What is DeFi DApps?
Decentralized finance (DeFi) acts as a revolutionizing technology that replaces traditional financial systems with automated finance infrastructure that does not involve any intermediary or central authority. Decentralized applications (DApps) in the context of DeFi serve the purpose of permissionless, trustless, transparent, and immutable blockchain infrastructure to manage financial operations.
Top 6 Challenges Faced By DeFi DApp Solutions
According to recent figures, the total value locked (TVL) of Decentralized Finance (DeFi) reached over $100 million in November 2021 and now it has sealed more than $39.5 billion. The past few years have transformed the finance sector by including high-end technologies streamlining business functions and processes. DeFi DApp development is one of the major use cases for the industry that eliminates intermediaries and reduces transaction costs.
Whether it be loans, investments, trading, or transactional processes, DeFi streamlines every function with enhanced transparency, security, and speed. Besides the multi-million dollar DeFi market, when it comes to developing DeFi DApps solutions, there are some pitfalls developers and businesses face.
In this article, we’ll look into some challenges of DeFi DApp solutions to help you acknowledge the difficulties while diving into the domain. Before that, let’s see what exactly is DeFi DApps.