You’ve heard of Decentralised Finance (aka DeFi), the crypto-sector where most coins involved have surged parabolically in very short periods of time. Some assets with real utility such as LEND, COMP and SNX and other meme-based such as Yam and Based. This sector is going through its boom cycle and almost anything it has touched has turned to gold.
The majority of this activity is occurring on top of the Ethereum blockchain, which has caused lag and sky-high fees given that ETH2.0 (“faster version of Ethereum”) has not yet been released. A decentralised exchange, Uniswap, alone was responsible for over 17,500ETH in fees in the last thirty days; that’s over $30,000,000 just to process transactions.
Algorand is a newer blockchain that also supports smart-contracts and now with their latest upgrade, the blockchain has the capability to enable the creation of DeFi solutions. The key point is that fees would be negligible which have been one of the major barriers alongside UX that definitely requires further development. The founder of Algorand, Silvio Micali, stated: “Algorand’s protocol serves as a solid foundation to power truly frictionless applications, and our approach to smart contracts makes them high-performing and functionally advanced enough to rival today’s existing financial services.”