Andre Cronje: Fairness and Transparency at the Heart of DeFi

Andre Cronje explores the rationale behind Decentralized Finance (DeFi) and its importance in his latest article.Cronje explains the historical origins of finance, from the original bartering to IOUs to the formation of the banking system. The essence of finance is to put idle assets to productive use to help individuals and businesses achieve their goals. However, as society has evolved and the credit system has become more complex, traditional finance has become increasingly exclusive, relying solely on credit scores to determine loan eligibility.

Cronje points out that DeFi removes the discrimination and injustice of traditional finance through open and transparent rules where everyone can participate equally.DeFi requires no intermediaries, there are no hidden transactions, and all rules are public. Whether it's a loan or a transaction, users know exactly whether they qualify or not.At the heart of DeFi is fairness, transparency and democratized participation, which is why it is a cornerstone of the global economy.

Cronje also emphasized that while there may be perverse incentives and unsustainable revenue models in the DeFi space, these have not detracted from DeFi's potential as a tool for financial innovation.DeFi provides opportunities for all to participate and facilitates interconnectivity across major industries. He believes that DeFi is a core building block for building a decentralized society, which in the future will encompass major industries such as insurance, oil, real estate, pensions, car sales, direct insurance and commercial banking, until all of them are transparent and open on the chain.