2020: The Year of DeFi Token Development
The decentralized finance or ‘DeFi’ sector has gained immense popularity in 2020. The DeFi tokens introduce the concept of an ‘Initial DeFi Offering’ — and move investors to fast-growing DeFi token development to generate a new source of revenue.
How does Decentralized Finance Work?
Decentralized Finance or DeFi, is an open finance format that typifies the unification of decentralized technologies (like the blockchain) and traditional banking systems. In simple words, the main objective of a DeFi system is to provide substitutes for existing financial services in terms of loans, insurance, savings, asset trading, and a lot more.
Decentralized Finance projects are largely dependent on decentralized applications (Dapps) built on the Ethereum blockchain, and to understand its capabilities, the concept of Dapps must be thoroughly understood.
How important is a DeFi Platform?
The importance of DeFi in the evolution of financial systems cannot be overlooked. This open finance platform offers huge prospects for the growth of global economies, and since 2019, it has been considered one of the most significant and rapid advancements in the crypto world by experts.
As per a recent report, the amount of cryptocurrency locked in DeFi protocols has reached to $11 billion.
Reasons why DeFi Platform Development is in Huge Demand
1) The DeFi ecosystem removes the intermediaries
Decentralized Finance has replaced traditional intermediaries from the banking platform with smart contracts that make low-cost, guaranteed transactions without any third party involvement. This is a remarkable innovation that has seismic implications for the future of finance.
2) Market development is fuelled by rapid innovation
Powered by protocols that didn’t exist a few years ago, the total value and number of DeFi projects — such as DeFi currency development, DeFi exchange development, DeFi wallet development, and more — has risen dramatically in recent months. It seems like new DeFi projects are launching daily.
The sustained pace of innovation in the DeFi space will bring new opportunities and benefits for crypto users, further driving the market.
3) DeFi has plenty of room for growth
DeFi still has a long way to go, but its next step is crystal clear. We can simply look at the CeFi, or centralized finance, for guidance. In the CeFi crypto world, the market is primarily driven by trading-focused cryptocurrency trading platforms.
The reason is: In emerging markets, the crypto trading platforms that capture most users will eventually rise to the top, fuelled by network effects that increase the platform’s value for each user that it adds, which in turn allures even more users.
To Sum Up
We are aware of the fact that not all DeFi projects will be successful, but one thing is for sure: tough competition in a saturated market will eventually produce ambitious and strong protocols that are battle-tested and ready for wider audiences.
If you are also planning to develop your DeFi project- whether it could be DeFi token development, DeFi exchange and wallet development, DeFi crypto banking development, DeFi insurance system development, or more, Antier Solutions can help. Our blockchain engineers have real-world experience in developing robust, secure, and user-friendly Decentralized Finance projects.
Schedule an obligation-free call with our experts to share your business needs.
