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Since the emergence of blockchain technology and smart contract features, Defi has turned out to be one of the pioneers in the crypto space.
Although the overall blockchain technology is in its earlier days, it is still responsible for playing one of the significant roles in the creation of many life changing concepts and real life applications. Blockchain tech started treating it as a one stop solution for trusted authentication, security and reliability given its capabilities. Among many technological advancements, decentralized finance (Defi) markets are significant and one of the most promising parts of blockchain tech.
As reported by the data aggregator total value locked on Defi platform, DefiLlama, the valuation of the entire Defi market by 2021 had reached around $200 billion, given the smart contracts has this much amount of liquidity locked. Now considering the initial phase of the space and amount of locked value, this seems to be a staggering amount while looking at it as an initial investment. Having such backing, it’s also easier to think of it as a very promising venture.
But it’s not all good as it looks like to be, as new ventures in the nascent markets have to face several problems, Defi also has such issues of their own. In comparison, not many companies are there across the world with this huge amount of capital but still the main issue that Defi space is facing is lack of qualified and worthy blockchain developers.
Comparably, this whole industry is quite young in front of traditional companies and due to which it possesses a small user base. It could be better understood by the fact that regardless of how many people have heard about it, only a handful of them have clear knowledge about Defi. Still, there are lots of hopes from Defi as it happens in case with any other venture where it creates huge speculative interest given the new yet seems promising venture.
Even with lots of effort, preparing suitable and qualified developers is quite hard and a more time-consuming process than bringing awareness to people about the Defi. This becomes even harder when it comes to such a space where it needs intensive knowledge including areas like blockchain and smart contracts development. This effectively means that there would be some projects who would ultimately have to cut down and compromise on their work while hiring a less qualified and inexperienced personnel.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
