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cryptocurrency May 3, 2021

M. Cuban: DeFi on ETH Delivers Financial Instruments Better than Banks 2

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  • Mark Cuban believes Ethereum smart contracts are better at delivering digital items than alternatives available
  • He concludes that DeFi on Ethereum is better in delivering financial instruments than banks
  • Smart contracts used in DeFi allow transactions to be automated, trustless and almost instant

The owner of the Dallas Mavericks and Shark Tank investor, Mark Cuban, has shared his thoughts on Ethereum and the impact of its smart contracts, and DeFi, on the global financial ecosystem.

Ethereum’s Smart Contracts are ‘Better at Delivering Digital Items’

According to Mr. Cuban, Ethereum’s smart contracts are better at delivering digital items than any alternative in the market right now. He also added that the ability of Ethereum to do so makes it a viable currency and trading mechanism for digital items.

His exact commentary on Ethereum can be found below.

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Eth Smart Contracts are better, cheaper, faster at authenticating/buying/selling/delivering digital items than alternatives available. This makes it a viable currency and trading mechanism for all things digital. That’s powerful and will grow as applications are added

DeFi on Ethereum is Better at Delivering Financial Instruments than Banks

Mr. Cuban went on to explain that the Decentralized finance industry on Ethereum has succeeded at enabling financial transactions and instruments better than banks.

According to his analysis, the automated nature and almost instant settlement on Ethereum makes DeFi more efficient than traditional banks in offering financial services. His exact analysis of Ethereum and the traditional banking system can be found below.

Eth Smart Contracts for De-Fi are better at enabling depositing/saving/trading of financial instruments than banks. One is automated and trustless and near immediate. The other is dependent on buildings full of people who add cost and friction to the same transactions

Crypto Assets Have Value

Mark Cuban went on to conclude that digital assets have value due to their ability to handle transactions better than traditional financial systems and in a trustless manner. Therefore, anyone who has doubts about the future of crypto assets should look at their real-life use cases.