Competition in Crypto currency
From this point of our daily life a biggest competition in crypto currency is already in its peak of there battle to each of every kind.
From the moment of Bitcoin $BTC born on year 2009 where it release in the public by the anonymous Satoshi Nakamoto ( until now there is no clear source who is this individual or group. he/she/their are still hidden in public eyes) the surge of the crypto currency and block chain technology is unstoppable growing and developing in every corner of the world.
It took almost 5 years before the Bitcoin $BTC gain a foothold in the World finance ecosystem. and it followed by alot of altcoin in the start of year 2015, where the Ethereum that founded by Vitalik is starting to spread using the ERC20 coin policy. and from that alot of cryptocurrency is from BEP20 and ERC20 get started to develop there own agenda and paving there own path in crypto space.
Each of crypto and blockchain had there own unique style of improving there own crypto space and value in the market such as some crypto is relying in system of others while others is giving a rewards and some other is used to be in governance for there own system apps. Even there is difference on each there it is one character on the crypto currency that all of them is similar and that is each of crypto currency is alive inside of the computer and internet connection. this was called as blockchain technology. and as of now alot of powerful and biggest nation had already started to develop there own blockchain technology which is called CBDC Central Bank Development Currency. so the competition of private and public organization is starting to develop thru this crypto currency and blockchain system.
A war between the fiat currency and cryptocurrency was started since the crypto currency gain a foothold on the space of economics in world. where there Some organization choose to use the crypto currency in there International transaction. so the crypto is advancing thru borders which is hard for the fiat to use since each currency had only value on each own local government.
but as long we talk the integrity and trust some user still preferred to use the fiat currency or the traditional money. both centralized and decentralized finance have the same goal: to allow people to utilize cryptocurrency in a wide range of financial services. What differentiates the two is how they do it. In centralized finance, the asset class and processes are managed by people or companies. In decentralized finance, they’re managed by a set of smart protocols. The question is: would you trust a company or a set of codes with your crypto assets?
and in early years of 2020 the government of other country started to develop there own CBDC which is relying in CeFI system to create a space for there own Fiat currency in the space of crypto. in this way they can gain some momentum against the private organization that spreading the DeFi system.
Centralized finance is a type of financial practice within the cryptocurrency sphere where users can earn interest and get loans on their digital assets such as Bitcoin, Ethereum, USD Coins like USDT & USDC, and so on, through a centralized platform. The platform can be managed by a person, a group of people, and usually within the jurisdiction of a financial technology (fintech) company.
In centralized finance, the assets and services offered are managed by people, and users need to come to terms with that. It’s about trusting the people or organization behind the platform. Also, CeFi platforms like Hodlnaut are custodial, which means we take user deposits and manage the accrual and payment of interests.
Although DeFi gets a lot of spotlight due to its innovative and avant-garde approach, centralized finance has quite a few benefits worth to make the headlines. CeFi tends to offer a more holistic approach and focus on maximizing the value of cryptocurrencies. In general, CeFi platforms are more flexible and convenient compared to DeFi; you can do fiat to crypto conversions and cross-chain exchange. You’ll also get higher interest rates when depositing assets on CeFi platforms. Furthermore, users have access to customer service provided by individuals or companies managing the funds in case of issues or troubles with the services.
Decentralized finance is a financial service that utilizes a set of smart contracts and algorithms to execute its services. The contracts are automated agreements that don’t require intermediaries or banks. They run on the Ethereum network and use blockchain technology. DeFi platforms like Compound Finance are non-custodial, which means users deposit their funds to be managed by smart contracts. No company or individual has access to the funds.
Some of the most significant advantages of DeFi are trustless and permissionless. You don’t need to worry about whether the platform will run as intended or not because you can verify the DeFi services by auditing the codes. Besides, you can also use external tools to check if a transaction was executed correctly. With CeFi platforms, you would always need to do a Know-Your-Customer (KYC) verification to access the services.
In DeFi, you don’t need to do a KYC or any kind of identity verification and can start using the services anonymously. Designed to be freely accessible to all parties without discrimination or limits, one of the downsides of DeFi is that it can be misused by the wrong parties to conduct illegal transactions and frauds, even in financing terrorism-related activities.
It’s safe to say that the differences between centralized and decentralized finance are subtle. It all comes down to the question of whether to trust people to manage the crypto funds ethically or to rely on a smart system that is permissionless and open to all. Either way, the emergence of both services signal the positive outlook of cryptocurrencies and how it’ll continue to disrupt the way we define and use money in the modern world.
Due to this heavy competition of crypto currency some token and crypto made there aggressiveness development and system where they use the entertainment category to improve there own value in the crypto space. Some blockchain made it as NFT Collection only while other use the gaming system to attract some investor. by adding the play to earn system in NFT games some of token is gain a popularity and started to rise in the world of crypto. the biggest example of this is the $AXS of the Axie infinity which is been famous on the middle of pandemic due to its massive earning for just playing the games. most of people in asian started to invest on this and gain earning in year 2019 to 2021.
Axie Infinity was release on March 2018 as a NFT gaming sites and due to the people looking for income in the middle of pandemic thousands of people started to explore this game where they offer a play to earn policy. this company become top and most popular NFT games in year 2019 until 2021. thats why its value on the market is skyrocketing which is from original value of 1 $AXS is equal only of 0.1457$ from there release on march 2018 get increase upto its ATH of $159.76 at November 2021.
and from this moment alot of NFT games is starting to release and following the AXIE INFINITY such as GALA games, Pegaxy, and many more which is the born of another new kind of crypto currency that was based on NFT and blockchain.
So What do you think Who will be the winner for this competition?