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Next-Generation Layer-One Blockchain Protocols Remove the Financial Barriers to DeFi and NFTs

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Blockchain technology has emerged as a revolutionary force for change on the global stage over the past decade as Bitcoin has risen from being shadowy internet money used by criminals to an accepted form of legal tender by governments in countries such as El Salvador.

While the applications of distributed ledger technology (DLT) are vast and widespread, its potential to help reconfigure the global financial industry offers perhaps the most transformative opportunity in a world where more than 1.7 billion adults are classified as unbanked.

The creation of secure layer-one blockchain protocols capable of hosting smart contracts such as Ethereum has allowed for the emergence of decentralized finance (DeFi) and the explosion in popularity of non-fungible tokens (NFTs), but their rising popularity has been a double-edged sword as increased use of the top networks has led to skyrocketing transaction costs and slow processing times.

Many proponents of some of the first and second-generation protocols including Bitcoin and Ethereum often frequent reassurances that developers have made significant progress in addressing these recurrent issues, but the fact that the same problems continue to arise during each bull market suggests that newer generation blockchain protocols offer the best solution to these longstanding difficulties.

Some of the new blockchains like Fantom have been gaining a wider adoption in recent months as suitable alternatives to Ethereum because of their inclusivity and easy onboarding experience. Thanks to the layer-one solutions, users who are not familiar with the new technologies and users who can’t afford hundreds of dollars for every single transaction can now start using........

© Entrepreneur

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