20 July 2022
2 min read
Ever since its emergence, people from around the globe have been trying to explore the use cases of DeFi efficiently. DeFi has successfully offered a variety of solutions to the traditional, centralized approach toward customer/user data. But with its growing users each day, the question of sustainability comes up? How sustainable is DeFi?
Here, we have tried to outline the role and importance of sustainability in DeFi.
How DeFi is Breaking the bounds of Status Quo
The new and famous financial system called decentralized finance (DeFi) is built on safely distributed ledgers, comparable to those used by cryptocurrencies. The system eliminates the authority that financial institutions, including banks, have over money, financial goods, and financial services. There is no central authority looking over your money. Everything DeFi focuses on consensus.
There is no doubt that Blockchain has the potential to develop into a robust monitoring and transactional tool that can lower congestion, decrease corruption, build trust, and empower users. The question of interoperability and transparency has taken a backseat ever since the phenomenon of Blockchain gained some traction.
In a time of accelerated technological innovation, DeFi is offering opportunities that have been crucial for growth and prosperity in every generation before them, providing a lifeline for human progression and potential. It also enables people to take advantage of the redistribution of wealth and information. But how does DeFi do that?
Ever since the pandemic struck, governments and economies from all around the globe have been struggling to recover from its impact. Meanwhile, the emergence of DeFi and Blockchain has presented a chance to disrupt the existing status quo to level the playing field for the underrepresented.
One example could be accessibility. A variety of projects are in the making and lie beyond the periphery of DeFi. These projects are developed to widen the accessibility of Cryptocurrency among individuals. A remarkable array of services and layer two solutions, made expressly to increase the usability of existing financial instruments, continue to support the increased acceptance of cryptocurrencies and rebuilt finance.
DeFi, Blockchain or any other technology, it's vital to understand that every technological choice should align with the vision of a sustainable future. A future with ease of accessibility for all. DeFi has come a long way and has a bright future ahead. With so many new projects launching each day, we must understand and support projects that benefit investors of all kinds without any barriers.