What is decentralized finance? Where did it come from? Is there anything worth remembering in the field of defi in 2020? Where will its future go? Here you will find the answers to the above questions.
Let's start from the beginning.Although there is no specific birth date for decentralized finance, some important historical events have made the emergence of defi possible.
Bitcoin
The first important event was Nakamoto's invention of bitcoin in 2009.
Whether bitcoin should be classified as defi or not, its birth is a key driving factor for the whole cryptocurrency industry, and decentralized finance is part of the cryptocurrency industry.
Bitcoin allows users to pay around the world in a decentralized way, and the payment field belongs to finance, so in my opinion, bitcoin can also be regarded as defi.
But most importantly, bitcoin supports the creation of Ethereum, which is the default blockchain for all top-level defi protocols.
Ethereum
Although it's cool for people to send bitcoin around the world, finance is more than that. Every sound financial system requires a range of other important services, such as lending, trading, financing or derivatives.
Bitcoin's language (called script) is relatively simple and limited, and it is not suitable for deploying the above applications. The limitation of bitcoin language is one of the most important factors that led vitalik buterin (V God) to create Ethereum.
Ethereum was launched in 2015 and quickly began to attract more and more developers who want to build a variety of decentralized applications, from games, such as cryptokitties, to financial applications.
With the stability of its Turing complete programming language and erc20 standard used to create new tokens, Ethereum has quickly become a smart contract platform that can be used to build.
