Why #DeFi Could be a $800Bn. Industry by 2023

Decentralized Finance or #DeFi is posed to explode 10x according to billionaire crypto investor Matthew Roszak by @Forbes. Here’s the Top 5 #DeFi Coins to watch that could be an $800 Bn. industry by 2023.

Since May 2020, TVL into platforms such as Maker, Compound, Uniswap and Aave has grown from $1 Billion to $88 billion at its peak. So where does DeFi go from there after growing 88x in 12 months?

This week’s Singular’s Crypto Quick Thought, we’re dive deep into these three #DeFi Crypto: UniSwap, Algorand and Chainlink with significant long-term growth potential

1.) Algorand ($ALGO)

Founded by Turing award winner and MIT professor Silvio Micali, Algorand (ALGO) is a next generation blockchain that uses a unique Pure Proof-of-Stake (PPoS) protocol, built on Byzantine consensus, to achieve fast transaction speed and near-instant finality without sacrificing decentralization.

Its core cryptography is centered on mathematical randomness, open participation, and voting: users are selected on a random and secret basis to propose blocks and vote on proposals. Thus, the blockchain is able to avoid centralization risk commonly observed in PoS systems which typically have a relatively small group of large (or whitelisted) validators.

That said, we believe Algorand have solved the “blockchain trilemma” of achieving speed, security, and decentralization simultaneously. 

2.) Chainlink ($LINK)

Chainlink is the first and largest decentralized oracle network that provides real-world data to smart contracts on blockchains. Without oracles like $LINK, blockchains are like computers without an internet connection.

Chainlink’s decentralized network of data providers and aggregators is not only nimble and scalable, but it also eliminates the chances of single-point failure in the delivery of data: a critical requirement as compromised data feeds can cause smart contracts to execute erroneously resulting in billions of values lost.

Chainlink’s technology touches all parts of blockchain technology (DeFI, NFT, gaming, DAO, Web 3.0, and so on), and will benefit from increased adoption and the potential growth of the crypto industry as a whole. We believe that no matter who wins the smart contract race, Chainlink wins.

3.) Uniswap ($UNI)

Uniswap ($UNI) is a leading decentralized crypto exchange (DEX) that runs on the Ethereum blockchain. $UNI utilizes an automated market making system (AMM) rather than a traditional order-book. Instead of matching individual buy and sell orders, AMMs utilize smart contracts to form liquidity pools of trading pairs (eg. BTC-ETH), with the price determined based on the ratio between the two.

Individuals can provide liquidity by supplying a pair of tokens to a liquidity pool in return for a portion of trading fees earned for that trading pair. With this system, a buyer or seller does not have to wait for an opposite party to appear to complete a trade. Uniswap also offers a way for investors to trade a vast variety of long-tail tokens unsupported by centralized exchanges (e.g. Coinbase, Binance).

Other DeFi Cryptos