Summarising Decentralised Finance
Now we have seen the potential opportunities that Defi provides within cryptocurrencies, such as providing traditional banking services with the added advantages of smart contracts operating on the blockchain. Defi also allows for projects such as Terra, which is a warning that the ecosystem is not risk-free; however, these seemingly Ponzi scheme projects should incentivise us to gather as much information and knowledge about Defi and know what projects to invest in for the future. Scallops mission is to integrate the innovative and utility based Defi protocols into its ecosystem.
Question 6: Why does the Ethereum blockchain support Defi capability in comparison to the Bitcoin blockchain which does not support Defi?
Answer: The Ethereum blockchain supports smart contracts and dApps which creates the possibility of traditional banking on the blockchain which is Decentralised Finance (Defi).
Well done for completing this section, up next we learn about Scallops very own exchange and how you can get stated with trading...