Ethereum (ETH / USD) is an open-source platform, with a decentralized programming language (which differentiates it from other blockchains), uses a protocol and a currency whose token is called Ether and which was created to finance the project, then becoming one of the most stable cryptocurrencies on the market, as we have had the opportunity to analyze on other occasions.

What is DeFi?

DeFi (Decentralized Finance), is the evolution of what is known as FinTech, and its purpose is to offer a series of services based on a decentralized architecture. It is a concept created in 2019, in order to name those financial initiatives or projects with open source, without permits and with decentralized architecture, which is governed and executed in a decentralized and public way.

Demand for DeFi

The number of new users who have started using it has generated that the rates for GAS in the second-largest Blockchain in the market have experienced new records in their prices, which has posed a problem, especially for retail users. This situation has made decentralized finance, which initially considered the inclusion of the weak in the financial system, have become inaccessible to those who cannot pay such high fees.

Is there any chance to see any DeFi apps outside of Ethereum?

It must be taken into account that this initiative had its origin in Ethereum, due to the capacity of the network at the level of its programming, and beyond that, it has to do with the ecosystem of the developers plus the existing tools, to in order to create a layer of interconnectable applications.

Ethereum goes beyond its own network and includes the developers and the tools they bring. DeFi is not believed to remain indefinitely on the Ethereum Blockchain as many networks are trying to develop products within the DeFi ecosystem, such as Tron, EOS, to name just a few. The problem is that many of these networks do not have the developers who do have Ethereum.

Ethereum will stay on top of the DeFi

Everything indicates that Ethereum will remain at the top for longer as the main DeFi network, although there is a possibility that in the short term we will see other networks developing decentralized finance, trying to join to this new way of managing financial companies and take advantage of these benefits (which are exclusive to Ethereum so far).

What do you think about this topic? Do you know of any other application that could be given to DeFi beyond the Ethereum blockchain?

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Image by vjcombajn via Pixabay.com under creative commons license.


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