The importance of the blockchain


Most Defi projects run on the blockchain or similar systems.  It is one of the cornerstones of this movement and group of innovations.  The blockchain and the algorithms that govern it guarantee the possibility of having safe exchanges without institutions in the way.  It is worth remembering that the Cardano Blockchain is also useful because it sometimes allows you to trace different transactions and also offers a certain level of transparency.

 As to the fact that it can guarantee horizontality, this is not always said.  Because we are faced with a system that can also be implemented using supernodes this is the case of several projects which all in all play a prominent role.  Finance thus organized always remains decentralized, precisely because it can guarantee the absence of monopoly on the part of nodes and sectors.

It is important to select the best because choosing them from a sector where dozens of them are born every week and where some, among those born more recently, have already reached an excellent capitalization and are already among the strongest cryptocurrencies, even if only speaking of economic aspect. Even one will be interested not only in what is offered in terms of potential economic growth but also the technological solidity of the projects, closely linked to their growth and even survival possibilities, where they were operating in particularly competitive niches.

Many of the projects already have a good presence within the world of Defi do select them would be good and, more or less, move already significant volumes of both contracts and values.  They are all to be kept under observation, even for those who simply want to invest and care less about the technological aspect.

How can decentralized finance change the cryptocurrency market?

 The relationship between decentralized finance and the cryptocurrency market is for obvious reasons very close.  The question can be analyzed from different angles, to also understand which crypto project could gain from a further expansion of Defi, and to understand why the two concepts are often considered as direct synonyms.

Automatic exchanges

One of the most used applications already today and which integrates decentralized finance and cryptocurrency exchanges are decentralized exchanges.  Few themselves, which we have already talked about in this study, is in effect a decentralized exchange and allows the exchange of supported cryptocurrencies without the need for a central authority.  Time and costs are lowered and by choosing the right project we would have the same security that we find from the best traditional cryptocurrency exchanges.

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