By Hassan Mehmood (Saudi Arabia)
A blog post has reported that Ethereum is going to create a revolutionary open financing system in order to fight with failing policies, currency manipulation, and shadow banking system.
The blog post is written by Mason Nystrom the content marketer at the Ethereum incubator ConsenSys on 5th Dec 2019. The title of this blog post is “2019 Was The Year of DeFi (and Why 2020 Will be Too)”. In this blog post, Mason Nystrom has explained how Ethereum developers are going to create an open financial system with new finance assets and new protocols.
While explaining the objectives and parameters of decentralized finance, Mason said in the blog post that new solutions launched by ETH developers have made decentralized finance the best movement of this year.
Nystrom stated in the blog post:
The current financial system is comprised of walled gardens with limited transferability or two-way access. Where interoperability is possible, it’s controlled by middlemen and rent-seekers. Open finance is defined by platforms that can work together with a degree of transparency with functions that complement one another.
Mason also discussed the properties of the Open Finance system and also the criteria for the open finance economy in the blog post. He said that the open financial system is interoperable, programmable, and composable.
Also read:Ethereum developers are creating this new revolutionary open financial system with new financial assets and new protocols. In the blog post, Mason Nystrom mentioned some of the protocols that are providing their services for this purpose.
Among these protocols is Crypto lender Dharma that will provide an open platform to people for earning interest on their crypto. The Compound is another protocol that is an autonomous protocol. Dai is a decentralized stablecoin that is created by MakerDAO’s protocol.
Mason Nystrom cited these protocols in the blog post:
These various protocols showcase the power of composability: 1)Dharma provides an open platform by 2) leveraging Compound’s open protocol, 3) which predominantly lends and borrows the dai stablecoin created by MakerDAO’s protocol, 4) all on top of Ethereum. Boom.
However, Nystrom said that the purpose of introducing the new financial system does not mean that the old financial system will be thrown out. Rather, the company is integrating the open financial system with the existing finance system.
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