2.5 minute read
- The craze of DeFi is growing rapidly throughout the crypto space and has been over the course of this year.
- Whereas bitcoin is the blockchain and cryptocurrency that everyone knows by now, Ethereum is the one that many people are actually utilising.
The craze of DeFi is growing rapidly throughout the crypto space and has been over the course of this year.
Whereas bitcoin is the blockchain and cryptocurrency that everyone knows by now, Ethereum is the one that many people are actually utilising. Given that Ethereum was the first to bring in a blockchain system that could also facilitate all sorts of “decentralised applications“, it has paved the way for numerous use cases for blockchain that bitcoin’s doesn’t allow for.
When it comes to DeFi applications, Ethereum is particularly powerful when it comes to building them on its network. If you look at all of the Ethereum and WETH activity on the network, it shows us that more transactions are occurring on decentralised platforms than centralised platforms.
Specifically, $300 million worth of this activity is sent to decentralised finance applications and platforms on a day-to-day basis. This is against the $156 million that has been sent to centralised exchanges.
One of the many decentralised platforms that is built on Ethereum is uniswap. Here, users are able to trade cryptocurrency without the need of a third-party to get involved and have been described as by its founder, Hayden Adams, to be an immutable smart contract. Essentially, this means that it cannot be changed by a party unilaterally.
It’s an immutable smart contract on Ethereum. I have no ability to turn it off— Hayden Adams 🦄 (@haydenzadams) October 7, 2020
If you’re talking about frontends there are ~50 independent ones
Plenty of volume is on-chain and doesn’t go through any frontend
I could try tweeting “can everyone please stop trading” though
Also Bitcoiners who loudly claim truly decentralized projects are centralized just bc they run on Ethereum are pretty damaging to the ideals they claim to support.— Hayden Adams 🦄 (@haydenzadams) October 7, 2020
Currently, uniswap is dominating the DeFi industry. This comes up with more than 70% of its daily deposits to decentralised finance applications going into it.
Due to the network effects, many people believe that bitcoin will inevitably become a monopoly and as a result, people with this mindset without building any other project or cryptocurrency is unethical and pointless, essentially. Within the industry, these kinds of people are called bitcoin maximalists. One bitcoin maximalist, Tone Vays talked about uniswap on Twitter saying that he had never heard of it saying:
Are you a parody account or something?— Hayden Adams 🦄 (@haydenzadams) October 8, 2020
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