The emergence of cryptography: how the sense of market and Defi promote the future of finance

In recent years, the world of cryptocurrency has been in tears, and prices are rising to the heights of spindles and new investors going to Mass to join the party. But what determines the increase in this market? And how does he play his role in configuring the future of finance?

Mercado feeling: Current game condition

The encryption market has always been known for its volatility, but in recent years they have noticed significant changes towards a sense of market that promote growth compared to caution. According to Cryptoslate, the cryptocurrency index increased by four times more than in 2017, some currencies that are exponential in price profits.

The main engine of this feeling is the increasing understanding and receiving of the Defi technology (decentralized funding). Defi platforms have become an important force to break traditional finances by offering new ways to users to administer their money and use financial services, regardless of intermediaries such as banks.

For example, the decentralized loan protocols, such as Compous and Aave, have become family names that allow users to give and ask for cryptocurrency with minimal prices and without the need for exchange or centralized runners. This has developed a new financial services ecosystem that democratizes access to capital and promotes more efficient markets.

decentralized funding (Defi): Future of Financial Services

So what exactly is Defi? In short, it is a network of decentralized programs (DAPPS) based on blockchain technology. These DAPPs use intellectual contracts to automate operations and provide users new financial services that are usually not traditional in financial.

Some of the main functions of Defi are ::

1

• Decentralized Exchange : Exchange such as Uniswap and Sushiswap, allows users to exchange cryptocurrencies with minimal rates and do not require exchange or centralized runners.

• decentralized agriculture : platforms such as Makerdao give users the ability to generate harvest by participating in decentralized loan protocols.

Layer 2: Next Defi step

Defi continues to grow, a new generation of layer 2 solutions emerge to maintain its growth. These solutions, such as optimism and polygon, are designed to improve scaling and efficiency by maintaining traditional blockchain networks.

The main advantage of layer 2 solutions is that they allow faster operation time and lower rates compared to traditional blockchain networks. This means that the definitions of programs can now rise by a much larger number of operations per second without losing convenience or availability.

Future of Finance: Crypta, Defi, Layer 2

When the market continues to grow and develop, it is clear that Crypto, Defi and Layer 2 Solutions will play an important role in configuring the future of finance. Although there are still many challenges, such as regulatory obstacles and security issues, the potential reward is huge.

In fact, many experts predict that in the next 5 to 10 years we will notice a significant increase in technology development. This can lead to generalized changes as we think about finances, and the Defi programs are increasingly integrated into our daily lives.

Conclusion

Crypto’s uptake has created a new paradigm of financial services as the market feeling promotes the growth of Defi and 2. As these technologies continue to develop, it is clear that they will play an increasingly important role in the configuration. the future of finance.