Emergence Of Decentralized Application

Before Ethereum came into force, many crypto backers and investors were interested in developing the Bitcoin network.

After Ether (ETH) entered the mainstream, it opened up the new investment possibilities and other decentralized applications. These decentralized applications dwell on tokenization where its transactions formulated using Smart Contracts.

It led to the path of decentralized finance or DeFi, a peer-to-peer network transaction, which is entirely different from the centralized banking infrastructure like central banks.

Of late, decentralized finance has become the most exciting trend in the blockchain space. Although its adoption is minimal compared to the current global economy, DeFi has shown its rapid growth potential in 2020.

In the first quarter of 2019, there was only $275 million worth of crypto assets in the DeFi economy. During early Feb 2020, the number has grown into 1 Billion USD, and it has continued to grow upto 2.5 billion USD in July 2020.

It shows that there is significant growth in DeFi acceptance, both inside and outside the crypto community. So, a lot of people have started considering decentralized finance as part of their investment portfolio.

To do that, one needs to have a clear, in-depth understanding of the DeFi ecosystem.