The Importance of Native Rights in DeFi
By Adam Knuckey, Co-Founder and COO of Dolomite
When it comes to technology, everything is held together by patches and workarounds. This is true not only for traditional tech but also for the world of cryptocurrency. The underlying technology that powers blockchain networks has been patched countless times to support new use cases and functionalities that were not originally envisioned.
For example, non-fungible tokens (NFTs) were never intended to be traded on Bitcoin, yet developers found a way to make it happen. Similarly, the concept of decentralized finance (DeFi) has transformed tokens into powerful tools capable of creating a ripple effect across various financial systems.
However, the implementation of these innovative ideas often runs into challenges when it comes to enforcing them on-chain. This is where the issue of native rights becomes crucial. Without the ability to enforce these rights, DeFi cannot reach its full potential as a transformative technology in the world of finance.
In order to shape the future of finance and fully leverage the capabilities of DeFi, it is essential to move away from legacy software and embrace native rights. Native rights refer to the inherent rights and functionalities that are built directly into the blockchain network itself.
By incorporating native rights into DeFi protocols, developers can ensure that innovative concepts such as perpetual creator royalties, restaking, and decentralized perpetual swaps can be effectively implemented and enforced on-chain.
Hot Take: Embracing Native Rights for a Transformed Future
In conclusion, native rights play a critical role in unlocking the full potential of DeFi. By embracing these inherent rights and functionalities within blockchain networks, developers can push the boundaries of what is possible in the world of finance. Moving away from legacy software and leveraging native rights allows for the seamless implementation of innovative ideas and ensures that DeFi can truly transform the way we interact with and manage our finances. The future of finance lies in embracing native rights and harnessing the power of decentralized technologies.
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