[theamk]

How many people start their day and think: oh man, I have such a hard problem of "creating an on-chain marketplace with a sub-1000 line smart contract", I wish there were a product to solve this for me?

If you want to show that blockchains are applicable to real world, you don't want to talk about implementation, but about UX. For example, you are a business and need money. Your choices are banks, VCs, and one of those distributed landing / borrowing platforms. For each, how many money can you expect to get? Under what (effective, averaged) interest rate? Whom do you need to conivince? Do you need to provide any documentation? Can you use your existing assets as collateral?

An answer to this question will make a much more convincing argument in the long term usefulness of DeFi.

[chrisco255]

Here's the benefits:

Uncensorable. Permissionless. Democratic. 100% Availability (Ethereum has 100% uptime for 7 years). No $GME rug pulls like what we saw earlier this year. No Great Financial Crisis due to opaque liabilities (everything is traceable, auditable, open source, solvent, collateralized). Non-custodial. Yield generation. Programmable capital management.

It provides superior capital access and coordination mechanisms for not just first world humans, who also see a benefit, but for all of internet-connected humanity. It provides access to a $2.4 trillion and rapidly growing economy.

If you are a business and you need money in crypto and you don't live in a hostile jurisdiction like North Korea, Iran, or the United States, you can raise money on-chain. You can create a token with any emissions schedule, staking mechanics, profit sharing mechanisms, on-chain royalties, or whatever you can imagine as a programmer. And even if you're not a programmer, you can lean on tools that help to do that.

[greyface-]

> No $GME rug pulls like what we saw earlier this year.

Not true. https://en.wikipedia.org/wiki/Ethereum#The_DAO_event

Just like $GME, we have a handful of well-connected actors overriding the rules that typically govern the system, in response to a valid but unusual outcome that they don't like personally.

[chrisco255]

The Ethereum DAO event wasn't a rug pull. It was a bug.

There was a fork, which is a wonderful feature of blockchains. The original fork with the DAO hack still in place still exists: https://ethereumclassic.org/

Use that if you like. But clearly the community as a whole decided to repair the damage and move on. A fork like that would be too costly to pull off today. In addition, the maturity and growth of audit firms such as OpenZeppelin, have led to more secure DAOs, etc.

But by all means, use ETC if purism matters to you. Crypto is a free, open source movement.

[greyface-]

$GME wasn't a rug pull. It was a market maker making a market.

There was a suspension of buys, which is a wonderful feature of retail brokerages. The security is still purchasable today, so no one was permanently harmed.

Clearly, the industry as a whole decided to repair the damage done by retail investors and move on. A naked short like that would be too costly to pull off today. In addition, many investors have learned from the experience.

But by all means, reject the comparison.

[theamk]

All of those are true only if you stay on-chain, once you touch the real world things get much messier. Coinbase had outages. The number of coins in your account is safe, but their buying power is fluctuating much more than any old-school securities. Instead of "opaque liabilities" you have bugs in the contract. And the currencies are only solvent as long as there are buyers and media interest.

Also, I couldn't help to notice that you have ignored my questions -- how will the non-blockchain businesses use it? If a bakery needs some money to get a new bread machine because old one broke, do you really expect them to create a new token and adverize it all over the internet?

[kall]

Quick answer to a possibly rhetorical question: You cannot get money from these lenders as a business, unless you have already created a crypto token as part of it.