The real benefits of decentralized finance

94
4
The real benefits of decentralized finance

Crypto's year of the meltdown of centralized financial institutions has been 2022, with exhibit A - the multi-billion dollar collapse of FTX - on full display.

As the disaster of digital asset exchange FTX - combined with the fall of other centralized institutions Celsius and Terra earlier this year - has taught us how not to build and operate crypto solutions. The industry needs to learn how to put this annus horribilis behind it and discover the real benefits of decentralized finance.

Real value has nothing to do with money.

The blockchain industry's real value should not be measured in anything as volatile as crypto money. The value lies in the positive contribution to the world, prioritizing the right values. What is being built and how can it help people?

It's crucial to build with the community in keeping with the decentralized ethos of DeFi.

To be a successful entrepreneur, you must be willing to deal with the unexpected.

I have learned that the best way to prepare for the ups and downs of your startup journey is to have all of your bases covered, and the best way to do that is to choose partners who have a diverse set of strengths. No one can do everything alone. Especially when building something big, you need people who you can trust to see where you may have blind spots.

When choosing whom to work with, aim to employ individuals who have a variety of skill sets that compliment your own. If you have the right teammates, you won't be unprepared. When building something important, people are going to notice. If you have a vision that inspires you, you may eventually have the chance to sell what you're building.

This is often a decision between money and creative control. If money is the only goal you want, go ahead and take the offer. However, if you care more about experience, innovation and knowledge, it's important to think twice before giving up creative control over what you've built.

Any startup journey has its harrowing moments, especially in DeFi. Even if things suddenly turn dire, they can turn positive just as quickly. Time is a valuable measure of value, which is why it is so important. The same asset can differ from one another in different circumstances, and it can be overvalued in a bull market and undervalued in a bear market. In short, three months can be the difference between failure and becoming a blue chip token.

In disaster moments, you know what your chances are. When bear markets strike, there is nothing to distract you from determining the real value of what you're building. To create or invest in something that you believe provides real value to the world, don't be influenced by market performance. In addition, trust your own judgments on what is and isn't valuable.

At the beginning of my career, I was very concerned about making'safe' choices - I only placed bets when I knew I would win. I failed to take action on my boldest ideas. Today, as an established entrepreneur, I have learned to make decisions based on whether something is interesting enough for me to really give my all to it.

I learned that being an innovator is not just about what you create - it's also about what you learn in the process. The more passionate you are about something, the more likely it is that you'll gain valuable knowledge and experience while working on it, and so, the more likely it is that you'll work harder. If you have something you're passionate about, you'll want to devote yourself to it. This creates a 'virtuous circle' of dedicated work and better results.

You will likely find that your passion for and curiosity about what you're creating are the keys to your inspiration when you're beginning a career or venture. However, when your creations begin to blossom, your sense of responsibility will take a larger impact on what you're doing. While this sense of responsibility can seem overwhelming from the outside, I have found that it is the natural evolution of the initial passion needed to make your dreams a reality.