Top DeFi Trends for 2021

You steal the limelight and you steal the market share. Against the industry predictions earlier last year, DeFi grew like gangbusters and reignited the lost glory of crypto finance. Today, the market has propelled by 20x which in itself is a rare milestone. Trade experts who had written off the possibility of a parallel currency are now foreseeing 2021 as another landmark year.

Here’s a quick run-through of the top trends that’ll further elevate the acceptance of DeFi in the consumer markets -

Trends #1

The rise of Proof-of-Staking (PoS) as a consensus mechanism

Proof-of-Work (PoW) is basically a consensus algorithm used in a blockchain network for transaction confirmation and the introduction of new blocks. In a PoW consensus blockchain, the network is supported by miners who compete against each other to confirm the transactions. Once the transactions are completed, the miners receive an incentive.

Ethereum, the second-biggest cryptocurrency in terms of the total market cap also initiated its move to PoS in 2020. In December 2020, Ethereum launched its Beacon chain to mark its ETH 2.0. Currently, the lion’s share of DeFi protocols is built on top of Ethereum. Once the transition of Ethereum to ETH 2.0 is completed, the Decentralized finance development will deliver highly scalable solutions and would attract more users.

Trend #2

Rise of Sharding

Mass adoption of blockchain is not far but it has to overcome some lofty hurdles before this becomes a reality. One of the major roadblocks is the scalability issue. To achieve maximum decentralization, each node of the blockchain network stores all the states. Thus, each node stores information like transaction history, account balances, and more.

Trend#3

Greater opportunities for investors

The total value locked in DeFi is close to $25.2 billion. A year back, DeFi protocols had only $831 million locked in. The growth of DeFi and DeFi software development in 2020 has been remarkable and undoubtedly, this is going to be the next big thing in the financial world.

Decentralization of finance is happening right now!

With these trends, DeFi platform development is edging closer to bring more traditional financial tools to the blockchain. Schedule a live Demo with our experts to understand the potential better.

Read full at https://www.antiersolutions.com

Comments

How To Build DeFi Yielding Platform that Guarantees Returns for the Owner?

Crypto finance has matured. It is no more ‘that alternative source’ of making more money. Rather, the mainstream consumption has positioned it alongside the traditional fiat markets. In all honesty, Decentralized Finance (DeFi) protocols have had a significant role in moving the trends from ‘somewhat decentralized’ to ‘total decentralized’ transition of the Blockchain finance products. Understanding Yield Farming — Staking cryptos to make more cryptos To put it simply, it is a practice of investors staking (farming) their crypto assets in a farm (pool) and earning interests (yield) in return. Unlike traditional staking, Yield Farming generates returns faster and can be implemented with less number of investors. Therefore, many upcoming DeFi protocols are written around Yield Framing to attract greater participation. Ideally, a DeFi yielding platform uses open-source and permission-free decentralized apps that provides complete control to the users. This means, no third-party entities o...

A Brief Summary of Crypto Tokens and Reasons to Hire Token Development Services | Antier Solutions

Crypto has been making its presence felt for more than a while now. It all started with the release of Bitcoin with the transactions taking place on a blockchain. Of course, no innovation comes alone, and this case was no exception. New crypto exchanges were es t ablished to allow users to trade the coins and tokens with other users. The crypto market runs similar to the stock market though it is much more volatile in nature. With the success of crypto coins, multinational organizations and young entrepreneurs are busy with crypto coin development . Businesses are launching new crypto coins that can be traded on crypto exchanges. Let us see a little more about the different types of crypto coins. Types of Crypto Coins As we mentioned above, there are three basic types of crypto coins- Bitcoin - it is the first crypto coin in the market Built on Bitcoin blockchain. Altcoins - these are created as an alternative to Bitcoin and are traded similarly. Ex: Ripple, Tether, etc. Tokens -...

How to Create a Crypto Exchange | Start Your Own Cryptocurrency Exchange | How to Create a Cryptocurrency Exchange Website | Antier Solutions

The number of cryptocurrencies has grown to over 2,300 through 2019, according to CoinMarketCap, and the market has witnessed an incredible increase in the number of crypto investors over the past decade. Earlier, people preferred Bitcoin mining to earn rewards, however, the reduction in block rewards has shifted people’s interest to cryptocurrency exchange development. Businesses and entrepreneurs globally are choosing to create a cryptocurrency exchange platform to enter the crypto market and rake in huge profits. Binance, one of the leading crypto exchange platforms, hit a massive $1 Billion mark in cumulative profit, out of which $183.5 Million was made in Q3 of 2019 alone. The stats reveal that setting up a crypto exchange is a huge opportunity that can be capitalized by crypto enthusiasts looking to start a crypto exchange for revenue generation. If you are planning to make your own cryptocurrency exchange — be it from ground zero or white-label exchange software — ...

Antier Solutions

Search This Blog