Author Topic: Stablecoins are propelling Decentralized Finance to the next stage  (Read 6 times)

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Former Bitcoin core code contributor Jeff Garzik says stablecoins are propelling Decentralized Finance (DeFi) to the next stage.

Stablecoins are built on top of a cryptocurrency currency like Bitcoin, and this layering function is what makes the stablecoin safe and stable. “You have unstable assets like MET or BTC as collateral and, say you have a $150 worth of unstable collateral parked in a smart contract, then that will issue $100 worth of stable token tied to the U.S. dollar. What that has done is unlocked a whole new universe, because before Bitcoin, Ethereum, etc. prices [were] volatile.”

Despite the relative “success and survivability” of stablecoins, Garzik said by and large the blockchain industry is still in its early stages – ‘Layer 1’ days, he calls them.

“10 years in, we're still in the ‘I'm building a blockchain’ days,” he said. “DeFi is the first ‘I'm building on top of blockchain’ kind of use case. It is built on that lower layer infrastructure plumbing that the average users should not have to think about or know about—it should be there and it should work.”

He says the industry is a couple layers away from making blockchain products safe for the average user.

Ultimately, Garzik wants to make blockchain easier to use for everyone, because complex user experiences make platforms less secure. Still, it's not about dumbing blockchain down, he insists.

“ts securifying it up. It's making a secure user experience, which is one where the user doesn't have to see this incomprehensible hash and understand what that is.” It shouldn't be that hard, he said.

“You should just swipe a credit card, pay bitcoin, and receive a service. Simple user experiences and simple outcomes, that's going to bring more people into the space, which generates more freedom. And so, ultimately, it's about making it easier for this rough-edged, originally techie-focused, nerd-focused, kind of hard to use technology usable by the average person.”

more info: https://www.forbes.com/sites/justinoconnell/2019/10/07/former-bitcoin-core-developer-jeff-garzik-on-defi-stablecoins--bitcoin/