Competition in the emerging field of decentralized finance is resulting in some very attractive propositions for digital currency traders. The decentralized project known as Venus has shown some strong fundamentals in recent weeks, and they have translated into a major increase of market capitalization for its XVS token, which is now worth $11.1 billion.
XVS is now on track to trade at $100, and this development has made it a rising star in the Binance Smart Chain (BSC) platform for decentralized blockchain projects. Similar to other projects running on BSC, Venus aims to handle Ethereum transactions in a more efficient and affordable manner. During January and February, the price of XVS has gradually risen by more than 3,000%. Naturally, this solid valuation of XVS has many investors wondering how far these projects can go; one thing that can be said in this regard is that what Venus and other decentralized solutions are able to accomplish can very well transform the world of personal banking in the near future.
One of the easiest ways to understand decentralized finance (DeFi) technology is to think of it as a blockchain network with debit cards that you can used to transact. For example, you could have a BitPay digital wallet holding Bitcoin while at the same time connecting with your bank account, which you can withdraw into your wallet, and then create a Bitcoin transaction that you can choose to keep or send back. This means that you own both the Bitcoin tokens and the fiat funds in your bank account. BitPay can hold the Bitcoin tokens, and it can also take care of your digital currency transactions. In effect, you can pay someone in Bitcoin, get someone to wait for you to send Bitcoin, transfer fiat, or do any combination of all three.
With a traditional Bitcoin wallet, the aforementioned scenarios aren't possible because your bank account is not on the network. Now that we have ongoing DeFi blockchain projects with Bitcoin, Ethereum, and other tokens, you can have the digital wallet holding your Bitcoin linked to your bank account, and that would be your expanded wallet that you can manage from your smartphone.