Difference between revisions of "Decentralized Finance"
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| − | *New York Times article<ref>Ephrat Livni, ''For Rules in Technology, the Challenge is to Balance Code and Law'' (2021-11-23) https://www.nytimes.com/2021/11/23/business/dealbook/cryptocurrency-code-law-technology.html</ref>< | + | *New York Times article<ref>Ephrat Livni, ''For Rules in Technology, the Challenge is to Balance Code and Law'' (2021-11-23) https://www.nytimes.com/2021/11/23/business/dealbook/cryptocurrency-code-law-technology.html</ref><blockquote>The idea that "code is law," observed in a 1999 book by Harvard University's Lawrence Lessig, has been embraced by the cryptocurrency industry, with some firms contending code can be a better arbitrator than traditional regulators. However, issues have emerged in the decentralized finance (DeFi) sector, with hackers this summer overriding smart contract instructions to steal $600 million from the Poly Network, which lets users transfer cryptocurrencies across blockchain networks. DeFi platforms typically are established as Decentralized Autonomous Organizations governed democratically by a community of users who vote with crypto tokens. Said Lessig, "We need a more sophisticated approach, with technologists and lawyers sitting next to behavioral psychologists and economists," to define parameters to code social values into programs.</blockquote> |
==References== | ==References== | ||
[[Category: Glossary]] | [[Category: Glossary]] | ||
Revision as of 09:46, 24 November 2021
Full Title or Meme
Decentralized Finance or DeFI is a complete misnomer since all finance is already decentralized in that there is not a single central authority. What most people mean by DeFI is Blockchain currency or Anarchy in the financial sector of the economy.
Context
- New York Times article[1]
The idea that "code is law," observed in a 1999 book by Harvard University's Lawrence Lessig, has been embraced by the cryptocurrency industry, with some firms contending code can be a better arbitrator than traditional regulators. However, issues have emerged in the decentralized finance (DeFi) sector, with hackers this summer overriding smart contract instructions to steal $600 million from the Poly Network, which lets users transfer cryptocurrencies across blockchain networks. DeFi platforms typically are established as Decentralized Autonomous Organizations governed democratically by a community of users who vote with crypto tokens. Said Lessig, "We need a more sophisticated approach, with technologists and lawyers sitting next to behavioral psychologists and economists," to define parameters to code social values into programs.
References
- ↑ Ephrat Livni, For Rules in Technology, the Challenge is to Balance Code and Law (2021-11-23) https://www.nytimes.com/2021/11/23/business/dealbook/cryptocurrency-code-law-technology.html
