Advertisement

cryptoware banner

Should More people look to DeFi in a more serious manner? 

Should More people look to DeFi in a more serious manner? 

Quick take

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.

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:

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

You can share this post!

Advertisement