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This article was originally written by Carl from IPFS Force Zone In the first half of 2020, the impact of the epidemic caused the world to suffer from a liquidity shortage. Investors chose to sell stocks, bonds and other assets to cash out, and the cryptocurrency market also suffered a panic sell-off, with Bitcoin falling to $3,000 at one point. After "312", with the gradual implementation of quantitative easing policies in countries around the world, the market has gradually recovered and recovered. As prices continue to rise, the faith of digital asset enthusiasts is gradually returning, and the two most discussed hot topics are DeFi and Filecoin. DeFi stands for Decentralized Finance. Compared with banks, stock exchanges and other centralized financial service platforms, DeFi has the characteristics of being borderless, protecting asset security, and saving costs through decentralization. Will DeFi ignite the digital asset market? Finance is the easiest direction for blockchain to land, and the deposit interest rates of DeFi applications are relatively considerable. Hoarding coins can also generate income, which is very attractive to long-term believers and wool parties. Since Compound launched its governance token liquidity mining on June 15, liquidity mining has instantly become the hottest topic in the blockchain circle, and more and more projects have jointly detonated the entire DeFi market with liquidity mining. According to DeBank data on July 20, the total locked amount of Ethereum DeFi exceeded 3 billion US dollars. The global money supply is driving the overall rise of financial assets. Bitcoin once again broke through $10,000, and ETH rose by more than 30% in a week. As a result, blockchain media began to hype DeFi, claiming that DeFi detonated the digital asset market and became the engine of the bull market. But is this really the case? Is it a bubble or a real bull market? DeFi has indeed played a role in boosting the current market, and its development prospects cannot be underestimated. However, if DeFi is regarded as an important support for the launch of this round of bull market in the digital asset market, it is still too thin. After all, DeFi still has certain bottlenecks: Poor user experience. DeFi is highly open to users and has no threshold restrictions, but because DeFi products still have many defects, the products are not mature enough, and the general users have a low level of knowledge about blockchain, etc., it will lead to poor user experience. Low liquidity. Take the stablecoin MakerDAO as an example. On March 12, the market plummeted. Because the liquidity was too low, the debt positions of the collateralized stablecoins were in a position of liquidation (i.e., insolvency), which triggered the auction of MKR and resulted in many cases of selling collateral assets at a low price. Limited application scenarios. At this stage, the actual application of cryptocurrency is still subject to great restrictions and the technology is not fully mature. The application scenarios of macro blockchain are limited, and the application scenarios of DeFi are also limited. Therefore, technological breakthroughs and actual implementation exploration are two key points. Security of smart contracts. DeFi is in its early stages of development, and the smart contract code is not mature enough and can be easily attacked by hackers.
The above problems have not been solved yet. At present, DeFi is more of a supplement to centralized finance and can only meet the special needs of niche users. In addition, as the development direction of blockchain finance, DeFi has a very limited role in promoting the overall blockchain landing in various industries. To promote the real arrival of the bull market, DeFi also needs a powerful ally, namely Filecoin, the leading project in the field of distributed storage. Filecoin - an important cornerstone for blockchain implementation As a blockchain project based on the IPFS protocol, Filecoin was created by Protocol Labs over three years with the aim of building a safer, more open and more economical distributed storage network. The most admirable feature of blockchain is that it ensures the security, transparency and immutability of valuable data through trustlessness. The birth of Bitcoin directly hits the pain point of cross-border payments and also allows people to see the potential of blockchain. However, blockchain itself cannot carry large-scale data. For example, the capacity of each Bitcoin block is only 1MB, which can be filled with a single file, not to mention the huge amount of commercial data. The expansion of block capacity will increase the burden on nodes, which is also an important reason why major blockchain projects have not been implemented. Filecoin's distributed storage network not only makes up for the shortcomings of centralized storage in terms of security and privacy, but also plays a vital role in promoting the development of the blockchain industry, providing a new solution for blockchain data storage. For example, traceability projects can store traceability data in the Filecoin network through smart contracts, and public chain projects can also achieve interoperability with Filecoin network data through cross-chain methods to promote commercial implementation. Summarize From Bitcoin to Ethereum, from public chain to cross-chain... the essential logic of blockchain investment is to pursue a larger-scale business ecosystem, and the market valuation comes from expectations for the future. DeFi has become a hot topic at this stage because it has the greatest expected landing. Based on the investment logic of blockchain, it is not difficult to find that Filecoin, which is approaching the main network time, will carry the expectation of a larger-scale landing of blockchain in the next few years, or will trigger the next round of market conditions. Statement: This article is an original article from IPFS Force District. The copyright belongs to IPFS Force District. It may not be reproduced without authorization. Violators will be held accountable according to law.
Tip: Investment is risky, so be cautious when entering the market. This article is not intended as investment and financial advice. |
