Ex-Goldman Sachs exec believes that his decentralized clearing house can rescue DeFi from oblivion

Revolution Populi has released layer one of a blockchain solution that the founding team believes could be used as a clearinghouse for crypto and traditional financial transactions.

Revolution Populi calls its consensus rdPOS, where 'r' stands for random.

Rob Rosenthal, the company's CEO who spent 19 years at Goldman Sachs prior to starting this latest venture.

Rosenthal believes that their solution can save DeFi from "Certain oblivion".

"What a clearinghouse is, is two things. One, simple record keeping instrument and two, importantly, a guarantee fund. On top of that you can have layer two that can utilize this layer one for atomic record keeping."

"You can make a deposit and earn yield as trades settle, and that's real yield, by the way. That's like real yield, meaning you earn yield. Once the trade settles and the settlement of that trade carries with it some small transaction costs and transaction fees, so fees are actually generated. And depositors get a piece of those fees."

The inherent mistrust of public chains largely stems from two factors, the perceived association with illicit activity and concerns about preserving privacy.

Rosenthal opined that this was part of the problem - you cannot marry the two concepts a decentralized ledger with centralization: "The 'C' in CBDC stands for Central, the 'D' in DLT stands for distributed or decentralized. You can't marry those two, at least not internally."

In his opinion, banks do not have an issue with a decentralized "Layer one" per se, but they do have a problem with the "Layer one" being owned by the government or by a competitor.

Rosenthal said that although their solution is going to be a decentralized public blockchain, some data will need to remain private.