Yes, and understanding what the protocol does and what the risks are to themselves may be more to ask of a lot of people even that work with computers on a daily basis. “Banking the unbanked” in some remote village in a war-torn country might in practice necessitate also getting the know-how out to the people there, which is quite a bit more complicated than just getting them plugged in.
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One drawback relating to regulation is as the western nations slide further towards socialism, the endless spending and debt creation has to be reconciled. So taxation of everything will be the hammer of choice and our involvement and risk to obtain gains will be targeted by the thieving sticky fingers of the commies.
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A drawback for most people would be that they have to learn all about blockchain in order to understand how to secure their assets. It’s not the same as just giving your money to the bank and hoping that they and the regulators have your best interest in mind and will take care of securing your assets.
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I agree with you. I also believe that many people can’t be bothered to invest time and energy to learn about that.
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Beware of projects not KYC insured and the team is doxxed. Rugpulls are a nasty bit
hi everyone,
Just getting started with the courses. While looking into liquidity pools, I’m curious to know, given an address, how can one determine if it is a smart contract or a liquidity pool programmatically?
Thanks!
One drawback of defi is the risk of smart contract bugs.
This requires safety precautions to be taken, such as, auditing contract code to verify that the protocol is secure.
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A huge drawback is security. Since users are in complete control of their assets, this also means they are in charge of their own security. When uneducated on security and its importance, users can easily make one wrong move and lose everything they have in the wallet they are using. With all the scams happening today in crypto, security and protection of personal assets should be at the top of everyone’s priority list.
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One needs to pay more attention to signing the transactions, otherwise, there’s no going back if the money has been sent already, for e.g., to the wrong destination.
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Potential instability to the hosting blockchain.
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Drawback
- Unfriendly UI and hard-to-understand jargon.
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As many people worldwide that use this technology, I’m surprised more countries are not at least trying to learn this instead of automatically labeling it as bad. the stock market has crashed more fortunes than crypto and will continue to do so because the oligarch’s control and manipulate it to their benefit.
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“Caveat emptor” and “the Devil is in the Details” should always be observed even in a trusted system.
honestly, I’d rather go trustless than trust some these “corporate yahoos” to secure my funds.
Drawbacks
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The main population doesn’t have access to simple steps to understand defi and how it works.
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Simple mistakes can be made and money could be lost forever.
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Back to point number 1. Regulations on crypto are coming out and the general public/ house representatives don’t understand it so it has potential to harm new innovation.
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Another drawback is DeFi can be seen as complicated to the average person with no financial or tech knowledge.
I agree that DeFi is still young… It’s still at it’s infancy stages - that’s why it’s good to get in early, educate yourself to gain a competitive edge.
I would definitely use DeFi pub knowledge. Besides of a clearer understanding of this ecosystem, I feel that would lead to some useful ideas… that could benefit us all.
Come up with one more drawback and share it in the forum:
Uncertainty - when the blockchain that is hosting the DeFi project is instable, it will automatically influence the DeFi project
Concerns of Liquidity: because the DeFi market is not nearly as big [TVL] as the traditional financial systems, people might not have the courage to use it
No one to complain our own. mistakes