According to a report by Binance Research on 06 June, Ethereum developers constitute the vast majority of Decentralized Finance (DeFi) application (DApp) creators.
Binance in its report substantiated on DeFi as –
“An ecosystem comprised of applications built on decentralized networks, permissionless blockchains, and peer-to-peer protocols for the facilitation of lending/borrowing or trading with financial instruments.”
Binance continued by adding that a large majority of DeFi protocols are being built on Ethereum. Binance estimated that Ethereum-based DeFi applications are collectively worth over 500 million U.S. dollars (or more than 1.5 millions of ether), according to latest figures. The crypto-exchange major noted that one of DeFi’s highlight is Dai, a decentralized cryptoasset-backed stablecoin minted in the Maker ecosystem.
Binance argued in its report that since Ethereum is the largest blockchain platform by market cap, it is rather obvious as the birthplace of most DApps. The exchange stated that this stance may change with the introduction of new and growing platforms such as EOS. Binance conveyed the count of DeFi applications by blockchain. The exchange added insight regarding Bitcoin’s Lightning Network solution which is worth around 8 million U.S. dollars.
Binance indicated that since the lending and borrowing industry is new, it carries a few risks that are expected to be reduced as the industry matures. Binance clarified that more products in a more mature industry should give more options for participants to access financial services. Binance further added that the decentralized financial platforms may be a foundation or reference point for centralized institutions to make vital decisions.
Last month, Chiliz, the digital currency for sports and media platforms, announced a strategic partnership with Binance Chain to bring household names into crypto space. Chiliz expressed about Binance Chain as a blockchain software system built by Binance and its community. The digital currency firm opined that with this embrace, it would bring global brands such as Juventus and Paris Saint-Germain into the purview of digital coins.
Similarly in April, Mithril, a decentralized platform announced that it would be the first project to use Binance Chain, a blockchain software system developed by Binance. Mithril noted that by migrating to the Binance Chain, Mithril token holders would be much helped. Such owners would be able to experience the speed, security, and simplicity on the new Binance decentralized exchange platform.
Binance wrapped up by conveying that DeFi appears as one of the best use-cases of blockchain technology. DeFi could reach billions of users across the globe and allow access to basic financial services.