DeFi Needs To Radically Change, And This Project Could Lead The Way

By November 24, 2022DeFi
Click here to view original web page at finance.yahoo.com

Detroit, Michigan --News Direct-- Radix

Web3 has grown massively since the creation of Bitcoin (BTC) in 2009, and despite its volatile market activity, many suggest that Bitcoin opened the gates to a new financial future.

Since then, the spectrum has broadened greatly - notably with the launch of Ethereum in 2015. Among the most unexpected developments on the general-purpose smart contract platform was the emergence of the Decentralized Finance industry.

What Is DeFi And How Does It Work?

DeFi (decentralized finance) was one of the fastest-growing segments of the crypto industry over 2020 and 2021. Powered by the same public distributed ledgers used by cryptocurrencies, the underlying tech behind DeFi allows it to operate without a centralized intermediary such as a bank.

In its early infancy, the total value locked (TVL) in all DeFi protocols rose from $601 million in January 2020 to about $20 billion by the same time the next year. 2021 saw its TVL rise exponentially to $256 billion by year-end.

The term DeFi is broadly used to describe financial products and services within this decentralized system, such as trading, borrowing, and lending, that are delivered autonomously.

DeFi has since grown to become one of the most important sectors of the crypto economy; and just as crypto itself disrupted the concept of currencies, decentralized finance is poised to disrupt finance itself from its traditional ways of operating through banks, other financial institutions, and stock markets.

Slowed by Complexity And Beset By Hacks, DeFi Is In Need Of A Paradigm Shift

The DeFi ecosystem has hundreds of decentralized applications and smart contracts, developed on programmable blockchains such as Ethereum. Apart from being transparent and efficient, one of the greatest potential superpowers of DeFi is atomic composability, meaning that products and services can easily be connected to interact with each other to build more advanced and complex financial offerings.

In recent years, DeFi protocols have been subject to multiple hacks, where vulnerabilities and complexities of smart contracts or other aspects of the DeFi service have been exploited by hackers for financial gain. In 2021, cyber attacks launched on , and as of the half year 2022, of the $2 billion lost in crypto attacks overall.

With still occurring annually in the crypto space, the team behind Radix believes that innovative new tools are needed for DeFi to deliver its promise of a radically better financial system.

Which leads us to the Radix and the programming language.

To learn more about Radix, visit the .

DeFi needs to be better - and it’s about to get radically better with . Get your free ticket to join RadFi2022 on December 8 and learn what the future holds for decentralized finance. .

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