Andre Cronje, co-founder of Fantom, known as the “Father of DeFi,” published an article yesterday (28) entitled Why DeFi? ”, which elaborates on the role of DeFi and its impact on finance by exploring the evolution process of modern finance and the concept of decentralized finance. (Preface: V God's "DeFi development limited theory" is criticized, Uniswap CEO: Raising the price of ETH is not Vitalik's responsibility) Recent comments by Ethereum founder Vitalik Buterin regarding the importance of DeFi (decentralized finance) to the Ethereum ecosystem have sparked heated discussions on social media, with Vitalik arguing that the DeFi market, while great, is fundamentally affected limitation, it is not possible to push encryption technology to another innovation of 10~100 times adoption. Perhaps hoping to respond to Vitalik’s views, Andre Cronje, co-founder of Fantom, known as the “Father of DeFi,” published an article yesterday (28) entitled Why DeFi? ”, which clarifies the role of DeFi and its impact on finance by exploring the evolution process of modern finance and the concept of decentralized finance. Traditional finance is opaque and exclusive First, Andre, starting from the earliest barter model, explains that money as a standardized “IOU” facilitated the birth of banks. I raise chickens, you grow wheat. I give you chicken, you give me wheat. One year, my chickens didn’t do very well, but I still needed wheat and next year I’ll give you more chickens. I owe you (IOU). Now maybe you don’t need more chickens, but your neighbor wants chickens, so you can trade the debit for something else. In its most basic form, all currencies are standardized IOUs, and anyone willing to accept them agrees that they have an established value. Eventually we started measuring everything that was priced in these IOUs. So now that I have a bunch of IOUs, I am starting to worry that I might be robbed and I need a safer place to keep the IOUs. Thus, the first bank was established (originally the church's ledger where these IOUs were stored). He argues, however, that over time, traditional finance has become increasingly opaque and exclusive, over-reliant on credit scores and relationships, which has created an impediment to everyone’s participation in financial life: the role of finance is by allowing idle assets to play role to empower individuals, however, over time, the traditional financial system has gradually become opaque and exclusive, which is overly dependent on credit scores and relationships. DeFi is a pure and scalable form of income. In contrast, Andre believes that DeFi is a fair, transparent, and inclusive financial system: it removes barriers to participation and allows anyone to participate in lending and trading. DeFi is a pure and scalable form of income driven by supply and demand without the need for intermediaries or complex regulations. The seven major industries should all be on the chain. In addition, Andre suggested that the seven largest industries in the world should be on the chain: Life insurance and health insurance Oil and natural gas Real estate retirement funds Automobiles and car sales Direct insurance Commercial banks Finally, Andre emphasized that DeFi is decentralized The cornerstone of society, has the potential to transform major industries, making them more transparent and increasing their accessibility: In the future, as key industries such as insurance, real estate, and banking gradually operate on the chain, these industries will become accessible to all, thereby promoting more equitable economic growth. DeFi is just the beginning, and we still have a lot of work to do to achieve a fully decentralized and inclusive financial system. Related reports Andre Cronje’s long article questioned Ethena (USDe): The next UST death spiral? A good opportunity to ambush FTM? Andre Cronje: Plans to create a framework for issuing and cultivating meme coins on Fantom. Andre Cronje revealed the inside story of "exiting the circle" in an interview: He never really left Fantom〈DeFi Godfather Andre Cronje: The world's 7 largest industries should be put on the chain and decentralized. Globalized finance is the future. This article was first published in BlockTempo's "DongZu DongTen - the most influential blockchain news media".