Many people argue that decentralized finance (DeFi) has surpassed being just a mere buzzword and is now a crypto subculture worth investing heavily in. But until this year, DeFi was practically unknown by the world. Heck, some of you may be reading this article out of curiosity on what is DeFi. Here, we give you 3 facts that you may not have known regarding DeFi.
But before we proceed to the 3 things you might not know about DeFi, let us first define what is DeFi. In simplest terms, DeFi is an assortment of finance-related products and services that use cryptocurrency and/or blockchain technology. Many are still coming up with ideas as to how blockchain will be used for making alternative financial services to people.
Now that we know what is DeFi, let us find out the 3 things you might not know about DeFi.
- DeFi is not really “new”
Despite taking the crypto world by storm in 2020, the concept of DeFi is not really new. MakerDAO Founder Rune Christensen arguably started DeFi in 2017. Popular DeFi platform Aave also started at around that year. In fact, DeFi reached the $1 billion total value locked (TVL) milestone around June 2020, according to DeFiPulse.
- You can build DeFi on other blockchains aside from Ethereum
Ethereum may be the most popular DeFi creation platform due to its influence, but it is not the only one that people can build DeFi protocols on. Theoretically, as long as a blockchain ecosystem allows people to create and execute smart contracts, you can build DeFi on them. Other examples include EOS, Tron, and Binance Chain.
- Vitalik Buterin Isn’t Hyped on DeFi
Despite the number of popular DeFi protocols built on Ethereum, godfather Vitalik Buterin is not 100% sold out to DeFi. As you might have observed through his Twitter account, he isn’t part of the DeFi bandwagon since it exploded in popularity this year.