DeFi Dapp Development Company- Enhance your business through efficient Dapps on DeFi protocols

DeFi Dapp Development Company- Enhance your business through efficient Dapps on DeFi protocols

Posted On Oct 17, 2020
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Decentralized Finance is the only open alternative to all our conventional finance services. Here, the whole financial system is decentralized without any intermediary. Thus it leads to minimum transaction fees, rightful ownership over funds, and better safety standards. 
 
The dependency on a third-party is ruled out in DeFi. In simple words, it means, when you purchase/perform transactions online, you can directly pay from your wallet without the support of any external parties like banks, UPI applications, etc., 
 
Though it sounds simple, DeFi applications (Dapps) have got a lot more in store for us. But before we explore its benefits, let’s understand how DeFi works. 

Decentralized Finance (DeFi) Mechanism 

Smart contracts are the core engine behind the concept of DeFi. 
 
But, what are smart contracts?
 
Smart contracts are pre-coded, automated agreements that function based on conditions using blockchain technology. They don’t need a bank or lawyer to process.
 
Example: You wish to send $4 for a pizza only when Pizza Hut delivers at your home. This condition is coded on the smart contract. Once the condition is fulfilled, the transaction takes place on its own.
 
Ethereum powers smart contracts. So, a majority of the DeFi based projects are built on the Ethereum blockchain network. 
 
Beyond purchasing, DeFi plays a vital role in multiple sectors. 

Decentralized Applications (dApps)

Decentralized applications are called as dApps. Major dApps in the current crypto industry are as follows.
 
  • Decentralized exchanges (DEXs)
  • Stablecoins
  • Lending platform
  • ‘Wrapped’ Bitcoins (WBTC)
  • Prediction markets
  • Yield farming
  • Liquidity mining
  • Money legos· 

They offer the following services on DeFi Protocols

  • Direct purchase.
  • Lending.
  • Borrowing.
  • Insurance. 
  • Crowdfunding. 
  • Betting.
  • Cryptocurrency Exchange. 

How does it prove better than our traditional banks?

Shortcomings in banks: 

  • Our banks have tedious regulations to comply with. 
  • The manual process involved in getting sanctioned for a loan (or) other financial service is time-consuming. 
  • Requires our physical presence at banks and manual signature (which can be counterfeited). 
  • Reduced customer support. 
  • A biased approach towards wealthy prospects. 
  • Prone to hack. 

Advantages in DeFi: 

  • Users can avail loans without a credit score check. 
  • In the flash loan concept, users can borrow digital funds, earn profit in another protocol, and repay the amount in less than 15 seconds. Can you imagine? 
  • Immune to hack, since the entire system is decentralized. 
  • Requires no physical presence. 
  • Equitable across the world. No rigged approach towards customers. 
  • Independent of external factors like natural calamities, government, etc.,

Benefits of Decentralized Finance (DeFi) Applications

Transparency:

The transactions made in DeFi platforms are pseudonymous, where the identity of the users is hidden. The entire code of the system is out for the public’s view, thus promoting more trust and confidence among consumers. 

Worldwide usage: 

All DeFi based finance systems need is a smartphone with an internet connection. So it has the massive power of catering to the needs of the global audience. 

Permissionless:

Anyone can create a DeFi platform and offer it to the world. No tedious complications involved. 

Money Legos:

DeFi apps are interoperable. It means, just like lego blocks, one DeFi app can be built on another and the services can be widened through one source. 

Business Opportunities in DeFi Applications

  • DeFi is prevalently termed as the future of finance. It’s because of the huge business prospect it holds. 
  • Banks like Goldman Sachs. HSBC, JP Morgan, and Barclays have already moved to blockchain technology, owing to its potential. The DeFi revolution has just begun, and there’s a long way to go. 
  • Between 2018 and 2019, DeFi’s global value skyrocketed from $163 million to $664 million. That’s 300%!
  • At the time of writing, the total value locked up in DeFi contracts is $11.01 billion. 
  • DeFi exhibits exponential growth and there’s no stopping anytime soon. 
  • Its increased adoption all the more confirms that it’s the future of finance. 

Launch your DeFi application with Osiz Technologies 

Osiz Technologies supports its clientele with all kinds of development support related to Decentralized Finance (DeFi). From smart contract development to decentralized exchange development to famous DeFi applications like Aave, Synthetix, and Compound, Osiz Technologies’ pool of blockchain engineers and technical DeFi developers help you convert your dream Dapp (DeFi) project to reality.  
 

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