Federal Reserve Bank of St Louis has issued a paper which details into the role of Ethereum and decentralized finance in the financial ecosystem of the world. The research panel was headed by Dr. Fabian Schar – professor for Distributed Ledger Technologies and FinTech at the University of Basel.
The queen of cryptocurrencies may have revolutionized the financial ecosystem with its DeFi technology. The decentralized finance sphere has been surging with the total value locked at a staggering $134 billion. DeFi is considered as the future especially with new innovations happening in the sphere.
According to Dr. Schar, if the current security and regulatory problems with decentralized finance are resolved then it may result in a paradigm shift in the financial industry. praising the accessibility, operability, and efficiency of the system dr. Schar wrote about how smart contracts fuel the decentralized finance by replicating existing financial services.
Ethereum steps in into the picture as it is looked up at as the pioneer of the DeFi sphere. The backbone of the decentralized finance, smart contracts, majorly run on the Ethereum blockchain. Moreover, most of the popular DeFi projects like Maker (MKR) also run on the blockchain of Ethereum. Hence, Ethereum with its blockchain is powering the DeFi sphere which gives it a very important role.
Ethereum has shown phenomenal performance in the bull run – leaving the king of the market behind. ETH coin surged upwards establishing a new all-time high at $3,523. At the time of writing, the cryptocurrency stands at a price level of $3,380. The on-site metrics show that Ethereum is still surging upwards and higher highs may be established soon. The market sentiment for the coin is strongly bullish.