DeFi Open Finance Development is the hottest trend in the market now
DeFi Open Finance development is breaking new records every day in the industry with more funds being allocated towards different open-source protocols.
It gives users more autonomy as financial applications will be built on immutable blockchain networks by using the power of smart contracts. The blockchain platforms used are Ethereum, Bitcoin, TRON, EOS, Polkadot, and Cosmos.
Defi Open Finance development is a game-changer due to several reasons like
It achieves economies of scale efficiently by not depending on the services of any central authority.
It ensures full automation by promoting digitization and eliminating the use of paperwork
Maintaining a high level of transparency and collectivization.
It can provide services to the unbanked sections of the population just through a smartphone and an internet connection.
It prevents a single point of failure as the functions are spread across thousands of nodes at a time ensuring no chance of a potential shutdown.
Price efficiency in the market is improved for the users as they can take either a short or a long position on their assets flexibly.
Efficient diversification is facilitated as the users can segregate their assets simultaneously and the risk will be divided and safeguarded by the collateral locked in the smart contract.
It comprises decentralized lending and borrowing, token creation, wallet integration, smart contract development, DApp development, yield farming, insurance, and staking platforms.
The main obstacles to DeFI Open Finance development are the presence of regulatory uncertainty, the lack of recognition of decentralized services, an unfriendly user experience, network congestion issues, and vulnerable technology. Hence, the field is still very nascent and a lot of work is being done rapidly.
