In the world of Decentralized Finance (DeFi), the industry has been growing rapidly since the beginning of 2020. Despite the coronavirus pandemic, the amount of investment and new projects launching in the space has shown there is continued interest and growth.
The world of DeFi is still in its nascent form, with Ethereum powering the majority of new projects. Ethereum 2.0 is the beacon of hope in the DeFi world, as it promises to bring increased scalability, improved security and lower energy costs to the space. Ethereum 2.0 is set to launch later in 2020 and will be an exciting time for all DeFi fanatics.
Currently, the majority of DeFi projects are built on the Ethereum blockchain and involve the use of decentralized lending, borrowing, and trading of tokens. Since it’s launch in early 2016, the Ethereum network has seen tremendous growth and is now used to power over a thousand different type of decentralized applications. This has been made possible by the development of many different protocols and tools designed to build upon the existing infrastructure of the Ethereum network.
The rising interest and growth of the DeFi space is undeniable, yet there are still numerous hurdles that will need to be overcome before DeFi investments become mainstream. Many of the existing protocols are still too complex for the average user and there is still a lack of trust and regulation in the space. In order to attract more mainstream users and ensure the safety of their investments it is critical that the DeFi space move towards a more mainstream and easier to use model.
DeFi is an incredibly exciting field in the world of blockchain and cryptocurrency and is sure to see continued growth in the coming years. Despite the current challenges, Ethereum 2.0 is the new beacon of hope and will likely be the catalyst for the DeFi space to reach the heights of mainstream market.
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