DeFi does have its advantages. However, the ecosystem that is being loved also has weaknesses. What are the drawbacks?
There are a number of deficiencies of DeFi that exist today. DeFi is a very young ecosystem that is still experimental. Basically, DeFi is programmed using smart contract technology on top of the Ethereum network. Currently, the Ethereum network is experiencing overcapacity. Thus, the costs required for a transaction are very expensive. Smart contracts themselves are written by the developers, of course there are still opportunities for bugs that can cause a DeFi platform to fail. In fact, this can pose a big risk.
However, these shortcomings will surely find a solution. Crypto or blockchain asset developers or developers are already looking for a solution to the problems that occur at DeFi. One solution is Ethereum which will innovate into Ethereum 2.0. This will be launched in 2021. This change will add a much larger network capacity, so that in the future, the Ethereum network is no longer overloaded.
In addition, the bug issue has received a lot of attention from various organizations. It tries to standardize the libraries commonly used by Ethereum projects. With these audited libraries, it is possible to minimize the occurrence of bugs in DeFi projects.
Well, that’s an explanation of the shortcomings of DeFi, which is currently much loved. However, DeFi is certainly also useful for improving the ecosystem on blockchain and cryptocurrency. This raises hopes that DeFi will be able to lift crypto asset prices in the future.