The Promise and Challenges of Decentralized Finance (DeFi)
Introduction to Decentralized Finance (DeFi) Decentralized Finance, or DeFi, is transforming the blockchain landscape by providing a platform for financial applications that operate independently of traditional financial intermediaries. DeFi is not only broadening access to financial services, especially for those previously excluded, but is also pioneering the creation of a comprehensive capital market built on blockchain technology. Although still in its infancy, the implications for individual and institutional adoption are profound. Ethereum at the Forefront of DeFi The majority of DeFi applications are built on Ethereum, which dominates the landscape due to its advanced decentralization, programmatic flexibility, and robust developer community. Ethereum’s role is so significant that the scalability and usability improvements in its network directly influence DeFi’s adoption and growth. Current State of DeFi: An Overview As of late 2019, here's a snapshot of DeFi's standi...