This document discusses bridging traditional finance and decentralized finance. It outlines some key differences between traditional finance (intermediaries, higher fees, gatekeepers) and decentralized finance (trustless, no intermediaries, cheaper and faster transactions). The document then provides an overview of sectors within decentralized finance on Binance Smart Chain, growth of decentralized finance, issues that still exist, and how Binance Smart Chain is helping to bridge the gap between decentralized and traditional finance through various initiatives and technical roadmaps.

1. Building Real-World solutions
Bridging DeFi and Real World Assets
Julian Tan
BSC Ecosystem Coordinator

2. TradFi vs DeFi
◆ In a Traditional Finance (Trad-Fi) setting, transactions
have to go through layers of verifications under financial
institutions who act as intermediaries due to the lack of a
“trustless” system
◆ Undesirable consequences of having a middleman:
◆ Higher fees
◆ Gatekeepers, increasing barrier to entry
◆ Extra layer of risk

3. Trustless System in DeFi
◆ “Trustless” means that you don't have to trust a
third party: a bank, a person, or any intermediary
that could operate between you and your assets.
◆ The concept of “trustlessness” is a core element of
blockchain, achieved via smart contracts.
◆ Smart contract are programs with very specific set
of procedures that once deployed no one can
change.
◆ Terms written in the smart contract will happen
without the need of third party to enforce.
◆ By cutting out middleman, transactions can now happen
cheaper and faster.

4. Sectors of DeFi
◆ On BSC, we have
nearly 1000 projects
live, serving different
part of the DeFi
ecosystem.
Source: Coin98, Aug 2021

5. Growth of DeFi

6. Zooming into key infrastructures
DeFI Applications TradFi equivalent
Stablecoin Yield Farming Savings / Fixed Deposit account
DEXs (Decentralised Exchanges) Stock / Commodity brokerage
Lending Protocols Banks loans
Collatorization of Real World Assets Mortgage facilities
DeFi applications tend to serve specific functions, mirroring and adapting from what we are
seeing in traditional finance.

7. Issues with Decentralised Finance
◆ As good as it sounds, DeFi is still in its infancy stage.
◆ Issues like smart contract vulnerabilities, and volatility
in digital assets do exist.
◆ Self Custody is another major issue as the system
requires everyone to be responsible for their own assets.

8. How BSC is helping to bridge the gap between Defi and Cefi
◆ Priority One campaign
◆ Binance Bridge
◆ Partnership with audit firms
◆ High liquidity (Binance bridge, Btokens)
◆ Defi Legos
◆ Accelerating Innovation through MVB program
◆ High performance Infrastructure

9. Tech Roadmap
● Interoperability and Composition
○ Enable bi-directional interoperability between different chains
● High Performance EVM and Infra Optimization
○ Resolving storage bottleneck and Concurrent Execution of EVM
○ Light Node support for Archive API and Write Stream
○ Faster block finality within <15 seconds
● Network Enhancements
○ Support on-chain randomizer
○ Privacy-preserving solutions
● On-chain Governance for BSC DAO

10. Learn more about BSC!
Website: https://www.binance.org
BSC Twitter: https://twitter.com/BinanceChain
BSC Telegram Community: https://t.me/BinanceDEXchange
BSC Developer Telegram Community:
https://t.me/binancechaindevs
BSC Accelerator Fund: http://bit.ly/BSC-Fund