The platform uses the Ethereum blockchain to enable smart contracts to be scaled to a speed of 72000 transactions per second, which is far superior to what other blockchains can offer. Polygon is a Ethereum Layer 2 scaling solution and a decentralized application ecosystem. Polygon (MATIC) is one of the most recognizable DeFi projects in the crypto space, leveraging its unique potentialities to enable scalability and blockchain interoperability. In fact, this principle of decentralization can be applied well beyond just payments, lending and borrowing to all services that use cryptocurrencies and blockchain-based protocols.Īll of this can help not only tackle bureaucracy issues but also speed up transactions and enable a financial system that can be more transparent and accessible to people who would otherwise be shut off from the traditional financial system. But whereas a third party is required to validate typical fiat transactions, with DeFi smart contracts can be used across the entire system to enable a true decentralized ecosystem. Some of the transactions you’ll see with DeFi resemble traditional finance, like loans, transfers, exchanges and insurance. What Is Decentralized Finance (DeFi)?ĭecentralized finance covers a great number of financial activities that take place without the intervention of any intermediaries and centralized authorities, like a bank or the government. Whether you’re looking for a loan or you’re an entrepreneur seeking backing for your next big project, DeFi could be the answer.ĭon’t know where to start? We’ve put together a list of the top 10 DeFi projects (and DeFi tokens) you ought to know in 2022. The DeFi space is seeing a number of successful projects blowing up, leveraging the best out of blockchain technology to replace traditional market makers and remove the need for intermediaries to power decentralized ecosystems, opening up finance to a wider group of users. And this is despite the current downturn in the overall crypto market.
Decentralized finance, also known as DeFi, has been a growing sector of crypto, with some $71.35 billion in total value locked across all networks (at the time of writing).
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