My Journey as a SheFi Scholar: Navigating Web3 as a UX Designer …

My Journey as a SheFi Scholar: Navigating Web3 as a UX Designer 2/3

July 12th, 2024

In my first post, I shared the beginning of my journey as a SheFi scholar, diving into the foundational concepts of blockchain and Web3 design. This is the second installment in a three-part series documenting my experiences and learnings. Today, I want to tell you about an unexpected challenge I faced after ETHDenver and how it opened my eyes to the intricate world of DeFi, stablecoins, DEXs, and Web3 social platforms.

First this now that!?

Picture this: Your car gets towed, and you urgently need to retrieve it from the pound before the fees start piling up. The only funds you have available are in cryptocurrency.

You have to convert your crypto into real cash—fast! But navigating this process for the first time was far from straightforward. It meant transferring crypto from my Metamask wallet to an exchange, then converting it to fiat currency. Luckily, I found some AI tools that walked me through each step. Without them, I would have been completely lost and frustrated. This experience really underscored how crucial AI tools are in simplifying complex tasks.

Tell me how…

However, the whole ordeal took a few days and tested my patience and nerves. And this was coming from someone who believes in blockchain technology. Imagine how overwhelming it would be for a skeptic or someone new to the crypto world. Putting myself in the user’s shoes as a designer gave me valuable insights into a situation many of us face. We expect handling money to be as quick and seamless as using PayPal, Venmo, or Cash App. Yet, converting crypto to fiat is easier said than done due to the ongoing development challenges in this space. Progress is being made, but it requires diverse experiences and perspectives to truly improve.

Understanding DeFi and Its Importance

DeFi, or decentralized finance, is a different take on the traditional finance world. Imagine having global, permissionless financial services at your fingertips—accessible to anyone with an internet connection. That’s DeFi in a nutshell. Here are a few key components:

Stablecoins: These are cryptocurrencies designed to maintain a stable value by being pegged to external assets like the US dollar.
Lending and Borrowing: Platforms where you can earn interest on your crypto or take out loans without a middleman.
Decentralized Exchanges (DEXs): Peer-to-peer trading platforms that operate without a central authority.

DeFi is all about breaking down the barriers of traditional banking and making financial services more inclusive and accessible.

The Role of Stablecoins in DeFi

Stablecoins are a cornerstone of the DeFi ecosystem, providing stability in the often volatile crypto market. They maintain a stable value by being pegged to external assets like the US dollar. There are three main types of stablecoins:

Fiat-Collateralized: Backed by fiat currencies.
Crypto-Collateralized: Backed by other cryptocurrencies.
Algorithmic: Use algorithms to manage supply and maintain their peg.

Stablecoins enable various financial activities, from payments to savings and lending, offering a stable medium of exchange, store of value, and unit of account.

Navigating Decentralized Exchanges (DEXs)

Decentralized exchanges (DEXs) are crucial in the DeFi world. They let you trade cryptocurrencies directly with other users without a central authority, using smart contracts on the blockchain. DEXs like Uniswap allow you to swap tokens by selecting the tokens, entering the amounts, and executing the swap. While DEXs offer benefits like lower fees and enhanced security, they also come with challenges, such as managing private keys and limited customer support. But the autonomy and control they provide are truly game-changing.

Web3 social platforms are set to revolutionize the way we interact online. Unlike Web2 platforms, which often exploit user data and centralize control, Web3 platforms use blockchain technology to offer decentralized, permissionless, and user-governed networks. Key benefits include:

Data Ownership: Users own their content and data.
Decentralization: Eliminates single points of failure, enhancing security and reliability.
Fair Monetization: Creators receive a fair share of the revenue generated from their content.

For example, Lens Protocol allows users to own their social graph and monetize their content, giving them greater control and new opportunities.

Let’s Wrap this up…

Navigating the world of DeFi and Web3 can be scary, but it’s incredibly rewarding. After attending Devconnect, I’ve been involved in a few experiences that have helped me understand this ecosystem a bit better. Understanding and leveraging DeFi, stablecoins, DEXs, and Web3 social platforms can empower you to take control of your financial and social interactions on the blockchain.