FinTech & Blockchain

A DeFi Future or Bust

· January 27, 2021 · 3:00 am

The start of 2021 has seen a revival of Bitcoin – the major cryptocurrency that acts as a tug for the rest of the crypto market. And though the surge in its price marks an important milestone in its history, a major question remains about the viability of the rest of the market and the phenomenon of DeFi that has led to the popularization of cryptocurrencies as means of payment in 2020.

There is no doubt that cryptocurrencies are shrouded in more doubt than opportunity as most participants in the crypto community have different attitudes towards the DeFi market. Some are enthusiastically following its success and praising the possibilities of digital currencies, while others are using DeFi to earn on its lifecycle. There are others still, who are looking for alternatives for earning on the market in light of the economic woes beleaguering the world.

But the future holds some moot points for the DeFi market and there are questions about whether it can survive in 2021. Despite the limited application of most projects that emerged on the crest of blockchain hype, DeFi has proven to be one of the most adoptable aspects of decentralized technologies in the real world. The given factor makes it clear that DeFi will occupy a certain niche in the financial market. An indirect sign of the viability of DeFi is the emergence of new projects supported by major players on the market, such as Binance and other exchanges.

Another important aspect of decentralization is its ability to provide additional passive income through staking and investments. As BTC has become heavily dependent on a small number of large mining pools that few can compete with, blockchains like ETH are offering average holders of assets the chance of becoming validators in staking without the need of having expensive equipment. A relatively low barrier to entry guarantees decentralization and prevents compromise of the blockchain network along with income.

The main advantage of DeFi solutions is their decentralized nature, which removes legal restrictions and allows users to quickly conduct transactions with cryptocurrencies quite reliably due to the use of the blockchain and without excess KYC requirements. Another example of the results of the growth of DeFi is innovations in the field of related technologies and offerings, such Wrapped ILCOIN – the latest development released by the ILCOIN Development team.

ILCOIN is a unique technology supported by second-layer RIFT Protocol solutions while WILC acts as a stablecoin in a similar way that Wrapped Bitcoin works and allows for passive income generation opportunities. WILC is an ERC-20 token that works on the Ethereum Virtual Machine and is tradable directly with the native ILCOIN asset and Ethereum by novice and expert crypto enthusiasts. One of the main purposes of WILC is to allow the development of the DCB smart contracts system capable of storing large amounts of data in a decentralized manner. WILC is scheduled for release at the beginning of February 2021, and will be tradable for ILCOIN at a 1:1 ratio from the moment of launch.

The successful launch of WILC and the DCB it is designed to fund and support is but one of the examples of how DeFi is being used not only to empower average users to find new earning opportunities but support promising technologies. If the trend continues, 2021 can see the birth of some interesting developments that can act as off-ramps for greater cryptocurrency adoption.

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