📊 Decentralized Finance Market Outlook
Decentralized Finance (DeFi) is a decentralized blockchain ecosystem that makes available any financial products for anyone without having to go through middlemen or banks. Decentralized finance is the most tremendous industry of the blockchain and a new-generation business idea upon decentralization. It works as an independent peer-to-peer platform instead of a centralized institution that forwards and controls transactions.
From 2020, DeFi took a major run reaching over 11x growth in a single year and achieved a value of $81.85 billion. The number of unique addresses on DeFi platforms has massively grown from 250,000 users to 3,300,000 users in one single year making it the most promising blockchain built technology. This market is still in its early stages and institutional support has been a major helping hand.
Even though Decentralized Finance is an evolution of finance it still has one major problem, identities. Digital identity and access control will fix the major problems of the DeFi space. The lack of Know-Your-Customer standards and Know-Your-Business (KYC/KYB), results in heavily over-collateralized loans because no platform can assure any credit history to prove whether their users are reliable borrowers.
A hot topic across 2021 regarding cryptocurrencies is regulations. A founding principle of crypto is decentralization and anonymity but as much as people love decentralization high numbers of tax evasion, fraud, and scams have been possible due to cryptocurrency. Regulations would help the IRS report responsibility and track crypto tax evasion.
When using any type of digital service, people are often not aware of the extent to which the collection and use of their data are already taking place, so they are not always in control of their digital identity.
Decentralized Digital Identities give people self-sovereignty over their data, unlocking the full potential of Web3.0 applications. Vulos is aiming to be the one KYC/KYB platform across many platforms eliminating user problems and offering trust score evaluation, increasing the reputation of borrowers on many DeFi platforms, thus lowering the collateral for users with a higher trust score.
Vulos offers its Digital Identity services for Individual Uses (Peer-to-peer, Mobile and Remote Notary Public, Real Estate Agents, Brokers etc.), Business Uses (Insurance Industry, Healthcare Industry, Supply Chain etc.), Legal Services and Government sectors.