Square in the race for DeFi finance

Square CEO Jack Dorsey said on Twitter that Square is “focused on building an open developer platform with the sole goal of simplifying the creation of non-custodial, permissionless, decentralized financial services.” or DeFi, are those that do not rely on centralized authorities like banks, but instead use blockchain-based smart contracts, predominantly Ethereum, to execute transactions. Dorsey explained that the team is committed to building the structure in a transparent way that includes an “open roadmap, as well as open and open source development.” The activities will be led by Mike Brock, formerly responsible for Cash App’s strategic initiatives. Also Dorsey, later explained that: “The technology has always been a story of decentralization. From print, to the Internet, to bitcoin, technology has the power to distribute power to the masses and unleashing the human potential for good, and I am convinced that this is the next step ”. DeFi applications allow for more easily accessible, efficient and relatively low-cost financial transactions. These types of platforms work similarly to traditional banks and financial services companies but offer significantly higher returns than traditional financial products. But, just like cryptocurrencies in general, DeFi sometimes has a more pronounced exposure to risk with regards to regulatory uncertainty, asset volatility, and the technology itself. Since there are no banks or other third party companies that facilitate transactions, there is in fact no form of insurance on the funds through which transactions are carried out. The current estimated value of funds locked in contracts related to DeFi technologies, however, currently amounts to $ 55.21 billion according to DeFi Pulse. In this same direction, the Harmony blockchain has recently opened registrations for a hackathon. , which kicks off next month, with over $ 1 million in funding and awards for attendees. Also on Twitter, Harmony stated that the hackathon will be aimed at creating a sort of bridge between traditional finance and decentralized finance through challenges on the categories of social wallets and keyless security, trustless cross-chain solutions and cross-border transactions with fintech integrations: ” We want to push more and more traditional finance players to contribute to DeFi ”.