The world of DeFi is exploding in 2020. Decentralized finance, or DeFi, is technology that powers the cryptocurrency revolution. In DeFi, users participate in an open, trustless, secure financial network that runs on blockchain technology. With the rise of DeFi, people have the ability to access financial services like loans, trading, and investing all without going through banks or financial institutions.
The revolutionary technology of DeFi has taken markets by storm as people are now able to access services usually associated with banking, such as trading and loans, without relying on traditional banks or financial institutions. It’s a peer-to-peer system that relies on smart contracts and uses blockchain technology to take part in financial transactions.
The decentralized finance sector has blossomed in 2020, with some analysts predicting it will become the largest cryptocurrency sector in short order. The growing number of DeFi projects, protocols, and tools available, means more and more people are taking notice. From stablecoin platforms to Bitcoin-backed loans, DeFi has created a platform for users to access fintech services quickly and securely.
In 2020, decentralized finance has not just been about decentralized exchanges and protocols, but also about other related services like decentralized derivatives and lending. There are projects that are aiming to tokenize real-world assets, such as property and equity. We’ve even seen DeFi applications being used to secure digital identities, allowing people to make use of various services without the need for a centralized organization.
The current trend of decentralized finance is an exciting one and has huge potential to transform the way we approach financial transactions. It is inspiring to see the growing number of innovative projects, protocols and tools being rolled out that make it easier and more secure for people to access financial services.
As we move into 2021, the DeFi sector looks set to continue its exponential growth. It will be interesting to see how the decentralized finance sector evolves and the impact it will have on the financial system. Keep an eye on the DeFi space and follow us for more detailed insight into the sector.