The founder of peer-to-peer lending platform for digital assets, DeFiner, believes the launch of Ethereum 2.0 could be the catalyst for DeFi (or decentralized finance) growth. Jason Wu, who foresees 2020 as the year of DeFi following its birth in 2018 and the further growth it witnessed in 2019, sees this alternative to the traditional financial system continue to mature in 2020 as an ecosystem.
“The different services within DeFi such as DEXs, lending, insurance, market makers, hedge funds etc., have started to connect with each other and form an alternative financial system to serve the customer,” DeFiner’s Wu says. “This will increase the liquidity of DeFi and ultimately provide a better service to the customer. In addition, this alternative financial system has already demonstrated financial innovation that didn’t exist in the traditional financial system, a clear example being the rapid rise of peer-to-peer digital loans.”
Ethereum has been the main network known for running most decentralized applications including DeFi projects but has been bugged down by technical issues surrounding mainly its platform’s scalability. Its laggy pace of restructuring over the last two years, though, has seen several other smart contract platforms emerge to compete with its dominance. Now, from China to Europe and the U.S., several new blockchains have emerged with networks that are bent on outdoing one another in hosting projects including those that are focused on DeFi.