The document compares traditional finance (TradFi) to decentralized finance (DeFi), describing TradFi as centralized and familiar while DeFi is distributed and less familiar. It discusses how Bitcoin has created digital scarcity and addresses the double spending problem. It also covers decentralized autonomous organizations (DAOs), smart contracts, oracles, and challenges around privacy and regulation on the blockchain. The document speculates that in the future, TradFi and DeFi could converge as blockchain technology is integrated into traditional banking infrastructure through the use of technologies like multi-party computation and oracles to connect blockchains to off-chain data and systems.
6. 6
Has created Digital
scarcity
Double Spending
Problem
Medium of exchange,
unit of account, store of
value , the definition of
money
● 21 M finite supply
● Divisible in Satoshis, the smallest unit of a
bitcoin (or 100 millionth of a bitcoin).
○ 1 satoshi = 0,00000001 bitcoins
○ 1 bitcoin = 100,000,000 satoshis
● Miners' reward block is halved as more
transactions are made
● Deflationary mechanics, but highly
speculative
Source: TESOBE
TESOBE GmbH 2021
Bitcoin - P2P “Cashless System”