2020 was a huge year for the introduction of blockchain. Some of the world’s largest financial institutions bought or built cryptocurrencies into their business model. It was also a historic year for decentralized finance (DeFi), the total value of which rose from less than $ 1 billion in early January 2020 to nearly $ 15 billion. As this technology matures, more and more global companies are beginning to understand the impact blockchain technology can have on improving the usability, transparency, and affordability of their platforms.
TransferWise, an online money transfer service based in London, may not have a blockchain built into its platform yet. However, this does not mean that the company’s founders are not interested in the technology. Valued at over $ 5 billion and employing over 2,000 people, the founders of TransferWise have a deep understanding of what a platform needs to be successful with international money transfers. TransferWise was co-founded by Taavet Hinrikus, a World Economic Forum technology pioneer and digital agenda advisor to the Estonian Prime Minister, one of the world’s most widely accepted countries for blockchain technology. Prior to starting TransferWise, Hinrikus was Skype’s first full-time employee as Director of Strategy. For someone so successful in the finance and remittance world, a blockchain project would need to offer consumers real, underlying value for Hinrikus to consider investing.
Hinrikus has made investments in a variety of high tech sectors such as ridesharing and femtech, but also selected investments in the blockchain space. One of Hinrikus’ investments is Radix, a public, decentralized ledger designed to make it easier to build and run decentralized applications. On the Radix platform, developers and users can experience lightning-fast interactions and transactions without having to forego decentralization or security. With a proven ability to process 1.4 million transactions per second, Radix can claim to be the most efficient decentralized ledger platform for DeFi applications.
How Radix Improved DeFi
DeFi was catapulted into the mainstream this year, with decentralized exchanges like Uniswap generating some of the highest transaction fees of any blockchain platform. Decentralized financing offers a range of financial services that previously had to be regulated and operated by third parties, e.g. B. the exchange of financial assets, insurance, loans and borrowing. Decentralized applications that offer instant transactions and services to anyone who needs them have begun to revolutionize the financial industry, removing power from third parties who traditionally served as gatekeepers.
Although the concept and fundamentals of decentralized finance are strong, there are still many bottlenecks holding it back from wider adoption. Some of these factors are the high transaction fees and the slow transaction speeds. Radix has developed a platform that it believes completely negates these aspects that detract from DeFi’s usability. As someone investing in potentially revolutionary technology that can fundamentally change the way an industry works, Hinrikus’ interest in the Radix platform comes as no surprise. His experience as a consultant for Estonia’s digital agenda underscores his knowledge of blockchain technology. For Hinrikus, the Radix platform is one way of realizing these applications.
DeFi without the cons
Some of the most talked about “Ethereum killers” can’t compete with Radix in terms of long-term scalability and throughput. Even platforms valued at billions of dollars are forced to compromise when focusing on increasing scalability while trying to maintain decentralization. Radix has created a platform that effectively scales, remains decentralized, and dramatically lowers transaction fees. These factors forced one of the world’s most successful tech entrepreneurs to invest in the project.
Many others are starting to see the writing on the wall: These decentralized platforms can completely change the way the financial industry works on a fundamental level. For decentralized applications to reach their full potential and provide users with a viable alternative to current infrastructure, DeFi must be able to deliver the same speed and ease of use while remaining independent of third party control.
Compared to other decentralized application platforms such as Cosmos and Polkadot, which aim for 4,000 and 3,000 transactions per second, respectively, Radix blows these “rookie numbers” out of the water. Taavet Hinrikus understands this and as Radix evolves, the smartness of its investment will come into focus.
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