How can Blockchain for Decentralized Finance Yield benefit Common People?

The world of finance has been transforming in the last few years due to the rapid rise of cryptocurrencies. These virtual currencies have seen meteoric growth in the previous decade as blockchain technology grew alongside. As non-fungible tokens (NFTs) saw their surge phase in 2021, blockchain for decentralized finance (DeFi) evolved as well since more crypto coins came into existence. The volatile nature of cryptocurrencies meant that holding (or, rather, HODLing) them did more bad than good, which became startup ideas sometime back, and have been successfully adopted all over the Web3 space. This blog focuses on using blockchain for decentralized finance and associated development.

DeFi Development in Detail

Don’t wonder that the word’s abbreviation sounds like the word “Defy,” as decentralized finance aims to defy the traditional centralized financial institutions as a revolutionary move. DeFi development encompasses operations such as staking, lending, borrowing, yield farming, mortgaging, exchanging, insurance, etc. Some platforms specialize in some of these, while a few contain all these features, similar to a bank. Popular DeFi platforms include UniSwap, Aave, SushiSwap, Compound, and 1inch. DeFi in blockchains has seen phenomenal growth, which can be witnessed by almost 80 billion dollars locked in cryptos at the time of writing.

Steps Involved in DeFi Platform Development

DeFi platform development begins with the planning phase when you plan for the business. Analyze business feasibility, market value, competitors, and technological requirements.

Now, begin crafting the prototype for the DeFi development solution by integrating model user-ends and having them reviewed by experienced domain professionals.

Based on the feedback, you can improve the prototype into the actual front-end by incorporating all the features you need for the venture to provide a user-friendly experience.

Now, develop the DeFi development solution’s back-end that helps make the user-ends work. Integrate the DeFi platform into the pre-decided blockchain(s), and create native tokens which can be beneficial to keep your business value up.

Then, test your platform for possible defects and resolve them promptly if found. Ensure to use various test cases (automated and manual) to eliminate all possible errors.

Afterward, promote your business using different proven marketing strategies and list your native tokens in popular exchanges to ensure liquidity and market value.

Lastly, release the platform for public use, and ensure your venture regularly engages with users to get valuable suggestions. Release upgraded versions often to keep up with decentralized finance and user traffic growth.

The DeFi platform development process will be slightly different when you use White label solutions for your venture. These solutions are developed beforehand, eliminating the toughest part of building such platforms.

Advantages of Decentralized Finance Development

Decentralized finance development benefits from automated platforms that govern and execute financial transactions without needing third parties.

DeFi in blockchains uses smart contracts, which are code snippets that can execute when set conditions are met.

These unchangeable mutual agreements stand as the basis for a DeFi transaction, which, when failed to meet, do not complete.

These platforms run on strategized investment plans that help investors to earn profits, and the platform maintains a seamless flow in terms of financial stability.

Decentralization is at the core of DeFi development that eliminates the involvement of intermediaries and associated charges in transactions.

Data breach concerns and sudden shutdowns are eliminated as these platforms run on the distributed blockchain ledger, where changes made will be publicly visible.

The usage of blockchains ensures that financial transactions can be made anonymously (without revealing the original identity) even though every transaction detail is visible on the digital ledger.

Since DeFi platforms are based on blockchains, they can be accessed by anyone from anywhere, without any prejudices regarding economic or geographical backgrounds.

One can even run an aggregated platform with multiple DeFi functionalities that can serve as one-stop solutions for Web3 crypto users.

Blockchains’ publicly trustable nature allows DeFi development solutions to have high levels of transparency and trust among users.

Conclusion

Thus, blockchain for decentralized finance can do more good as common people can access them with little awareness. Campaigns promoting DeFi platforms have become common now, which would elevate the DeFi market as time passes. If you want to maximize such chances, consider working with a firm with expertise in DeFi platform development.