THE GROWTH AND EVOLUTION OF DECENTRALIZED FINANCE (DEFI) IN THE CRYPTOCURRENCY MARKET

Source

Hello my dear friend I hope you all are having a great time I welcome you all once again to another unique content where I would be discussing extensively on the evolution of DEFI

When we hear the word DEFI or Decentralized Finance, it denotes a shift or change from traditional finance system to peer to peer system built on blockchain.

This decentralized methods of banking aims at providing a better and more transparent system of banking unlike the normal banking system,

DEFI fully functions without the use of intermediaries but instead they rely on smart contract to carry out it transaction which is a more secured process

BRIEF HISTORICAL BACKGROUND

Although it is said that the idea of decentralization finance can be dated way back to the creation of the first Cryptocurrencies .which is Bitcoin in the year 2009 it was actually started with the launch of ethereum.

Because of the feature of allowing developer build dApps(decentralized finance) on it blockchain ecosystem, offering more stability in the crypto space

EVOLUTION OF DEFI IN THE CRYPTO SPACE

Here i would be talking about few key milestones that great contributed to the evolution of DEFI

RISE OF STABLE COINS IN 2017
Maker Dao ,one of defi's first major project launched in 2017.it aims was to introduce DAI a US dollars pegged decentralized stable coin ,

it was maintained using systems of collateralized debt position,(CDP) also on smart contract.the aim was to provide and promote a more accurate medium of exchange.

DECENTRALIZED EXCHANGES

Invention of decentralized exchanges like uniswap, was another great addition to the growth of DeFi

The reasons or aim was to allow individual token trades without a centralized third party, promoting accessibility of the crypto market and also creates liquidity in the market

THE LENDING PROTOCOLS
This protocols enabled Users to give their crypto asset up for lending, in platform like Aave to others who borrow by providing a collateral ,earning interest on their assets

Aave revolutionized the lending environment by introducing what we call flash loan which makes possible borrowing without collateral, if the loans where repaid within it own transaction.promoting the flexibility and initiative of DeFi

ROLES DEFI PLAYS IN SHAPING THE CRYPTO SPACE

DeFi since it launch in 2015 has made substantial impact on the Cryptocurrency market, which also majorly contributed to the wide spread acceptance of Cryptocurrencies and it's services such as lending trading staking.

This has attracted alot of investors both rental and Big whales investors in exploring and experiencing what blockchain has to offer.

DeFi also has the capability to improve financial inclusion and spurred innovation across the crypto space, by providing to individuals access to the development of new financial product or service to investors who are either unbanked or under banked.From decentralized insurance to assets price prediction

All just with a stable internet connection and wallet a user can easily partake in the global financial system, expanding the use of blockchain technology, regardless of their location.

CONCLUSION

The massive growth, acceptance and evolution of DeFi in the Cryptocurrency space changed the way financial services are delivered, creating an open transparent ecosystem of banking that challenges and tackle the problem faced with traditional system.

Thank you all for making time to go through my blog post, till we all meet again