The report also defines a DeFi as follows:
“An ecosystem comprised of applications built on decentralized networks, permissionless blockchains, and peer-to-peer protocols for the facilitation of lending/borrowing or trading with financial instruments.”
The ecosystem claims to provide a permissionless, decentralized network for clients, who supposedly hold total custody of their digital assets.
As per the report, the fundamental block of this ecosystem is made up of lending and borrowing platforms that back blockchain assets.
One of the main pairs of blockchain assets utilized on DeFi, for instance, is the token MakerDao (MKR) and its affiliated stablecoin Dai (DAI).
The document also contends that the origin of a majority of Dapps is the Ethereum platform as it is the largest smart contract blockchain platform based on market cap. However, some crypto specialists believe that the arrival of EOS may result in a change in this scenario.
In the recent past, ConsenSys, the New York-based blockchain startup, has issued a document named “Blockchain and DApp Developer Job Kit” to aid likely coders planning to create DApps in Python, JavaScript, or Solidity and deploy on the Ethereum blockchain.
The blockchain/DApp kit elaborates on main topics such as smart contracts, consensus algorithms, security incentivization, miners, scalability, token standards, private and public key encryption, digital signatures, trusted execution environments and zero knowledge proofs.