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Top DeFi Trends for 2021

 

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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 -

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.

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.

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.

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 

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