TechFlow news — On December 9, Ethereum investor DCinvestor posted on social media stating that on-chain lending is the most revolutionary application in blockchain, arguably the most significant innovation in finance since the establishment of central banking systems in the 17th and 18th centuries. However, most people have yet to recognize its importance.
Balaji Srinivasan, former Chief Technology Officer of Coinbase, commented that on-chain lending will replace central banks with decentralized banking services, allowing interest rates to be determined by the market rather than fiat-based regulations. Although some current P2P lending platforms still use centralized order books, decentralized P2P lending order books already exist—marking a shift in interest rate pricing from central bank dominance to peer-to-peer market determination.
According to Token Terminal data, the outstanding loan balance in the on-chain lending market has nearly reached $20 billion, approaching an all-time high.
