Every time a centralized exchange is hacked, the industry holds its breath. Critics flood social media and mainstream news outlets, pointing the finger at crypto technology. They suggest that it isn't safe, that it's anonymous, scary even.
At the same time, the developers, traders, and investors who understand the importance of self-custody look on with frustration. These hacks can be avoided. People can be protected. And arguably, crypto can and should be far safer than traditional financial systems.
One of the main roadblocks in building a truly secure and reliable system is the danger of giving up custody of our digital assets. When a user forfeits their custody to a third-party platform, such as a centralized exchange or a hot wallet, they give away the most powerful aspects of blockchain's security system.
R0AR is building a decentralized finance ecosystem that won't ask users to give up custody; the opposite, it will encourage them to demand self-custody. By prioritizing self-custody, R0AR aims to empower users and create a more secure and trustworthy decentralized finance industry.
Self-Custody: An Increasingly Pivotal Aspect of Crypto Technology
ByBit, one of the most well-known centralized exchanges on the market, was recently hacked. Over $1.5 billion worth of ETH was drained from the platform's wallets. An astounding amount of money that reminded the industry of the FTX debacle that pushed the market to the depths of the 2022 bear market.
While there are clear differences between what happened to ByBit compared to FTX, there's also a crucial similarity, which is their connection to the lack of self-custody. Both incidents reflect the potential dangers of handing over control of our crypto tokens and digital collectibles to centralized organizations, even if the organization in question is a respected exchange.
So, what's the difference between self-custody and non-custodial? Self-custody means that you, and only you, hold the private keys that give you access to your digital assets. No one else can access or control your funds. Non-custodial, on the other hand, means that a third party holds your private keys and has the ability to control your assets.
For example, if you hold your crypto on a centralized exchange, you are giving up custody of your assets to that exchange. They control your private keys and can, in theory, freeze your account, confiscate your funds, or even lose them due to a security breach. If you hold your crypto in a self-custody wallet, you are in complete control of your assets. No one else can access them without your permission.
Every hack should push the industry further towards self-custody as it is in the best interest of users and the industry's potential to go fully mainstream. By promoting self-custody, we can create a more secure and trustworthy environment for everyone involved in the crypto space.
R0AR's Commitment To Self-Custody
Our view on self-custody has been clear since day one. It cannot be compromised. Satoshi's plans, laid out in the Bitcoin whitepaper, made it clear that ownership is one of the main aspects of crypto that separates it from the traditional finance world. True ownership is a pivotal use case, and it's arguably the reason that so many people believe in the technology's capacity to improve the global economy.
The R0AR DeFi ecosystem is being built with self-custody tools. This means that users will always have complete control over their assets, regardless of which services they use on the platform.
A prime example is the xCHANGE, which will offer DeFi features such as yield farming without requiring users to hand over their private keys, i.e., custody. This allows users to participate in DeFi activities while maintaining full control over their assets.
Plans for an educational platform will also be launched within R0AR that will educate new users on the importance of custody. This will help to ensure that all users are aware of the risks associated with non-custodial solutions and can make informed decisions about how to manage their assets.
As the R0AR ecosystem grows, the community will be at its core, and they will almost certainly advocate for self-custody every step of the way. This community-driven approach ensures that self-custody remains a central focus of the R0AR platform.
Self-Custody Focused DeFi Plan Raises over $4 Million
Demand for self-custody is out there. While some centralized actors might want to convince users that handing over private keys is safe, many crypto trading experts still firmly believe in the power of self-custody.
The success of the R0AR token presale is a testament to the demand for a secure, decentralized, and user-friendly DeFi project. Over $4.1 million has been raised by the presale, primarily from the community without involving VCs. This shows that even when many platforms are shifting toward centralization, the crypto community continues to believe in the ideals set out by Satoshi in the aftermath of the 2008 financial crisis.
The Executive R0AR Society (ERS) NFT collection has also shown the power of the R0AR vision, as over 5,000 NFTs have been minted through the OpenSea launchpad. This further demonstrates the community's support for a DeFi ecosystem that prioritizes self-custody.
Voice your opinion on self-custody and play a role in making DeFi safer, popular and equitable by joining the R0AR community.
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