Decentralization is the essence of blockchain. All crypto enthusiasts believe in bringing decentralized finance (DeFi) into the mainstream. Nevertheless, the struggle is still in-process despite identification fault lines in centralization. Governments are not ready to let mutual consensus take over the place of central authority. However, there are startups and companies with innovative ideas that might normalize DeFi sooner than later. Radix DLT is one of them.
Radix is concerned with building a DeFi protocol. The motivation behind this is that decentralization is the only way forward. Radix is employing three drivers for the growth of DeFi namely, access, liquidity, and choice. It also released a white paper recently explaining technologies for first layer protocol.
Here are the four technologies which according to radix will bring the mass adoption of DeFi:
- Cerberus: It is a fast network consensus mechanism.
- Radix Engine: It will build DeFi applications.
- Component Catalog: This is a library for the establishment of DeFi.
- Developer Royalties: It is an incentive program but a decentralized one
Mainstreaming of DeFi:
Defi is worth over $6 billion in value today. For technology to go mainstream, radix believes, it needs only four things. Firstly, there should be speedy transactions in blockchain ledger with diminished costs. Paying high costs and waiting for verifications makes the system inefficient.
Secondly, the design of the system must be secure. People are trusting applications with their value. So, frequent hacks and disruptions can wear off trust.
Thirdly, scalable and composable applications will make the magic of DeFi more tangible. Lastly, individuals should get incentives for making the decentralization ecosystem more powerful.
Ultimately, Mainstream DeFi will happen when all of the barriers holding back DeFi today are removed, without compromising decentralization. It happens when developers are finally given the tools they need to build apps that can surpass the services offered by the traditional financial industry. It happens when users of those apps wonder why they ever put up with the old way. Mainstream DeFi will move far beyond $4 billion and begins to absorb the $111 trillion waiting to be deployed onto the public ledger.
Many big names in the crypto industry, like CEO of Binance, believe that DeFi is the future. With Radix pitching in for mainstreaming of the system we can envision the future. So, if you too have an interest in decentralization then right now is the perfect time to learn about it.
We frequently share crypto and blockchain-related news on our blog. We carefully trim our material for both beginners and expert crypto users. You can read our blog on DeFi over here.