Today, we’ll look at the 3 reasons why right now is the best time to build a Decentralized Finance Application(DeFi App or DApp). We constantly talk about business, startup, and crypto on our blog and YouTube channel. So it’s about time we start to look at how we can bring together the opportunities in the crypto world in favor of entrepreneurs to build revolutionizing technologies.
The first reason we think now is the best time to build DeFi apps is that we can now see some mature technologies. These advanced technologies are making it easier to build on top of cryptocurrencies. So, the blockchain as we know it, has been improving over the past years. So we had Bitcoin, which was the first generation blockchain that proved the potential of cryptocurrencies. It was basically the pioneer for the concept that cryptocurrency is something that can sustain.
Then, we saw the second generation emerge through Dash, Ethereum, and other similar coins. Ethereum is more of a mainstream cryptocurrency now and it’s the most popular second generation crypto. Dash is another example, although it has faded a little bit into the background.
As we started advancing through the years, the second generation crypto started showing its weaknesses. Some of these concerns are the gas fees, the proof of work vs proof of stake system, and such. And as these downsides started becoming more and more of a problem, we’re now seeing the third generation cryptocurrencies come forward.
As the third generation crypto, we can see Cardano, which we believe is the dominant player in the crypto space, Solana, and lot of other coins. We’re seeing even the people who helped make the second generation cryptocurrencies develop the third generation. Cardano is a great example, whose founder was a co-founder of the second gen crypto Ethereum. So we have a bunch of new, advanced, and easy technologies to build on these days. And we must take advantage of these as there’s still a huge pool of opportunities hiding in the crypto world. Learn more about the potential of Cardano becoming the next Bitcoin!
The second reason is the low cost of the third generation cryptocurrencies. Cardano, for instance, is an easy one to get involved with. The cost is low, the transaction fees are low, and that ultimately brings a lot of the ability for you to dive in even as an entrepreneur. If you’re an entrepreneur and you wanted to build of the second generation cryptocurrencies, it would be way too expensive. The dev work on Ethereum alone will be tens of thousands of dollars, whereas development on Cardano would be only a fraction of that cost. And here are more reasons why we believe Cardano is better than Ethereum.
So, with some of these third generation blockchain technologies that have a very low cost, it brings that entry bar extremely low for entrepreneurs.
Finally comes the speed and functionality of these networks. Although it kind of goes into the first two, the advancement with the third generation really makes the first and second generation cryptocurrencies really not realistic to build technology on top of. And some of these decentralized applications, DeFi or DApps, are really struggling to build on these first and second generation platforms like Bitcoin and Ethereum respectively because of the speed.
Although Ethereum is faster than Bitcoin, they’re both nowhere near the speed and functionalities of the third generation currencies like Cardano.
That marks everything about why now is the right time to build DeFi apps. We highly encourage you to follow our blog and YouTube channel as we constantly work to give you the latest updates about the potential and news of the crypto world.
And we’re going to be announcing our new DeFi app next week. We are hard at work on it, and I believe it’s going to make it even easier for developers and entrepreneurs to be able to build on blockchain technology. So people who have ideas around blockchain, this will make it the easiest way that you can do to get in on the ground floor!
Thank you for sticking with me to the very end. We hope this has been valuable information to your journey to skyrocketing with Ada. You can keep track of our blog or YouTube channel to stay updated about Cardano every day. And as always, make sure to keep your kids protected with CleanRouter and CleanPhone. This lets you have the ultimate parental controls with how your kids use their phone 🙂
If you’d like to learn more about the right time to build DeFi apps, kindly check out the video below:
Spencer Thomason is the CEO and Co-founder of CleanRouter, as well as many other products.
2021, SCEZ
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