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1/ DeFi is the killer app for crypto. When Vitalik talks about other use cases it generally misses the point that this is where product-market fit actually is. Fundamentally it comes down to three things:
2/ a. What applications can afford the expense of paying for the redundancy and security of a public network? DeFi is top of that list.
3/ b. Of those applications, which ones require an interoperability framework that leverages the advantage of an enforced standardisation of components? DeFi is top of that list.
4/ c. Of those applications, which has a Total Addressable Market in the TRILLIONS of dollars? DeFi. DeFi is top of that list.
5/ The use of public ledgers is ALWAYS going to be more expensive, per operation, than just sticking it on a database somewhere. Whatever you build on a public ledger HAS to justify the expense of using it for the value it delivers.
6/ Few applications outside of finance justify a $80 write operation, and of those, most are very low volume use cases. However, in reality, few applications outside of finance justify a $0.001 write operation. @ethereum 2.0 doesn’t solve this problem either.
7/ DeFi leverages the dual power of having universal standards for issuance (tokens), and that dApps like Aave, UniSwap and Synthetix fundamentally compliment each other. In fact, that IS the value of these networks.
8/ Value of a DeFi Ecosystem = Value of Assets Locked * (Number of DeFi Apps)^2
Obviously, that will require at least some filtering in the long tail, but the principal fundamentally is app interaction with assets drives product market for DeFi.
Obviously, that will require at least some filtering in the long tail, but the principal fundamentally is app interaction with assets drives product market for DeFi.
9/ No industry that I know of can reap SO MUCH VALUE from fundamental sharing of standards and infrastructure as DeFi can. But DeFi is currently being built on Ethereum, a place where the network is congested to a standstill and @VitalikButerin wants less DeFi.
10/ Lastly - "finance" as a total addressable market. It is the most valuable industry on earth, yet it lags well behind others in terms of technology adoption and user experience. This is the world’s opportunity to do for finance what we did for information with the internet.
/11 This is why we built @radixdlt, the first layer 1 protocol specifically built to serve DeFi. It is a problem so big and so deep and so specific that no general purpose ledger will ever do.
