Crypto Connections — 5 Innovative Ways Crypto Is Changing, Connecting CeFi, DeFi, And Cross-Chain Assets
Do you know how many crypto miners it takes to change a light bulb?
100,000. 1 to change the bulb, and 99,999 to verify it was done right and decide who gets the credit.
It’s easy to make jokes about crypto, and honestly, I love doing it — but the reality is that blockchain technology is changing the world, and that change is only going to increase.
Right now, there are only two things that are really holding cryptocurrencies.
The first is a lack of worldwide adoption. The second is a lack of connectedness between different cryptos and traditional financial systems.
The good thing is, once the second problem is solved, the first problem will also start to disappear.
Crypto’s aren’t going to get interconnected and start to work alongside centralized finance though… right?
Buckle up — because here are 5 things you should know about how blockchain technology is changing, right now:
1. CeFi — DeFi
Right now we have two almost entirely separate systems: centralized finance, and decentralized finance.
While DeFi is a huge technological leap, it also has several issues, as discussed above.
Right now, some innovative developers are working to connect the two systems in a way that will use the best parts of each to offset the problems of the other.
2. Crypto Collateral
One problem we often hear is that people can’t use their blockchain investments as collateral.
While they’re real funds, traditional banking systems don’t recognize them, and so they just get ignored.
This could all change by blending the two systems together, so you could generate a profit with your assets, while also using them as collateral.
3. Cross-Chain Wraps
You may have heard of cross-chain wraps before, if you keep up with the latest crypto-related news, but it’s an exciting new technology that’s worth mentioning.
This technique lets you effortlessly switch between different cryptocurrencies, so that you can make purchases or perform transactions with a second crypto — without selling your original tokens and buying the new ones.
4. Wrap Transparency
Cross-chain wraps as they’re being used today do come with one particular problem — you have to trust a 3rd party service to do all the transacting.
Given the nature of the blockchain, and its reputation for security, privacy, and transparency — that’s an issue for many users.
Any day now that problem should be solved, as built-in tools are being created to handle the entire process within the blockchain architecture, without involving any third parties.
I can already hear the questions.
How much is this going to cost?
Is there a fee every time?
Is it a flat rate, or a percentage?
What about a premium account?
Stop worrying, the developers of this new tool are making it all easy — there are no fees for wrapping or bridging services, and it’s simpler than you might think.
Blockchain technology is advancing rapidly, and now it looks as though it might not just replace traditional banking systems, but integrate the best parts of those financial institutions into its own architecture.
Will you be ready?
Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is the opinion of a third party and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions.
