The growing world of cryptocurrencies became a honeycomb for investors and speculators. Over the last decade, space kept exploding and now the total marketcap of cryptocurrency space has touched $2,223,475,217,551. Recently, institutional investors also started investing in the space and many are now holding cryptocurrencies like bitcoin in the treasury. Apart from this, many opportunistic entrepreneurs who had been watching the space with great interest have started exploring blockchain technology and crypto development now. If you are one of those entrepreneurs, this blog is for you.
Services providers can explore the following four areas.
Decentralized Finance (DeFi)
DeFi or decentralized finance is one area in crypto development that holds tremendous potential. It refers to financial applications powered by blockchain that are trying to disrupt the traditional financial industry and replace it with a democratized financial industry.
Banks, the central government, and some big institutions control the current financial industry. This setup is heavily centralized and has human gatekeepers. Because of this, the traditional financial industry is suffering from challenges like transaction speed limits and the participants of this type of economy have almost no direct control over their money. On the contrary, DeFi expands the use of blockchain and uses it to makes it possible to decentralize more complex financial use cases like lending, insurance, and more.
A crypto development company can help entrepreneurs develop any of the below DeFi applications:
Decentralized Exchanges (DEXs)
Decentralized Exchanges are very hot nowadays that’s because the users can directly trade among themselves. They don’t have to trust any intermediary with their money. Some of the very popular DEXs are Uniswap, Binance DEX, and more.
Stablecoins are cryptocurrencies that are backed by a real-world asset like gold, oil, or a currency like US dollars, Euro, or GBP. This ensures the token has a stable price value attached to it and it can still benefit from the features of a cryptocurrency.
In a traditional financial set up only the banks or some approved platforms can lend money. Additionally, not everyone can borrow money. The borrowers need to prove their credibility and produce many kinds of documents to get a loan processed.
On the contrary, DeFi is enabling the creation of an open financial system. In DeFi, the intermediaries are replaced by smart contracts that automatically managed the lending borrowing processes. Additionally, these allow anyone to become a lender by being a liquidity provider. Also, anyone who can meet the collateral criteria can borrow money.
A cryptocurrency development company can help develop prediction markets on the blockchain. The users can bet on the outcome of events like sports, elections, or more. As these are also run by smart contracts, there are no intermediaries, and the process becomes more transparent and cost-effective.
DeFi has also introduced some revolutionary concepts of DeFi that have expanded the moneymaking capabilities for both users and entrepreneurs. These are yield farming, liquidity mining, composability, and money legos.
Non-fungible token development
The non-fungible token gold rush is not just a passing crypto trend. That is because NFTs are finding unique applications across multiple sectors. With the NFT market expanding aggressively in 2021, many entrepreneurs are connecting with cryptocurrency development services to create NFT marketplaces, minting platforms, creating licensed collectibles, digital works of art, digitizing certificates, and more.
Currently, cryptocurrency development services providers are building NFTs on ERC-721 and ERC-1155 standards. What makes each NFT token unique is the unique metadata that it stores about the object recorded in its smart contract. These NFTs are transferred to different owners using a smart contract and one requires dedicated marketplaces to trade these NFTs. Some of the very popular NFT marketplaces are OpenSea or Rarible.
Did you know that the price of Ethereum has quadrupled since the beginning of 2021? The credit goes to DeFi and NFTs as these two sectors are primarily running on Apps built on Ethereum Network.
Thus, is evident that DeFi and NFTs are the future of the crypto market. If you are an entrepreneur who wants to explore the blockchain space, connect with our strategists who will help you understand how you can embrace the technology. Antier Solutions houses a team of expert developers who can then transform your idea into a reality.