On Friday, Gartner announced the latest blockchain and web3 hype cycle. A related blog post claims that cryptocurrency trading is the only killer app so far. Not everyone agrees, of course, and the individual elements of the hype cycle are discussed in multiple LinkedIn posts. 
“Consumer apps such as NFT games and commerce are driving innovation as companies gradually begin to realize business value. Risks are actively managed to quickly reach a turning point in hiring. “I will,” Avivah Litan said in a blog post. And then, “With the exception of cryptocurrency trading, we haven’t seen killer use cases yet. They need to jump over current applications in terms of making our lives better.”
Perhaps the blog post was meant to inspire discussion.
Monkey photography may be a hot topic in NFTs, but this technology has a huge impact on almost every type of intellectual property, from art to music to games. And NFTs support the future of brand loyalty. Keep in mind that OpenSea alone traded over $ 30 billion annually. However, to be fair to Litan, many of the numbers were money received through crypto transactions. NFTs are promising, but still a niche.
It is possible to discuss all the items in the cycle. But one comment on the blog post is more noteworthy.
Do you blame CeFi for cryptocurrency crashes?
The cryptocurrency crash was mainly due to “corrupt players who lied to customers and lenders”, but the DeFi protocol did not crash. There is no doubt that it was an accident waiting for a centralized crypto lender to occur with weak risk management. But what really saved DeFi is that (so far) it’s primarily granting mortgages and automated smart contracts protect the collateral. In contrast, CeFi loans were deficient in collateral.
And DeFi is starting to move to less integrated loans.
Also, the elucidation of many of CeFi’s problems (with one big exception) began with DeFi. The collapse of the algorithm’s stablecoin TerraUSD (anchor DeFi protocol provided a 20% rate) was an important trigger, sweeping over more than $ 50 billion in one fell swoop. As a result, Three Arrows Capital (3AC) stopped working, 3AC brought down Voyager Digital, and there was a major default for Genesis lending and more. Not only that, Terra Stablecoin de-pegging began with an unbalanced Curve DeFi pool.
The “DeFi good, CeFi bad” message is too simple and is worth clarifying as people can blindly trust DeFi. Like they were Terra / Luna. DeFi is very promising, but it carries significant risks. This increases as DeFi becomes more complex and less transparent.