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- 1 A survey by Uniswap reveals many challenges faced by users while using DeFi.
- 2 Uniswap calls for spreading knowledge about DeFi and the advantage of self-custody to increase DeFi’s uses
Recently a survey was conducted by Uniswap which concluded that problems while using DeFi can stop users from using it frequently. The survey focused on the problems that users face while using the on-chain experience.
But before diving into the details let us first understand what DeFi is.
What is DeFi and how it works
DeFi stands for Decentralized finance. It is a new-age technology used in the financial field. The technology used by DeFi is similar to that used by cryptocurrencies and is based on secured distributed ledgers.
DeFi has become very popular over time because of the transparency that it provides. Institutions like the Federal Reserve and the Securities and Exchange Commission have a set of rules for centralized financial institutions on which consumers rely for liquidity. Here DeFi is not centralized and it allows individuals to make peer-to-peer digital exchanges.
DeFi makes it very easy for users. While banks charge fees for transactions, DeFi eliminates the entire process taken by the banks to transfer money. DeFi users can secure money in their digital wallets and can make payments to anybody across the world.
Blockchain is the technology used by Decentralized Finances to carry out transactions. Applications termed as dApps are used in running the blockchain and handling transactions.
The Blockchain transaction runs on something called a “Block”. Once a transaction is done it is recorded in a block and after verification by other users, the block is closed. After the block is verified it is closed and encrypted and another block is created with the previous block information.
The blockchain has been named so because all the blocks are connected with the information of its previous block. One of the biggest security protocols among others is that no block can be changed without altering the information of the previous block.
Survey by Uniswap
Uniswap is a U.S.-based company that promotes DeFi token trading on its platform. It recently did a survey related to DeFi. The poll of 1,860 U.S. retail users revealed that users face difficulty with the complexity and charges of on-chain trading.
There are various problems related to DeFi transactions. The survey indicated that to adopt DeFi as a tool for transactions it still needs lots of improvements. The process of trading on Uniswap requires a user to have a wallet and enough Ether to begin the process. This also includes very high gas charges sometimes and all of this trouble for users to even understand what they want to do.
Even Uniswap understands that there is only a limited number of things that they can do about the transaction fees and platform. Uniswap labs surveyed to understand and improvise on the challenges faced by the users. The company wants to educate the advantages of self-custody for those who’re already using the DeFi services.
Uniswap further wrote in a blog post explaining how the entire industry must put hands together to educate users about the benefits of DeFi and self-custody. The company believes that expanding knowledge will grow their confidence and increase DeFi’s use.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
