Can Decentralized Finance Become the Future’s New Digital Economy ?

Over the past two years, DeFi has perhaps become the most striking event in cryptocurrency reality. The rise of this new star is closely tied to Ethereum, the second-largest cryptocurrency network by market capitalization, on top of which almost every existing DeFi application runs. The fact of the matter is, Ethereum is not only a digital asset that allows you to make transfers on the blockchain network but also an entire ecosystem within which you can provide services and perform more complex tasks, such as writing smart contracts. It was these two functions that became the foundation for the emergence of the DeFi phenomenon, which ultimately became something of a spontaneous market response to the request for freedom of financial services and their equal provision to any participant in the ecosystem, regardless of the social status and geographic location. Over the past year, the capitalization of the DeFi market has grown by almost 60 times reaching a height of $130 billion, and the total value of user deposits (total value locked, TVL) has grown about 100 times, reaching roughly $100 billion. Many analysts predicted the industry to have the quickest decline in history, but DeFi withstood every problem it faced thanks to its underlying network. Being overloaded with transactions allowed for a general correction in the cryptocurrency market, which brought down the cost of the first cryptocurrency and along with it, the rest...