Future of dough: insight into AAVE (AAVE) and Bitcoin (BTC)
As the world moves towards decentralized financing (Defi), the two most widely used cryptocurrencies, Bitcoin (BTC) and ETHEREUM (ETH), were at the forefront of the revolution. One of the most important aspects of Defi, which has received considerable attention, is the recording that users check the blockchain network transactions without mining them directly. Not only did this practice attract new participants to the cryptocurrency space, it also raised fundamental questions about the long -term viability and scalability of posture. This article includes insights from Aave (AAVE), one of the pioneering Defi platforms and Bitcoin (BTC) to understand the current state of the situation.
What is your seat?
Storage includes users to close cryptocurrencies for a longer period of time, allowing them to participate in the validation of transactions on the blockchain network. This process encourages validators to control transactions, ensuring the integrity and safety of the network. This gives the lawyers a stake in the block reward, which can be converted into new coins or used as a fuse.
aave: pioneer in Defiben
Aave is one of the most popular Defi platforms launched in 2018 by Youssef Gamou and Anthony di Iorio. This platform has allowed users to participate in various cryptocurrencies, including Aave itself, in lending, borrowing and other Defi applications. The storage process of the AAVE includes the LQD (liquidity pelvis debt debt) locking on the platform AAVE protocol, a decentralized lending protocol built on top of Ethereum.
In an interview with Coindesk, Anthony di Iorio explained that conditioning has become essential to build confidence in defi -protocols: “The fact is to encourage users to validate transactions and to contribute to the network. This gives the defi’s legitimacy and credibility.
Aave rise
The AAVE storage model also paid considerable attention to investors, developers and users. In 2020, Aave raised $ 25 million in the B series of funding and appreciated the platform to more than $ 1 billion. This investment made it possible for the company to expand its ecosystem, including partnerships with larger Defi platforms such as Compound (COMP) and Uniswap (UNI).
Bitcoin: Your traditional companion
In contrast, Bitcoin (BTC), the first decentralized cryptocurrency, is a pioneer of the pile. The Bitcoin-Tétét-Pout (POS) consensus algorithm ensures that validators are selected based on the amount of BTC they hold instead of their mining performance. This approach has led to a significant improvement in scalability and energy efficiency.
Advantages and Disadvantages of Storage
While the headquarters offers many benefits, including increased decentralization and safety, there are some disadvantages:
* Energy Consumption : The bet-insurance algorithm requires validators to store large amounts of cryptocurrencies as a fuse. This is a concern about the environmental effects of the bunch.
* Slower Transaction Times : The cabinet can result in longer transaction times compared to mining cryptocurrencies such as Ethereum (ETH).
* Centralization concerns : Some critics claim that the headquarters can lead to centralization, as validators are chosen by their cryptocurrencies, not based on their expertise.
Insight from Aave and Bitcoin
When asked for the future of the college, both AAVE and Bitcoin provided valuable insights:
* Aave: “We are committed to becoming more accessible to users from all over the world,” said Anthony di Iorio. “Our goal is to create a defi ecosystem where anyone can participate in the validation of transactions without requireing extensive technical knowledge.