Скачать или смотреть NEXT GENERATION SMART CONTRACTS FOR THE DEFI WORLD

Decentralized Finance is the fastest growing sector within the global blockchain ecosystem, yet it’s still nascent and has much-untapped potential. An increasing number of developers are producing sophisticated dApps (decentralized applications) for various financial use-cases, seeking to create an alternative to existing financial services. These use-cases range from simple transactions (ie, peer to peer payments) to much more complex and multiparty applications such as loans, asset trading, insurance, exchanges, asset tokenization, and more.

The financial industry bases most of its activities on traditional contractual agreements, which often involve trusted third-parties to validate the fulfillment of terms outlined in the corresponding paperwork of the agreement. This method is outdated, slow, and, most importantly, not cost-effective for today’s financial institutions. Algorand’s smart contracts are basic lines of code that are stored on a blockchain and automatically execute when certain conditions are met, enabling developers to build dApps that are highly scalable, secure, and low cost to execute. An essential tool for all blockchain developers, smart contracts have accelerated the adoption of blockchain technology and contributed to the increasing momentum of the DeFi industry as a whole.

Unfortunately, DeFi developers are facing many challenges with existing smart contracts options that prevent many of their dApps from gaining mainstream adoption:

High Execution Costs: The fees needed to interact and execute smart contracts on legacy networks are very high, often putting the economic viability into question, and creating a barrier to entry that undermines the security of the blockchain by incentivizing bad miners
Scalability & Speed: The first generation block consensus times remain quite slow and also suffer from regular forking, making it impossible to scale to millions of users, since the slow transaction speeds cause congestion and fuel a lack of trust in the network
Security Issues: Legacy smart contracts have a number of bugs that can put assets in a smart contract at risk

For DeFi to be welcomed into mainstream adoption and become an alternative for real-world use cases, it has to solve these issues. Otherwise, DeFi will stay on course for being a fringe use case of the financial industry and will be known simply as an experiment rather than a legitimate ecosystem.

To advance ahead, DeFi needs a next-generation open-source, permissionless blockchain that has solved the blockchain trilemma of being decentralized, scalable, and secure with a foundational network that has the built-in transactional speed and low fees to power real-world use-cases. Algorand has become that de-facto platform for many developers and is gaining traction with many dApps being built within 1-year of the MainNet launch.