3 ms·
DeFi is not well-suited to do finance, i.e. lending and borrowing, because enforcing financial contracts typically requires the ability to exert coercive power,
by lottin 5y ago
DeFi is not well-suited to do finance, i.e. lending and borrowing, because enforcing financial contracts typically requires the ability to exert coercive power, which DeFi can't do. As a result, DeFi can only implement a small subset of not super-useful financial operations. It cannot replace conventional finance by any stretch of the imagination.
- Mvandenbergh 5y agoYeah. It would have to be a business where the assets of the operating business were themselves somehow subject to the blockchain logic but I can't see how that would work.