Blockchain technology has proven itself as a secure, highly efficient, and trustworthy system that can be applied to multiple spheres. If your enterprise intends to implement blockchain-based solutions, here are things needed to be done first: list particular issues, define business goals, and find a reliable blockchain app development company.
Firms involved in finance may be considering new ways of investment, earnings, and asset management. Such a phenomenon as decentralized finance (DeFi) has evolved into a sector with continuous growth. The most lucrative industry segments are DeFi lending, DeFi payments, and decentralized exchanges, meanwhile, new kinds of DeFi projects keep emerging.
DeFi lending & borrowing platforms for receiving instant loans
You can imagine the traditional process: you save money in the bank and earn interest. Once the fund is in the bank, a bank customer cannot use that money in another way. Decentralized finance is trying to realize an idea that you could spend the money your savings earn, yet still keep saving.
DeFi lending and borrowing platforms offer this opportunity. Lending and placing funds are possible via smart contracts. Each loan is secured with crypto, and any user can borrow “money” and pay interest on funds. Below are several notable developments in the DeFi space.
This DeFi yield aggregator on Ethereum was created by Andre Cronje in February 2020. The system features a transparent launch and a maximum supply limit of 30,000 YFI. Although it’s been only a half year since the creation, yearn.finance managed to grow into a successful DeFi protocol.
Here’s how yearn.finance works . Depending on the highest yield offer, tokens are moved between pools Aave, Curve, Compound, and dYdX. Smart contracts automatically transfer funds to the most profitable option and guarantee optimal returns.
Another platform built on Ethereum is called Compound. It’s a system of openly accessible smart contracts, where lenders provide loans in the form of crypto assets by placing them into the protocol, and borrowers take out loans.
Again, how exactly does it work? First, the investor signs a transaction and approves the funds they want to lock with the use of the protocol. The asset immediately gets to the money market and after specifying the asset a user can borrow it right from the protocol. The generated profit is distributed among investors with real-time tracking of interest.
Among other platforms are also Aave, dYdX, Nuo Network, Dharma, and more.
What attracts people about DeFi is that it provides services without intermediaries or centralized banking. DeFi solutions are built on all major blockchains, however, the leader in the DeFi sector today is Ethereum. Most of the platforms, protocols, and DApps run on the Ethereum blockchain technology created wide user communities.
Other practical blockchain-based solutions for businesses
Blockchain technology includes the following features: immutability, transparency, decentralization, enhanced security, tamper detection, high transaction rate, low transaction cost. All of this can be useful for your enterprise where data loss and customer distrust are real problems.
Blockchain solutions are already widely implemented in the supply chain, retail, real estate, healthcare, FinTech, sharing economy, e-commerce, e-governance, gaming. Each industry encounters specific challenges that are possible to solve with the help of blockchains.
For instance, supply chain management often involves high intermediaries fees, difficulties with ensuring the right quantity and quality of the product, timing, and setting. Any supply chain contains a complex network of manufacturers, auditors, suppliers, retailers, and consumers. Blockchain excludes middlemen with their fees and provides a common infrastructure that is transparent and allows to track the product from the field or a factory to the final consumer.
When it comes to healthcare, blockchain offers new ways of keeping medical records. Both patients and doctors are able to access the information and use it when necessary.
Retail face problems when customers are not satisfied with a product or ask about its origin. With blockchain technology, finding the information within a couple of minutes won’t be a problem either.
Each sphere can benefit from implementing blockchain technology. It is important to set specific business goals and delegate them to a blockchain app development company, which will come up with a customized solution.
You can read more information about Bitcoin SV Blockchain on https://bsvblockchain.org