Here are some opinions by decentralized finance experts on Bitcoin or Ethereum as the future of DeFi. One of the promising and fast-growing trading environments in the blockchain and cryptocurrency space is decentralized finance. The total asset value linked to DeFi is almost hitting the $40 billion mark
this month, an indicator of a 200 times rise in value since February 2019. We are only at the beginning of 2021, which signifies key improvements to the DeFi space.
We are witnessing key changes in the world, thanks to DeFi. Many argue that it is starting to move to actual decentralization (from Web 3.0 campaign to decentralized governance). Other people see it as the answer to the future of banking and broken legacy finance.
Despite all the advantages you get from DeFi, we must address some challenges. The success of this ecosystem in the future relies on safe and authentic data, free from exploitation and, therefore, less open to attack. This needs the use of quality-control features. Enhancing the speeds of transactions and the peer-to-peer feature are also vital issues that will help gain broad acceptance and viability to the sector.
Currently, the key impediment for the development of DeFi is the steadily rising gas rates on Etehereum. It was above the $1,000 mark this month. As the anticipated Ethereum 2.0 transition (which aims to sort out this problem) ‘will rescue the moment,’ some say DeFi users should not wait for Eth2 to demonstrate what it says it can do.
Without a doubt, ETH has overtaken BTC as the top DeFi protocol network and infrastructure. However, certain experts indicate that “it’s difficult to imagine a space where there is no BTC use in DeFi products.” Other experts claim that BTC “will be compelled to confound its supply limit of 21 million to stay relevant and sustainable” since DeFi keeps flourishing and growing.
We talked to several experts in the DeFi ecosystem for their word on the following issue: Will DeFi continue being exclusive on Etehreum or grow on other layer ones, or will fresh projects that add smart contracts to BTC take its idea?