What TradFi Really Wants From Blockchain
According to a16z, TradFi uses blockchain for operational efficiency, not decentralization.
1Blockchain's Role in TradFi
Traditional financial institutions are adopting blockchain technology not for decentralization but to reduce operational costs and increase transaction speed. This approach positions the technology as a business tool.
2Selective Adoption
Institutions are adopting only those elements of DeFi that align with their regulatory and operational needs, transforming blockchain-based finance into something distinct from both TradFi and DeFi.
3Programmable Financial Infrastructure
Institutions are leveraging blockchain to develop programmable financial infrastructure that meets institutional needs while utilizing the technology's core features.
4Example Applications
JPMorgan's permissioned blockchain for institutional deposits and BlackRock and Franklin Templeton's tokenized money market funds illustrate how blockchain is enhancing traditional financial services.
5Avoiding DeFi Principles
While benefiting from blockchain's programmability and transparency, institutions are steering clear of core DeFi principles like open access and trustless execution.
6The Future of Blockchain
Blockchain technology holds significant potential beyond traditional finance. While institutional adoption is crucial, it does not define the industry's full potential.
Original article: CryptoPotato — Geleneksel Finansın Blockchain’den Beklentileri