Top 5 DeFi Development Services

DeFi refers to a group of financial products and services available to anyone who uses Ethereum and has access to the internet. There are no centralized authorities that can prohibit payments or deny you access to anything with DeFi, as the marketplaces are open. Services that were once slow and prone to human error are now automated and more secure, thanks to code that anyone can read and evaluate.

With a growing market for blockchain technology and cryptocurrencies, there have been several developments in the DeFi space. In this blog, we will discuss some key trends to expect in the DeFi space in 2022.

1.Monetization of blockchain-based games

Since the advent of the Internet, the gaming industry has experienced rapid growth. With the introduction of blockchain-based games, it is expected to grow even further and gain a larger user base. However, monetization of games requires the introduction of DeFi protocols to enable players to make payments via the Blockchain. Coining NFTs and trading between players are some examples of monetized gaming. With the emergence of many blockchain-based games, there will definitely be an increase in the use of payment portals, for which the application of the DeFi platform is a necessity and may turn out to be a new trend.

2.Cross-functional DeFi platforms

As the blockchain market has grown, other blockchains such as PolkaDot and Equilibrium have been introduced alongside Ethereum. In addition, Ethereum’s rising transaction costs have prompted users to adopt a cross-functional platform. Cross-chain technology allows transactions and smart contracts to be transferred from one chain to another. Therefore, in order to conduct stable transactions across different blockchains, a DeFi platform that can surf multiple platforms is required.

This cross-functionality could solve many problems faced by users and will become a new trend in the blockchain and cryptocurrency industry.

3.Governance Tokens

These are tokens that give holders governance rights within a particular protocol, game, dApp, or DeFi (decentralised finance) solution. These tokens are not the same as traditional cryptocurrencies. The goal of these tokens is to give voting rights to token holders via an underlying DeFi technology. Token holders vote on initiatives, and the value of their tokens increases as the DeFi protocol gains popularity and its total value (TVL) increases. So this voting right gives users additional power, which will make DeFi more popular, so owning governance tokens could be seen as something normal in the future.

4.Popularity of NFTs

With the introduction of several new platforms such as OpenSea, Foundation, and Cryptopunk, demand for NFTs has doubled in recent months. This is putting pressure on DeFi protocols to support the buying and selling of NFTs. In addition, new areas of NFTs such as music NFTs have experienced massive growth, creating the need for a DeFi protocol there as well. Therefore, DeFi developments in the NFT field will be huge in the next 2-3 years.

5.Reinforced regulation

The problem with DeFi is that most investors aren’t smart or tech-savvy enough to know whether the promised returns are realistic or not. Many DeFi protocols aren’t as decentralized as one might think, making them vulnerable to theft and cyberattacks. As a result, governments are looking for greater regulation to make trading fairer and more efficient and to prevent manipulation and fraud.

Some governments have begun to tax cryptocurrencies and other blockchain-based transactions. In fact, taxation will be the next emerging trend in DeFi as more governments adopt it and regulate cryptocurrencies more.

Over the next five to ten years, the blockchain industry is expected to see massive changes. These new updates are a result of people’s increased awareness and curiosity about cryptocurrencies and NFTs. In addition, the blockchain industry has seen the emergence of various sectors such as music, NFTs, and gaming. With new consumer segments entering the market, the demand for a secure payment gateway on various platforms has increased, for which DeFi is crucial. In line with all these developments, DeFi’s role will expand to include the latest developments.