DeFi services are exploding, but they are faced with low-performance issues.
Centralized traditional services remain, on the other hand, faster and more reliable.
Glitch is a new blockchain protocol that will provide the infrastructure needed.
It seems DeFi keeps growing despite deficient networks. Decentralized Finance (DeFi) has exploded in the last few months. It was a giant waiting to wake up.
It has to do, mainly with the fact that people are discovering that trading cryptocurrency pairs is not the only (or the quickest) way to make a buck through blockchain technology. The term (DeFi) refers to a group of blockchain-based technologies that provide financial services without central monetary authorities (exchanges, brokerages, or banks).
The blockchain concept first appeared as the technology that the Bitcoin network uses to keep the ledger safe and current. The Ethereum changed the game by turning the same idea into a programmable platform capable of supporting decentralized applications or smart contracts.
The Ledger Carrier Became, Essentially, an Operating System
Current decentralized applications and financial services are built upon those blockchain-based operating systems. Ethereum remains the world’s powerhouse in this regard, but it’s not without problems.
The transaction processing rate is relatively slow (about tens or dozens of transactions per second). It can perform at even lower speeds if the network is heavily loaded, as it has happened in the past. Scalability is a problem that Ethereum’s leadership has been addressing sideways for a long time, and it’s not solved yet.
The slow performance puts decentralized exchanges at a disadvantage compared to the traditional centralized financial services, which can manage tens of thousands of transactions every second. So all the advantages inherent to decentralization in finances become almost irrelevant when the available performance is so deficient.
If decentralized financial services are ever going to challenge the centralized ones for world domination, there must be a different blockchain operating system that is both much quicker and highly scalable so that it can keep up with the competition. This new system can benefit every activity that runs on the blockchain, but most benefits would go to the financial sector.
Glitch: The Answer to Everybody’s Prayers
The new network should be able to handle millions of simultaneous users without losing any of the high-quality user experience. Latency times must be low, and the network must also be free so that adoption expands quickly. And that is what Glitch aims to be.
Glitch is a brand new blockchain-based operating system built to host dApps for the money market and DeFi. Unlike most other blockchains of this kind (Tron, Ethereum, Cardano, etc.), this new operating system does not want to be an all-purpose solution for developers but rather a new OS that is focused solely on financial applications thus providing a solution to all the challenges described in the preceding paragraphs.
It’s all about providing a necessary tool that has been missing so far from the crypto-sphere. The idea is to provide low entry barriers for users and developers alike so that their products and services can extend beyond their current user base. In other words, the new OS’s goal is to promote adoption.
If Glitch succeeds in its ambitions, the blooming DeFi industry can have, at last, an infrastructure that can give it the ability to perform in a way that it can compete with centralized systems. That would be nothing short of revolutionary.