{"id":248470,"date":"2020-01-31T06:13:14","date_gmt":"2020-01-31T11:13:14","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=248470"},"modified":"2023-07-12T10:45:48","modified_gmt":"2023-07-12T10:45:48","slug":"vitalik-buterin-takes-issue-with-mashables-description-of-defi","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/vitalik-buterin-takes-issue-with-mashables-description-of-defi","title":{"rendered":"Vitalik Buterin Takes Issue with Mashable\u2019s Description of DeFi\u00a0"},"content":{"rendered":"

Decentralized finance (DeFi), like many other developments in the cryptocurrency space, will need a little bit of explaining before it finally makes sense to someone who isn\u2019t overly familiar with it. Also, most concepts there have been several who have misrepresented DeFi to the public.\u00a0<\/span><\/p>\n

A \u201cCringeworthy\u201d Misconception<\/span><\/h2>\n

One of such misrepresentations came in the form of an article from Mashable, which made DeFi look like a simple \u201cget rich quick scheme.\u201d Titled, \u2018I took out a loan with cryptocurrency and didn\u2019t sign a thing.\u2019 The article attempts to explain DeFi, how it works, and the steps to getting a loan. However, most of its premises were wrong.\u00a0<\/span><\/p>\n

Ethereum co-founder Vitalik Buterin explained in a\u00a0<\/span>tweet<\/span><\/a>\u00a0earlier today that the definitions and explanations used by the author of the piece were \u201ccringeworthy,\u201d adding a picture that opines the author referencing a \u201csmart contract CDP where the collateral is a highly liquid asset as a \u2018loan.\u2019\u201d\u00a0<\/span><\/p>\n

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I know I'm in the minority on this issue, but every time I see an article like https:\/\/t.co\/2i7ywE7GqJ<\/a> saying defi gives you the ability to "take out loans with no paperwork" I still cringe… pic.twitter.com\/irIW8j3eAe<\/a><\/p>\n

— vitalik.eth (@VitalikButerin) January 30, 2020<\/a><\/p><\/blockquote>\n