DeFi News
Coinbullet acts as your premium source for the latest insights, updates, and news about all things Decentralized Finance (DeFi). The emergence of cryptocurrencies starting with Bitcoin (BTC) opened our minds to encrypted funds. Blockchain technology allows us to encrypt value and transfer that value transparently and securely. While the Bitcoin network introduced this revolutionary idea, the Ethereum network helped us take it one step further.
With the arrival of the Ethereum network, we saw how the introduction of smart contracts help us establish trustless and automated transactions. Using smart contracts, the blockchain was able to deploy agreements without the presence of a third party. Now the network could do more than just receive and send value. This gave rise to Decentralized Finance and Decentralized exchanges.
Borrowing, lending, and trading value in a direct peer-to-peer (P2P) environment allowed users on the blockchain to do more. With smart contracts regulating fairness and transparency, all funds were accounted for immutably meaning users were free to participate if they chose to. Now, options such as yield farming, liquidity pools, and P2P trading were easy to accommodate, bringing a boom to the DeFi sector.
As more users flocked to the network to participate in governance, lending, and providing liquidity to earn in returns, other blockchains also began to accommodate DeFi into their ecosystems. Cryptocurrencies don’t have a minimum requirement to be held like certain financial services offered by traditional finance (TradFi) models. Banks may need users to provide certain assets or meet set requirements, but on the blockchain these restrictions are absent, meaning more users can participate in its offerings.
The DeFi sector saw billions of funds entering the industry thereby encouraging more users to join and participate in its services. Presently, DeFi is not as popular as the GameFi or SocialFi sector but could make a huge comeback once regulations for cryptocurrencies are made clearer.
With more traditional financial institutions accepting and adopting crypto assets into their products and services, it is only a matter of time that DeFi will also be assimilated into the traditional financial space as well. Stay tuned to Coinbullet to get the latest scoop on DeFi news.