Third generation blockchains will compensate for the defi-slack left by Ethereum-op-e-eD

with the ETH 2.0-upgrade still months after a complete start of blockchain protocols of the third generation quickly, To discharge Ethereum as a "go-to" hub for Dapps and Defi.

Blockchain metamorphosis to catalyze future defectism

Although many people may have only recently discover it, the blockchain technology has been around long enough to have passed from the first to the second and now to the third generation protocols.

The first generation blockchain began with Bitcoin, an proposed alternative to the hegemony of centralized financial services. It laid the foundation for a decentralized financial ecosystem, but the Bitcoin network offered limited functionalities, required immense computing power for the operation and suffered from a serious lack of interoperability.

This led to the emergence of Ethereum in 2015 and marked the beginning of the second generation of blockchain protocols. When Vitalik Buterin introduced the Smart Contract functionality in the blockchain, this triggered a paradigm shift that enabled cryptocurrencies to switch from financial instruments to a more practical purpose.

The problems of Ethereum are piling up on

Ethereum opened the door to decentralized financing (Defi) by enabling the "conditional transfer" of data and added value in the chain. Since then Ethereum has been in a role-playing game and cemented as a platform for the start of DAPPS, NFTS and Defi protocols.

developers and users accepted Ethereum and began to generate their own ERC20 tokens, so much that the social media platforms started to talk about "The Flippening"-where eth would overtake btc regarding market capitalization.

Vitalik Buterin, the creator of Ethereum, has also commented Doubt about the scaling ability of Ethereum , i.e.

scalability [Currently] sucks; The blockchain design basically relies on bottlenecks in which individual nodes have to process each individual transaction in the entire network.

While the proposed Ethereum 2.0-upgrade promises solutions for the current problems that the Ethereum network cloudy, things have not progressed as planned. Originally planned for a rollout in 2019, the first phase of ETH 2.0 started in December 2020. Publication before 2022.

Therefore it is not exaggerated to say that the network has a long way to do until it can realize its core vision to become the "decentralized computer in the world".

Here are records of the third generation

Despite the innovations of Bitcoin and Ethereum, the chains are plagued by their respective scalability and efficiency problems. At the same time, both networks require significant computing resources for the company. All of this has led to an eternal cycle of painfully slow throughput rates and too high costs.

Many Layer 2 scaling solutions were developed to overcome the inherent problems with Bitcoin and Ethereum, each of which is different. Layer-2 solutions have tackled the interoperability and scalability problems to a certain degree, but the core problems in connection with consensus mechanisms and mining still have to be tackled.

Here's third generation blockchains come into play. While some third-generation protocols can add existing blockchain networks, others are completely new blockchains that have a wide range of functions and functions. From multi-layer architectures to innovative consensus mechanisms, the third generation blockchain protocols are not only able to solve scalability problems immediately, but are also highly interoperable, quick and cost-efficient.

It cannot be denied that the defi boom is due to Ethereum and that Ethereum is still dominating the defi market. However, if new DEFI projects come into play based on the third generation blockchain protocols, the authority of Ethereum is undoubtedly questioned.

because Defi is expanding its market, the next “defi boom” will most likely come from emerging chains that are more agile and focused than earlier blockchain network innovations. However, promising projects are pending for newer blockchains, as the cryptoversum lays the table for the "next big flippen singing".

The battle for Defi: with Cardano, Solana and Polkadot

When it comes to market dominance, Cardano, Solana and Polkadot are leading. Each platform offers a number of functions, which is why a consortium of new projects is compiled to build their ideas on these chains.

For example, ardana , cardanos stable coin and defi hub, enables Cardano to expand into the defi landscape. The platform and its constituent protocols were developed from a defi macro perspective to offer users the necessary functionalities in order to maintain all kinds of decentralized economies in the Cardano chain. It will act as a basic financial layer and support the decentralized economy of Cardano by using historically proven protocol models for mergability, capital efficiency and stability.

As part of his strategic roadmap, Ardana will soon bring Dusd onto the market. This verifiable stable coin in the chain, which is secured by collateral, helps the users to work their ada and other supported assets. The platform will also introduce your AMM-Dex (decentralized stock exchange), Danaswap, for stable multi-asset pools. According to the ARDANA team, Danaswap will offer capital-efficient swaps and at the same time aim at minimal slippage and enable liquidity providers to use low-risk chances of return.

Another ambitious initiative that has stopped Ethereum is Acala , the defi-liquidity hub, which the integrated functions of the blockchain protocol of the third generation uses. At the moment, almost every stablecoin is built in the Ethereum network, which limits acceptance and use. Acala wants to change this reality by using the speed, cross-chain interoperability and cost efficiency of Polkadot to offer a defi hub with integrated liquidity and prefabricated decentralized financial applications.

Likewise, Acala claims to handle transactions for a fraction of what other networks need, and thus builds up a quantitative lead in the defect race. The platform will support microga fees, which are only slightly influenced by the transaction complexity by the weight -based fee model of Polkadot. In addition, Acala will also introduce an "algorithmic risk adjustment", which automatically changes the risk parameters in its credit and credit bracket protocol, including interest rates and security rates.

Finally, in this persistent war for market shares, atani , the all-in-one-krypto trading platform, which is based on the blockchain network of Solana, is another heavyweight candidate that needs to be monitored. The platform offers free crypto trading tools and has come together with top exchanges such as Kucoin, Binance, Okex, Bitfinex, Polonieex and more to offer users lower trading fees.

Atani recently introduced its new Dex aggregator on Solana to provide order routing functions and at the same time offer add-ons such as portfolio tracking, price alarms, technical analyzes and more. With this aggregator and the embedded qualities of Solana, Atani's plan is to reduce the friction between the fragmented defi ecosystem, to provide the liquidity of CEXs (centralized stock exchanges) and Dexs for the Solana ecosystem and at the same time to ensure multi-chain support.

along the street

We haven't really scratched the surface when it comes to exploiting the true potential of defi. Web 3.0 grows and the global village is getting much smaller. At the same time, defi services are so revolutionary for both the global non-banks and for the lower banks that they need more space for their expansion, as well as existing protocols move the limits of network capacity.

From an impartial perspective, Polkadot, Cardano, Solana and several other third generation blockchain platforms offer the urgently needed solutions for scalability and interoperability that have hindered the legacy chains. They are faster, safer, more cost-effective and have a low resource consumption, which means that they are positioned as all-in-one solutions, from which the entire cryptocurrency industry largely benefits. Since the debut of Ethereum 2.0 is still in the distance, the third generation blockchain protocols are already here to do the difficult work and to raise the definition to the next stage.

Which network will you think will win the defi race? Let us know in the comment area below.

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