The technology giant, Google Cloud is breaking the mould by joining forces with the Web3 startup, Orderly Network with a formidable aim of mainstreaming decentralized finance (DeFi). The duo is collectively developing user-centric developer tools to lower perceived barriers that deter more extensive adoption of decentralized technology. This partnership has arisen in response to the surging interest from clients exploring blockchain workloads on Google Cloud.
On one hand, this venture could be a game-changer. With blockchain technology at the heart of the fintech revolution, there is a noticeable shift among traditional financial entities. They are beginning to acknowledge the potential of decentralized technologies as evidenced by institutions like JP Morgan actively testing various blockchain-based solutions. This indicates that more than half of the top 100 banks in 2021 have some level of involvement with decentralized technology.
However, on the other hand, problems persist. Orderly aims to balance DeFi load across on-chain and off-chain components to ascertain a balance between speed and sufficient decentralization. This division of tasks is meant to ensure operations are streamlined without compromising the inherent advantages of a decentralized system. But whether this complex allocation will manifest successfully is still in question.
In addition, security remains a significant concern. Many skeptics criticize the entry barrier and the frequent security issues that have plagued the DeFi ecosystem. One may question whether the involvement of prominent entities, such as Google Cloud and Orderly Network, will assuage these fears and manage to create a secure environment. But until then, the balancing act between the promise and reality of DeFi continues to disrupt the status quo of traditional finance.
Fundamentally, the insertion of blockchain technology into traditional financial systems sparks competition with existing solutions. Hence, for blockchain technology to be enthusiastically adopted and become mainstream, it must unequivocally outperform these current solutions. This ambitious merger will certainly play a crucial role in setting new paradigms in the DeFi landscape.
Source: Cointelegraph
