The uninterrupted growth of 2020 represents volumes about the potential of the decentralized financial industry. What commenced as a new-fangled technology is on the ceaseless spur of massive adoption. Little did we know what serves as a fragment of the Ethereum network would lay the foundation for trustless and open-source financial markets.
The previous months witnessed a constant surge in the DeFi rally. The number of users actively involved in the decentralized space has substantially increased due to its creative products, pursued by lucrative returns. Nevertheless, the unprecedented events in the global turmoil have optimistically favored the decentralized financial space. With the commencement of 2021, the future seems bigger and better.
The prevalent DeFi Infrastructure
The novice DeFi industry saw the initial base layers such as blockchain protocols and basic infrastructure as the decentralized financial industry’s building blocks. However, with the inception of various protocols like MakerDao, Compound, Circle, and many others, the trustless financial space quickly accelerated to the scaling phase. Therefore, it witnessed a major shift in the DeFi landscape where the emphasis was to strengthen the prevailing infrastructure.
Furthermore, projects are obliged to co-exist to capture a larger market share to interact with the existing users. The scaling phenomenon paced collaborations and cross-chain applications. Integration with multiple protocols with advanced specialization became the norm. A substantial weightage was paved for comprehensive security audits and risk management mechanisms for the DeFi industry’s growth.
Key challenges hampering the growth of the DeFi industry
However, moving forth, certain challenges need to be addressed to power the DeFi ecosystem in a quest to target the masses. Currently, the industry falls in the developing phase facing issues such as interoperability and scalability. The introduction of cross-communication trades in the decentralized financial ecosystem is imperative to promote the modern financial industry’s functionality.
The future lies in multi-chain technology, considering the ease of transactions that it would offer the potential platform users. Smooth flow trades would enhance user experience resulting in a shift from traditional financial applications to decentralized financial applications.
SafeDancer team is led by seasoned entrepreneurs and experienced professionals passionate about addressing key challenges in finance, blockchain, cryptocurrency, and technology. With immense expertise, they expedite to revolutionize the decentralized financial landscape by building sophisticated products that aspire to bring DeFi to mainstream adoption in its true potential.
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