Editor's Note: This article comes fromChatting with Xiaozha (ID: xiaonazha88), reprinted by Odaily with authorization.

Chang Jia said: If we summarize the past blockchain into three waves: 2009-2014 is digital currency, 2014-2019 is digital asset ICO, and 2020-future is DeFi.

Editor's Note: This article comes from

Chatting with Xiaozha (ID: xiaonazha88)

Chatting with Xiaozha (ID: xiaonazha88)

, reprinted by Odaily with authorization.

Chang Jia said: If we summarize the past blockchain into three waves: 2009-2014 is digital currency, 2014-2019 is digital asset ICO, and 2020-future is DeFi.

Bitcoin is indispensable in these three stages, and Bitcoin acts as three functions of payment, fundraising, and cross-chain mortgage in the three stages.

After more than two years, DeFi has finally become popular. This is a bit like ICO at the beginning, but it is also tepid. For example, how many people understand the crowdfunding of Ethereum, and how many people join in frantically. Later, there is a wealth effect. , attracted a group of people to enter. Of course, there are a lot of bubbles in it, but it will greatly promote the development and popularization of blockchain technology.

Someone asked, what is the difference between ICO and DeFi? I said that ICO is a money printing machine, and DeFi is a magic machine that turns 1 yuan into 10 yuan.

Write a white paper, come up with a story, and then go to Ethereum to issue a coin, and through ICO financing, a project with a market value of hundreds of millions is born. Is there anything more profitable than this? Yes, that is the money printing machine.

DeFi is financial alchemy and magic. It can turn 1 yuan into 10 yuan. You can see that the market value of DeFi broke through 2 billion US dollars on June 9, broke through 3 billion US dollars on June 18, and now breaks through 64 One hundred million U.S. dollars.

The above is the difference between ICO and DeFi, so what is the relationship between them? ICO is financing, and DeFi is financial leverage to allow better circulation of assets. What do these two belong to? Programmable Finance.

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Looking back on the blockchain 2.0 era, ICO is the appetizer and DeFi is the main course

Blockchain development is divided into three stages, which are often referred to as blockchain 1.0/2.0/3.0.

Blockchain 1.0, the era of programmable currency, represented by Bitcoin, has built a new, decentralized digital payment system, which has strongly impacted the traditional financial system.

Blockchain 3.0, the era of programmable society, goes beyond the financial field and expands the scope of application to the entire society. Blockchain technology may become a bottom-level protocol for the "Internet of Everything", improving the operating efficiency of the entire social system.

From the perspective of blockchain development stage, ICO is the financing application of the blockchain 2.0 programmable financial era, and DeFi is the arsenal of the programmable financial era.

From this perspective, don’t you think that ICO is like an appetizer, and DeFi is more like a main course? And this is very consistent with the idea that the future of Changjia is DeFi.

Looking at it this way, it means that there is a lot of room for DeFi in the future, so who else has a similar view? Meng Yan

Meng Yan said that he judged DeFi last June as one of the most important applications of the blockchain. In February of this year, it was believed that DeFi would become the earliest successful application among the most important applications of the blockchain, not one of them.

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DeFi's fortune path: Born abroad, flourishing in China

From some blows in DeFi in March this year, the total asset value plummeted from the peak of 1.2 billion US dollars to about 500 million US dollars.

Now it has exceeded 6.4 billion, showing exponential growth. Digital assets are pouring into DeFi in large quantities and rapidly. It can basically be attributed to Compound, where borrowing is mining, which instantly detonated the market.

The DeFi projects seen on the market now, such as Make, Compound, Aave, Bancor, Uniswap, dYdX, Synthetix, etc., are basically foreign projects, and there are few domestic projects, but I personally think that China will play DeFi more smoothly. . Why do you say that?

…… 

Many things in the blockchain ecology are passed from abroad to China, and the country makes them bigger and stronger, such as:

1) The top mining machine manufacturers such as Bitmain, Jianan Zhizhi, and MicroBT are all domestic;

2) The top mining pools such as Biyin and Yuchi are also domestic;

3) Several influential exchanges such as Binance, Huobi, and OKEX account for a large share in China;

Next, it is estimated that many domestic DeFi projects will appear.

Of course, the current DeFi is a "thing" in the purely encrypted digital currency circle. All kinds of tricks, cranes dance for nine days, my heart is flying, but my feet don't touch the ground, and it has nothing to do with the real world economy. Many of its various innovations and gameplays are zero-sum games.

The point where DeFi needs to break through is to get out of the circle again. COMP makes DeFi out of the circle, so that blockchain personnel start to pay attention to DeFi, and pay more attention to it. To be honest, most of them are because of the money-making effect.

Any ideal is fuel for stories and bubbles. Only making money is what attracts the masses to pay attention to him.

So what will be the development trend of the development of DeFi products?

The innovation path of DeFi products, starting from handling

In the second stage, there was a breakthrough in the native mode.

What kind of evolution will DeFi experience? Here is a quote from Michael Anderson's "How DeFi Evolved: Four Stages".

The birth of the first stage is more an imitation of the traditional model.

At the moment of the "big bang", traditional financial products are transplanted to the blockchain, such as over-collateralized lending businesses such as Maker and Compound.

Think of the dot-com boom of the mid-1990s: Products like email and raw search mimicked similar services offline.

In the second stage, there was a breakthrough in the native mode.

At the moment of breakthrough, realize that decentralization is an advantage, and try to develop crypto-native financial products, such as the rise of synthetic and DEX.

For example, in the Internet in the 1990s, the rise of companies such as Yahoo and Netscape provided native applications for Internet users.

The third stage returns to traditional products to seek higher scale.

"Traditional" products that leverage the potential of decentralization gain increasing advantages beyond the limitations of previous chains and ledgers. At this stage, low-mortgage consumer insurance and bill factoring will be potential products.