We all have heard about the term DeFi quite a lot recently. They are getting really popular, and the reason for that is the promises they bring. DeFi stands for decentralized finance and is a form of the financial system where no central authority is involved. For example, in a traditional finance system, if you send money to your friend, the transaction gets validated by a bank. But in the case of DeFi, since there is no central system and the network validates the transaction. DeFi makes sure that the power doesn’t lie in the hand of one person or organization. And due to this advantage of DeFi Harmony plans to merge the merge decentralized and traditional finance system.
Decentralized and traditional finance
“More power to the people” as we slowly move towards the world of DeFi. In order to make the merger possible, Harmony has launched a hackathon that is now open for registration. The event will begin in August and will have over $1 million in funding and prizes for the participants and winners. Harmony clearly stated that their goal with this event is to bridge the gap between DeFi and the old banking system.
There are many challenges to this that are expected to be solved in the hackathon. These include four categories that are trustless bridges, cross-chain, keyless security, and social wallets. There are a lot of Defi tokens that are really good and have worked on many aspects, but this is going to be different. Harmony thinks that most of the people who build DeFi have not come from a traditional finance background. Therefore, the company says that they are trying to bring more traditional finance to DeFi, which will distinguish itself from other tokens.
Talking about the event, the registration is going to close on 15th August and will be conducted over the next 6 weeks. SushiSwaps main developer Omakase will be present as one of the main judges of the event. Along with him, we will have several other developers and sponsors present as part of the hackathon. This event is going to be big and is expected to have a lot of participation from the community.
What are your thoughts on the hackathon event? And will you be interested in helping merge decentralized and traditional finance? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.