The Ethereal Summit is a collaboration of entrepreneurs, startups and other technological entities.
It is currently happening in Tel Aviv, Israel. The summit included “Q&A On Ethereum 2.0 With Vitalik”, which was a very interesting discussion featuring the future of the network, and its scalability solutions. It was lead by Vitalik Buterin, for the curious to satisfy their curiosity.
Another attractive discussion of the Ethereal Summit, namely “What is DeFi (Decentralized Finance)?” was led by Lex Sokolin, the Global Fintech Co-Head, ConsenSys. The segment featured a discussion about the recent trends of macro-finance and technology that have caused the observed growth in decentralized finance. Here, Buterin mentioned the intolerable instances of fraud regarding Initial Coin Offerings (ICOs).
What we got so far from the Ethereal Summit
Despite ICOs being a trending discussion for the last two years, the public has considered the projects for ICOs as swindles after the occurrence of numerous failed deliveries and deployments of the promised product.
For this failure regarding the ICOs, Buterin put together a solution, namely “public interest projects”. The solution features the use of the concept of decentralized finance. According to this scheme of his, users should put tokens into smart contracts which will restrict developers from taking their tokens or having any access to them. The assets will be stored, particularly in Compound, and the developers can simply receive the interest.
This will save users from trusting developers blindly or be subject to any scams by having their tokens locked. The developers will be funded by the interest from the stored assets in a DeFi solution.
What is DeFi?
The trending concept of decentralized finance involves the use of decentralized networks and open-source software to make conventional financing systems have transparent protocols. DeFi will make systems that are based on blockchain technologies less costly, easily accessible and a lot more efficient.
Buterin expressed excitement while saying that the DeFi offers users a safer system to perform payments and transactions. He added that the system allows people located anywhere on the globe to have more controlled and convenient access to payments. Though Buterin does not encourage people to actively invest their assets in the system since the DeFi solutions have still not been tested.