Are you holding DeFi coins? What the Future Holds for Decentralised Finance (DeFi)
Decentralised finance is one sector of cryptocurrency that has a lot of potential but has not been fully harnessed. DeFi is expected to gain more significant traction as more people and institutions understand its benefits.
One might be asking, What's Defi?
Decentralised Finance (DeFi) are financial services and applications that are built on blockchain technology, which aims to recreate and enhance traditional financial systems, such as banking, lending, borrowing, trading, and asset management, in a decentralised and permissionless manner.
What's the future of DeFi?
1. Security: With the advancement in blockchain technology in the near future, DeFi applications will strengthen the security features of the crypto industry, making them resistant to fraud and hacking when implemented correctly.
2. Interoperability: Currently, most chains lack interoperability; one can't easily interact between two blockchains without undergoing a rigorous process and paying a high transaction fee, but many DeFi projects are designed to work together, allowing users to leverage multiple DeFi applications in a seamless manner. Decentralised finance will enable interoperability in the crypto industry.
The future of DeFi looks even more promising, but not without challenges. How we handle these challenges will determine the outcome.
