02 / 24 / 21
Top DeFi projects, what’s in the works
The blockchain industry is on its boom for the last 10 years and the primary reason happens to be its decentralized nature. It is worth noticing that during this time, there have been several offshoots or rather use cases on the very concept introduced by blockchain technology. One of the most hyped industries in this regard is called DeFi and it experienced exponential growth in the last year alone. Basically, it attempts to overhaul how traditional banking, trading, investing, and all other financial models work.
In this article, we will explore the top DeFi projects which have played a vital role in benefitting the industry as a whole.
Being one of the most popular and unique initiatives in the market, Uniswap has grown tremendously. It allows people to exchange ERC20 tokens in a purely decentralized environment.
It is important to realize that most of the crypto exchanges that we have heard of are centralized as they hold the keys of your wallets. Moreover, they even share personal data with governments for regulatory purposes. This is where Uniswap comes into play and establishes a trustless environment for the entire Ethereum-based crypto market.
Given its popularity and utility from the security perspective, it could very soon overtake Coinbase (i.e. one of the most widely used and centralized crypto exchanges)
This platform has gained a lot of reputation because of its renowned founders and a massive team. The reason why it’s quite practical and defines the future direction of the blockchain industry is that it streamlines the communication between multiple chains.
Currently, the industry is quite segregated and it’s not proving quite useful for enterprise-grade users. Therefore, with its highly generic nature, Polkadot enables public and private blockchain networks to share data while ensuring that scalability is not halted.
In 2020, they also announced their token, called UNI, which has gained traction very quickly and it is worth noticing that since 60% of the tokens are reserved for UNI users, the platform truly advocates decentralization.
Unlike other projects in this list, Chainlink is a rather sophisticated one as it attempts to decentralized the oracle network. Apart from directly solving a real-world problem, it addresses the issues faced by smart contracts as well.
Precisely, it feeds decentralized and reliable information to the blockchain network while ensuring that the incoming data is not influenced by anyone.
For instance, smart contracts were introduced to bind two entities into a contract for their dealing in
the real-world. In order to do that, someone has to feed into the contract as to what happened, which parties were involved, and what are the triggers of the contract. As of yet, all this information is given in a centralized manner.
However, with the help of Chainlink, only the democratized data, vetted by the majority of the nodes, will be fed to the smart contract.
It is quite evident that the DeFi sector is booming and is attempting to solve the most obvious issues faced by the general public. The best part about DeFi is that this technology is trying to address the mainstream issues faced by the core blockchain technology as well and this is why it is quite safe to expect that DeFi could very soon replace the centralized platforms working in the blockchain sphere.
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