that. I have actually been getting along with reef chain and this video has made me know much about defi. Reef Chain is an EVM compatible blockchain for DeFi, NFTs and Gaming.. Thanks ones again for the great video sir

[klankie]

settlement of transactions in defi could be done quick and cheap with xrp, like the flare network (defi)

[AntInvesting]

it will be great if you put this video or audio to Spotify for a audio

[rudygunawan]

Have been read about this blockchain, much as eliminating real money, it won't work unless you can convince all stakeholders in economic to use the same payment method. In my country Indonesia, the bank industry said they will get rid of printed money, but think about how the poor people economic working, they don't have any bank account, circulated money is just below 1 USD per day, they don't know internet, don''t have smartphone or just phone, are we going to leave them back to barter system? How about the whole world?

[nobody-]

I thought of getting into blockchain and Defi but there is something that concern me. One, there is risk in the network used for Defi transaction, the data though encrypted but can be stolen. Second no liability or responsibility in event something goes wrong. Thirdly there is a gas amount you have to pay for a transaction and it's not standard but rather fluctuate with how busy the network is. Finally crypto mining uses lots of energy. A centralised system could function properly with less energy than that.

[Dfm_Sushil]

Should I worry because I have only two stock and both are banks stock.

[Willks]

Finance needs to be centralized to be efficient. Especially with regards to inflation of course. The fact that the Fed was so criticized for acting too late to refrain inflation proves how important centralization is in a monetary system...

[MilesArray]

The video is amazing! Apart from defi LSDefi, on the other hand, is taking the world by storm, and Ethena is one of the new projects working on it. The USDe stable coin is being introduced. What are your thoughts on this?

[timtimtimmay]

The one thing the government hates most is competition. Expect strange hack attacks that get blamed on other countries that have fallen out of favor, lost data and money, and the government to step in with their CBDC, which is supposed to go live next year. They will be quick to cause the problem, blame it on others, and offer...I mean mandate...the solution while ensuring everyone it is for "safety", much like other recent "crises".

[jamesfranqui]

Is not like criminals aren't attracted to the US Dollar or Euro or GBP.

[mattmax]

DeFi protocols are garnering traction in the world's economy as such I did a lil research and discovered this Gem "Gearbox" it is a generalized leverage protocol that allows user to take leverage in one place and then use it across various DeFi protocols and platforms in a composable and flexible way.. This Gem is listed on CEX like MEXC

[Dsexh_dsexh]

What happens to the blockchain if another x-class solar flare strikes the earth?

[dhairya]

People, 5 years ago also believed that crypto will end stock trading and sovereign currencies, they’re nowhere to be seen