May 8, 2024

BlockCentral: Bridging TradFi Tradition with DeFi Dominance

BlockCentral: Bridging TradFi Tradition with DeFi Dominance

Everyone in cryptocurrency came from somewhere in the traditional world. No one woke up 14 years ago, a fully formed adult, knowing only Bitcoin and blockchain. Many protocols in the Decentralized Finance (DeFi) space forget that and often purposefully avoid acknowledging it.

By limiting our discussion of DeFi to catchy buzzwords, we build barriers that many laypeople cannot overcome. With BlockCentral, we want to honor the traditions of long-established markets and systems we all know and leverage their understanding to help DeFi become the next great hub of passive income.

Sidebar: For those wondering, ‘TradFi’ means ‘traditional finance’—your stocks, bonds, commodities, and hedge fund types of finance. ‘DeFi,’ decentralized finance, has mostly come to mean ‘any finance activity within the crypto space, regardless of how centralized or decentralized it really is.’

Population Density

DeFi can be described as a small, highly dense city. There is a lot of activity, things change quickly, and new shiny destinations get built in the blink of an eye. We’re packing into trendy clubs and restaurants, seeing familiar faces, and enjoying the comradery and sometimes the gains. We share battle scars from previous rugs and speculate on the next big trend.

But stop and look around. The same people, in the same collection of destinations, all talking in the same casual yet technical vernacular. At the same time, you wonder, “Why don’t more people realize how good we have it?” Then the light bulb goes off. We are passionate, but we are few. We need to grow the borders of DeFi City.


Building Bridges

In the ad agency industry, executives tell their copywriters not to create content above a 4th-grade reading level. They know that is the most effective level for maximum comprehension for the public. That’s not a jab at the general intelligence of the world, but it is a reminder that we need to do more in DeFi to change how we communicate outside of our tribes.

If we want mass adoption, we must speak in a way the masses will understand. We can begin this process by spending more time translating what we are building into terms and ideas that they understand. DeFi isn’t alien technology. It was built by humans, for humans. We can talk effectively about space with almost everyone if we choose the right ideas and words.


In the simplest terms, using traditional finance as a starting point, BlockCentral would be akin to a crypto hedge fund. From there, we can equate that to the DeFi Fund, which is unique to BlockCentral. This means the assets within the fund are exclusively crypto-based instead of the bonds, equities, securities, etc. found in a traditional hedge fund.

If you’re ‘crypto curious’ and want to get involved in this space, the concept of a DeFi Fund will feel far more accessible than a ‘wrapped leveraged liquidity yield farm.’ I just made that up, but it sounds real to us, and traditional finance brains would shut off reading those five words.

However, there are two sides to a bridge. We can’t shift fully towards the traditional world without giving DeFi a chance to migrate as well. It is a compromise, after all. Phase 1 of BlockCentral is still DeFi-heavy, with staking and yield farming. However, simplifying these basic concepts makes the psychological barrier to entry more attainable.


Future of DeFi

It is our job as creators to make our services and innovations as appealing as possible to as many people as possible. Widen your user base, grow your borders, and meet people where they are. The BlockCentral team believes DeFi will evolve to resemble the TradFi world. Especially as the two worlds continue to merge and coalesce, but with some key differences.

There will be more innovation in DeFi, where new instruments and earning opportunities present themselves more quickly. This flexibility breeds opportunity. DeFi presents better earning potential than almost anything TradFi can offer. Because of this, DeFi will dominate the near future of retail and small institutional finance as long as we can provide them with a clear and easy-to-understand on-ramp.

BlockCentral is pushing that process forward, and with the help of other great partners, a new paradigm will be established to permanently bridge TradFi tradition and DeFi dominance for the good of both financial worlds.

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BlockCentral Inc. is a Panama-based company focused on advancing blockchain adoption and education. All information presented here is not financial advice and should be considered the starting point of your own due diligence.