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Note: This post has been written by a WazirX Warrior as a part of the “WazirX Warrior program“.
A new movement is pumping oxygen into the cryptocurrency industry despite asset prices that remain 75% lower than where they were in late 2017 (The graph below shows the total market cap of Altcoins). It’s called DeFi, short for decentralized finance—it’s the notion that crypto entrepreneurs can recreate traditional financial instruments in a decentralized architecture, outside of companies’ and governments’ control. And with fresh allegations of misused funds against the centrally controlled cryptocurrency tether, the argument for decentralized applications has become even more relevant.
“The goal of DeFi is to reconstruct the banking system for the whole world in this open, permission-less way,” says Alex Pack, managing partner at Dragonfly Capital, a $100 million crypto fund. “You only get that shot every 50 years.”
Bitcoin and Ethereum are the original DeFi applications. Both are controlled by large networks of computers, not central authorities. Many investors use bitcoin like gold, as a store-of-value investment that protects against inflation, while Ethereum has been instrumental—and controversial—in helping startups crowdfund their operations.
But newer apps are dominating the DeFi conversation
SHANGHAI–(BUSINESS WIRE)–At the 2020 Global blockchain Eco-Conference hosted by Alchemy Pay, Justin Sun, the founder of TRON, delivered a keynote speech entitled “The DeFi Boom and TRON’s Road to Advancement”.
In his speech, Justin Sun said that TRON has surpassed Ethereum to become the most prosperous public blockchain. In response to Ethereum’s network congestion and high gas fees, Sun noted TRON has been gearing up for DeFi since early 2020 and is expected to revitalize the market.
As on today, the Ethereum gas price is at all time high and constantly increasing compared to its previous years. Last time market experienced high gas price was in Aug 2015.
Early in July, Tron founder Justin Sun announced the launch of three Tron DeFi projects, including a “JUST Lend” credit platform.
Justin Sun, recently published a three-part announcement on Twitter, stating that TRON’s new JUST DeFi team will soon launch 3 DeFi products.
JUST Lend will be a place where TRON users can borrow assets against collateral and earn interest. JUST Swap will act as a decentralized protocol for token exchange, while JUST BTC will be TRC-20 token, which will be backed by Bitcoin. Each JUST BTC will be backed by 1 BTC, with its value being the same as that of BTC.
The second part of the announcement included a few details about the new JST token, which is to become the core token of the TRON DeFi sector.
To achieve deeper inter-chain connectivity, TRON and Waves will cooperate on multiple collaboration and integration mechanisms:
The announcements made by TRON to enter defi space had significant positive impacts on TRON’S overall market performance. Below is what TRON foundation tweeted on 24th Aug 2020.
With a brand new announcement on Aug 31, 2020 – Tron CEO Justin Sun and his team are in the midst of creating what they call “the bitcoin” of Tron – a new DeFi meme token called SUN. Refer to open letter by Tron foundation to its community.
Following Justin’s announcement, the Tron’s native token TRX stands out as one of today’s top performers in the crypto market. With Market Cap of $ 2.03 B, TRX is currently ranked at 14 among all other cryptocurrencies.
Despite the attempts at gaining a share of the DeFi market, however, industry observers have previously told Cryptonews.com that dethroning Ethereum will be difficult due to the network’s first-mover advantage and massive network effects, while also noting that a transition to ETH 2.0 may enhance its dominance even further.
Further, the sometimes controversial TRX CEO added that the new project is “a genuine effort to allow a community to govern itself,” while also calling it a “grand social experiment, where everyone participating in Genesis mining will become part of the community and help guide its future.”
WazirX Warrior Author: Jay Tanwar
