DeFi is Ethereum’s True Purpose – BlockchainUnlocked

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DeFi (Decentralized Finance) is set to unify fragmented ecosystems, which will unlock billions in idle crypto assets.

Blockchains as money

Before 2017, blockchains game-changing application were crypto currencies, forms of money which were free of sovereign and political economic interests, censorship resistant, and unencumbered with inflation.

However, up to date, application of crypto currencies as a medium of exchange has been limited as cryptos are volatile and unstable. Plus, few places accept cryptocurrencies as payment, although the number is growing quickly.

DeFi as Blockchains Killer Application and Purpose

DeFi has the potential to disrupt conventional banking by getting rid of costly intermediaries. Although adoption and rise wont happen overnight, there are millions of crypto currency investors worldwide collectively holding over $200 billion in idle crypto assets.

The market is still young but in only over 24 months, capital in DeFi smart contracts has grown from $0 to about $700 million.

Drivers behind DeFi include MakerDAO, Synthetix, Compound.Finance.

What’s Coming Next

While a robust DeFi ecosystem is forming, the biggest issue is that most platforms only cater to Ethereum.

Anytime soon, an application shall unite the fragmented crypto currency markets, unlocking billions of potential.

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