There has been quite a stir in the cryptomarket. A new asset is giving the cryptocurrency industry much much-needed despite asset prices persisting to stay at 75% lower than where they were around two years back, in 2017. It’s called DeFi, the acronym for decentralized finance. A notion that crypto entrepreneurs can duplicate traditional financial instruments in a decentralized architecture, outside the control of any centralised authority.
So what is the difference between Ethereum, Bitcoin and DeFi?
Well, none. Bitcoin and Ethereum are the original DeFi applications. Both are regulated by large networks of computers and are free from the reach of any central authorities. Several investors use bitcoin, like gold, as a hedge investment against inflation. Ethereum, on the other hand, has been instrumental and (sometimes, also controversial) in assisting(g startups in crowdfunding their operations.
But what has led to this roaring rise of DeFi in the crypto industry? And is it here to stay?
Impact of DeFi On The Cryptocurrency Market
DeFi has become the news of the hour and many popular names in the finance world have some very insightful comments about the currency.