DeFi, or Decentralized finance, is a wonderful project built to adapt to our fast-growing digital age. It is an open financial system aimed at cutting out the opaque, tightly controlled financial system held together by decades-old infrastructure and processes.
The launch of Bitcoin gave breath to all Blockchain projects today, including DeFi. DeFi lets you do most of the things traditional banks and centralized institutions offer, with new products and projects launched daily.
Many people are more interested in the concept of DeFi because of its benefits, which has resulted in building new projects with DeFi.
Different companies can work on these DeFi projects, but the most common companies that can work on DeFi projects are Blockchain companies. Why should you hire a Blockchain company for your DeFi project if you plan on building one?
This article will answer that question. But before will talk about that, let’s get a brief overview of what DeFi means and how it works.
What is DeFi, and how does it work?
DeFi is a general term for any financial service that gives users free access to carry out any form of financial transaction.
Decentralized finance DeFI, works on Blockchain technology that cryptocurrencies use and is built mostly on the Ethereum Blockchain platform.
The Blockchains are distributed ledger that works in a peer-to-peer format. Each transaction is like a block, and when new data or a transaction is initiated, it adds to existing chains of blocks.
Smart contracts are the building block of DeFi; it automatically processes transactions once the two parties agree on a particular transaction. This helped eliminate the idea of financial institutions acting as guarantors during financial transactions; as such, it solved the issue of trust and extra charges incurred by third-party.
Some characteristics of DeFi
Though Decentralized finance is basically built on the Ethereum Blockchain platform, other platforms, such as Coinbase, Solana, Binance, etc., allow transactions, trading and managing of Digital assets.
The enthusiasm to have decentralized finance devoid of third-party processes and easy accessibility by all was the driving force behind its invention in 2018.
Defi market is open 24 hours, and it has no centralized authority that can block payments or deny access to anything.
It offers a great opportunity to lend, borrow and even invest with the mind of making a profit which can help regulate inflation. It is launched on DeFi applications, giving users more control over their assets through personal wallets.
This allows asset owners to fix a competitive exchange rate on their own. The rate is considerable enough to capture a buyer’s interest because many sellers out there, and those with lower interest rates sell faster.
This makes borrowing interest rates far less than the old financial system. This establishes an entirely digital alternative to Wall Street, but without all the related overhead, which speeds up and lowers the cost of transactions (think of the office towers, trading floors, and banker salaries).
Financial markets that are more accessible to everyone with an internet connection and more open, accessible, and fair could result from this.
Why you should hire a Blockchain company for your DeFi project
To address client expectations, financial organizations are logically merging their crypto expertise. The majority of professions demand “hard skills” like knowledge of Java, machine learning, Python, AI, and C/C++.
These are software engineers and programmers who might create a Blockchain-based system that established businesses would have to adapt to.
However, not every Blockchain talent is tech-savvy. Legal and compliance specialists are in high demand because DeFi started in 2018 and is a brand-new frontier in banking and services.
Companies who want to provide long-term DeFi services must adhere to legal requirements. The organization could get assistance from experts in checks and balances during the process.
The demand for DeFi developers has risen as decentralized finance gains more and more traction. When you hire a Blockchain company, the time and stress required to screen engineers for the DApps project are saved.
Let’s now discuss some reasons why you need to hire a Blockchain development company for your DeFi project.
1. Reliability
Reliability is the foremost advantage of Blockchain development, especially in DeFi platforms. We already know Blockchain is immutable and purely transparent to its clients. Also, because of these factors, Blockchain app development has prolonged the technology’s existence.
Furthermore, it is known that no one can just change the rules of the Blockchain, and that’s how it remains integral or undamaged in its position.
Moreover, it can offer feasible solutions for various types of business issues lasting long term. Hence by this, it has become a reliable technology.
Because Blockchain companies hire the best pool of talent, the security and smooth working of the project are well assured.
2. Using the best resources possible
Blockchain companies use the best human talents and top software in the business and market to develop Decentralized apps. By working with a talent management company, the newest crypto and related commodities trends and technology are constantly in the minds of Blockchain agencies.
These companies hire the best developers from all parts of the world, and each developer’s work is thoroughly monitored to ensure the company maintains their good reputation.
When it comes to resources needed for the project, they can afford any software, computers and even the constant electricity needed for the project. Private developers may not be able to afford the best quality resources needed for the project.
They design Blockchains that encourage infinite transactions, meaning there are no restrictions on the quantity or number of transactions since they meet the requirement for endless transactions.
3. Saves time
For their Defi project and other Blockchain projects, Blockchain development businesses draw from a pool of competent programmers, which helps to save time.
A Blockchain needs thousands of lines of code and a combination of several different programming languages, including C++, Python, Solidity, and JavaScript.
Because Blockchain companies use a variety of employees who are professionals or experts in particular programming languages, the task can be divided among everyone according to their areas of competence. As a result, the project is finished on schedule.
For example, a single developer would take more than a month to complete a smart contract project. However, because the project is shared, it would take less time for Blockchain development companies.
4. Simplicity
Many people find Blockchain a complicated ecosystem; however, hiring a Blockchain company will make things easier for you. Every company in this industry needs to go through various stages to process or offer their consumers better solutions. However, Blockchain is responsible for shrinking down the different stages of processing just in a few steps.
Moreover, as technology can offer almost everything online, it has become much easier to maintain the quality of the project. Also, many Blockchain-based solutions companies exist within the market that offer user-friendly interfaces.
And they use complex codes to design something very easy and simple. For instance, Aave developers developed a Defi platform that allows borrowing assets and earning bonuses or rewards on deposits. Lenders and borrowers connect on the platform in a decentralized space to exchange commodities in a very simple and fast interface.
5. Security
Security is one of the most important advantages of Blockchain, especially DeFi. Blockchain technology utilizes advanced security features compared to other platforms or record-keeping systems.
Any recorded transactions usually need to be agreed upon according to the consensus method. Additionally, each transaction is encrypted and has a proper link to the old transaction using various hashing methods existing within the development process.
However, with this, the security of a particular project is also improved by the fact that each of the nodes holds a copy of the transactions performed on the network.
Note what a Blockchain company said about why you should hire them.
“With safety being our top priority, the system we build is corrupt-free. Also, we develop Blockchains which are accessible only by the members and are hence, tamper-proof.”
Blockchain’s big companies are well organized and have done a lot of Defi projects. This gives them the confidence to embark on any DeFi project due to the amount of experience.
Examples of DeFi projects developed by Blockchain company
The rising usage of Blockchain technology across numerous industries in 2020 propelled it to new heights. DeFi applications will undoubtedly reach even higher altitudes in the near future. We may anticipate that more sectors will utilize DeFi in 2023 onwards, given the amount of attention it has been receiving.
Blockchain technology has emerged as one of the most promising technologies to alter organizations after cryptocurrencies acquired significant popularity—especially DeFi industries.
Many large and medium-sized businesses are currently investigating the Blockchain’s potential to stand out in the crowded market. By 2025, the market for Blockchain technology is projected to be worth over USD 39 billion, with 56% of all investments coming from the United States alone.
Little weeks after the inaugural DeFi Market Cap announcement in early 2020, which estimated the total at just over $1 billion, the market cap for decentralized finance (DeFi) products crossed the $2 billion threshold in just two weeks. DeFi’s Market Cap is growing rapidly.
Many Big dev companies have contributed significantly to the DeFi success in just a few years of its invention. Below are examples of major DeFi projects and the companies that developed them.
Stablecomp
Stablecomp is the cutting-edge platform that simplifies the management of stablecoins, offering a secure income. Automated strategies maximize returns while keeping risk under control. The SCOMP governance token allows you to amplify earnings up to 8 times through the token vote escrow system. Users can optimize asset allocation with 1-year projections. SCOMP unlocks unique benefits: voting participation, boosted returns, access to protocol fees and insurance services.
Developed by the Blockchain software development company Scaling Parrots, leader in the sector in Italy, Stablecomp guarantees security and reliability.
Wealth Protocol
Wealth protocol is a crypto wealth management application used for DeFi services. It is the world’s first-ever comprehensive Crypto Wealth Management application.
The Wealth Protocol app allows users to track the performance of their cryptocurrency investments and provides detailed reporting to help them stay tax compliant. It makes it simple to assist you in saving money by taking advantage of any tax loss harvesting events that occur.
Conclusion
Decentralized finance – DeFi is one of the fastest-growing Blockchain applications in the world, which officially started in 2018 and was built on Ethereum Blockchains.
As discussed in this article, many companies have massively adopted the DeFi system and yielded profit. A lot more companies are seriously considering adding the DeFi platform to their services.
With the high security and level of traffic and income generated from DeFi projects, it is essential to hire a Blockchain company with many reviews from past work.
Using a company with great authority gives confidence and assurance that your objective or plan for the project will be actualized.
See you soon,
Scaling Parrots
