Sure, there are plenty of scams in Crypto. Especially if youre hanging around all day at social media and checking new projects. Everybody is trying to get your money.
withraw of gained assests
Yes, since itās all too new, itās hard to have your old friends listening (even tho we just want to help them get familiar with something that will make their lives better, haha)
When some bug happens after doing an transaction, itās not that easy to find help (you can find it on forums, but sometimes you need to read a lot of misleading information before getting the help you need).
Because there is no protection (transfers are final, not reversible), and that there are a lot of scammers around, it is paramount to keep passwords and phrases really privy, and to fully understand how this new financial system works.
The openess of the DeFi world, which is a clear benefit, is also a drawback.
Through it you are also just a small pawn on this big open game board. The big guys, may they be whales, hedge funds, etc., use their bigger resources only in their own interest, and the smaller guys are in the danger to be the victims, as all their actions can be seen in the public blockchain.
The public image of DeFi and cryptocurrency in general. Many people donāt understand and donāt take the time to learn. As long as this is the case DeFi will stay at the fringe of finance.
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- My major fear - until now - with all DeFi technology itās linked into what makes me feel more excited with it as wellā¦ the composability aspect of it. The limitless options to do new things, to offer unimagined products and services brings together a really high uncertainty about security. The lego pieces must be really studied until a good part of mathematcally possible problems have being mapped; because itās real nice think about endless possibilities of new things but when you donāt have a preventive study about the problems that it may cause, itās really scary
I would say that this is kinda cultural tooā¦ people doesnāt like to change. People love routine because it feels safety. Thatās why i think that the first and most important step relies on education. So the first step it would be study, know about the subjectā¦ and then start to use it until you get confortable to full adopt it.
I may disagree with Josh because itās really a high learning curve to those who want to benefit of the beggining of the DeFi techā¦ those who simply want to follow the mass can simply move when itās necessary
For me the big drawback now is the lack of regulation for the moment, itās the wild west !
I think the number of scammers in the space is a problem too, there is way to many of them.
Software bugs, smart contract bugs, coin/token protocol bugs, personal security method bugs.
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Lack of regulation and regulation uncertainty are big drawbacks. Scamming is a huge drawback with DeFi and crypto. Really good answers, thank you.
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gas fee in eth network
research before invest
responsability for our own decisons
The imploding number of DeFi projects along with its forks - I think itās better to focus on having a solid DeFi concept, and making it better, than having too many projects that have the same exact use cases (like 100% forked projects)
Adoptability may be a drawback for DeFiā¦
DeFi is still young and we are yet to see it reach to the general publicā¦
Those that really benefit from DeFi are those who have been in the game for a while and know their way around different protocols! Mainstream adoption is when there will be great progressā¦ but baby steps igā¦
Another disadvantage is the case of account management! Using just one address for all transactions can be very very dangerous as it leaks privacy!
Itās good practise to generate other addresses for different things!
This is very true!
With the source code and UI of popular crypto interfaces being open source, itās very easy for bad malicious practitioners to copy the source code, add vulnerabilities in the code, make the UI fresh and attract liquidity!
Unsuspecting participants will contribute to such protocols and all of a sudden, the devs have run off with all of their tokensā¦ Itās a real problem and a lot of research has to be conducted beforehand to ensure that funds are not at risk of being stolen.
it canāt be truly decentralised and user friendly for the time being. ie ui needs to be adopted for non nerds
as we are in the early stages of Defi adoption acceptance by main stream media can be negative and misleading.
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thanks for the synopsis.
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Reduced privacy is a drawback. With centralized finance, you generally are only sharing information with the financial institution, perhaps another third-party institution responsible for a credit check, and local State actors. With DeFi, foreign State actors and other parties you might not trust may be snooping around the block chain and checking out what youāre doing.
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