DeFi by Woonkly
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DeFi by Woonkly

Woonkly’s Ethereum DeFi vs. Proposed Bitcoin DeFi

The good, the bad, and the ugly

Back in 2017, big promises were made about Ethereum banking the unbanked and solving various financial problems. The ICO craze set the focus away from the true potential of blockchain technology. Now, years have passed and while research is a WIP, we have found out pearls that can reshape the services we use on a daily basis — such as Decentralized Finance or DeFi.

Is DeFi Boosting Ethereum?

There were only a few projects that initially showed some light on the potential for developments on Ethereum, such as ChainLink, Kyber, or Set. Once the 2017 madness fades away, the speech on ETH was not quite straightforward for the masses. There was the need for a crystal clear explanation of what was going on with the Ethereum network — DeFi.

DeFi could have become mainstream by now with better marketing that any layman could understand instantly.

In late 2019, unlike today the DeFi community had only a bunch of enthusiasts. However, they were excited about the term “DeFi” — arguably the simplest way to explain the P2P finance app built on the ETH network that requires a web 3.0 wallet like Metamask without KYC to be used… too wordy?

Ethereum is a global, open-source platform for decentralized applications.

On Ethereum, you can write code that controls digital value, runs exactly as programmed, and is accessible anywhere in the world. — https://ethereum.org Homepage

The Ugly

  • ICO craze delayed the true potential of the technology for years
  • The initial marketing for Ethereum was not user-friendly

Now, we can simply change this narrative into:

Ethereum is Money.

In 2020, the enthusiasm about DeFi has skyrocketed. There are thousands of users in a bustling community that now involved several projects that have invested USD$ 4bn.

DeFi is your bank.

The good

  • The narrative is simpler than ever
  • Ethereum DeFi has a lot of momentum

This is simple language people can understand. Moreover, the new narratives around DeFi solve the — arguably — biggest marketing error in ETH history. Long gone is the time where we referred to ETH as “gas” or a P2P protocol. DeFi has clean washed the look and feel of Ethereum for good.

Is Bitcoin DeFi a Thing?

Bitcoin was the first cryptocurrency to be implemented and, as of today, stands as the #1 in market capitalization. Thus, DeFi on the BTC blockchain can drag investors and users in large numbers alike. However, the Ethereum network was developed for smart contract development and, thus, has an edge on the BTC infrastructure.

The bad

  • Late move towards DeFi compared to Ethereum
  • Most popular DeFi networks control a huge percentage of the dApp market

Although there is potential for DeFi on Bitcoin, it is yet unclear if the trend will change. Ehtereum is the preferred choice for developers. Traditionally, BTC was considered the more secure network, and the haven asset. But, now that the narrative about Ethereum is shifting, it is also considered a safe haven and not only a network to develop dApps. This is a game-changing change of mindset for the public in favor of Ethereum boosted by the 2.0 deployment.

Conclusion

According to StateofDapps, there are around 2.9k submitted apps running on Ethereum and a few tens in TRON and EOS. Considering ETH, TRON, and EOS, we account for +95% of the dApps market worldwide. Thus, Bitcoin DeFi would have a real challenge to compete with the leaders of the blockchain development industry. Woonkly operates in Ethereum providing excellent UX/UI for advertisers, influencers, and users.

Welcome to the true DeFi.

Written by César Patiño, PR Manager at Woonkly.

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