DeFi's Opportunities and Dangers | HackerNoon

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DeFi's Opportunities and Dangers | HackerNoon
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'DeFi's Opportunities and Dangers' by FuturisticLawy1 defi bitcoin

of income trends in the Netherlands shows that the boomer generation stands out both in terms of income and wealth. More than 2/3 of total net wealth was held by households with a main-income earner older than 55 years, and 42% was held by households over the age of 65 - excluding pension assets. The current generation of 35–45-year-olds in the Netherlands owns on average EUR 100,000 less than the current generation of 45–55-year-olds when they were the same age.

The blockchain movement represents a rebellion against all powerful, centralized institutions - whether banks or Big Tech monoliths - by emphasizing values that are more in tune with the digital age. The advantages DeFi holds over TradFi are the same as those Web 3.0 holds over Web 2.0: decentralized/centralized, open source/proprietary, permissionless/ limited access, transparent/opaque, publicly owned/privately owned.

CEXes act as intermediaries to transactions like regular banks. On the plus side, they are easy and convenient to use - at least once you are fully onboarded and have gone through the rather tedious KYC processes. CEXes oversight of customer data is "against the spirit of crypto", but also necessary to comply with financial regulations.

Hot wallets are digital wallets. They can either be custodial or non-custodial depending on whether you have ownership of your. Your private key is a string of numbers and letters, a kind of password that you use to sign off on transactions from your wallet. If you hold your crypto on a CEX such as Coinbase or Binance, your wallet is custodial, since you hand over the custody of your private keys to the exchange.

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