Everyone knows how frantic the pace of developments in the crypto space can be, especially in its arguably fastest-growing decentralized finance (DeFi) segment. Those who follow the industry must rely on in-depth research to stay abreast. Cointelegraph’s research unit has long been an industry leader in providing high-quality content for decision-makers.
Today, Cointelegraph has published a seminal report devoted to the future of DeFi. Fuse is proud to be Cointelegraph’s research partner for the Report alongside recognizable names in the industry, such as Brave, CasperLabs, Bitpanda, and Arcana Network.
Summary of the Report
The report covers the recent evolution of the DeFi industry and its possible future trajectory. It underscores that DeFi has now amassed around $250 billion in total value locked and is increasingly displacing traditional finance.
The Report mainly asks which blockchain networks are best positioned to attract DeFi user activity in the future. The Report begins with a discussion of Bitcoin’s role in DeFi. It notes that Bitcoin is in its current form, still not particularly suited for DeFi and NFT applications due to limited programmability, something which Fuse Network founder Mark Smargon, became cognizant of during his time working on the Coloured Protocol before the days of Ethereum.
The report then goes on to consider major smart contract blockchain networks. It mainly focuses on Ethereum and its main perceived competitors in the DeFi space, including Solana, Polkadot, and Algorand. The Report discusses the unique competitive advantages for each of those four platforms.
The Report concludes that although Ethereum is still ahead of its major competitors concerning the share of DeFi transaction activity, it needs to get its Ethereum 2.0 scalability effort right to retain its current position.
Fuse and the Report
Fuse has collaborated with the Cointelegraph Research team to help prepare and launch the Report. You can find a detailed one-pager summarizing the current state of Fuse Network and its growing ecosystem on page 34 of the Report.
Concerning the core topic of the Report, the Fuse team has always believed in interoperability as a core tenet of the public blockchain space. We do not believe that any single chain will in the future be completely dominant, nor do we consider Fuse to be in any way competing with Ethereum.
It is our view that while Ethereum faces challenges ahead, in particular concerning the transition to 2.0, the on-chain adoption metrics show no credible signs of slowing. Ethereum is, therefore, likely to remain very prominent in the blockchain space long into the future.
We also believe that the Fuse Network layer 1 blockchain’s role is to run alongside Ethereum and be laser-focused on its vital mission, providing scalable infrastructure and friendly user experiences to put technology and its benefits into the hands of everyday people worldwide.
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