The beating heart of any ecosystem of decentralized applications, DApps, is its underlying technology stack. For Ethereum (ETH), this is its “Nakamoto” consensus, Ethereum Virtual Machine (EVM) execution environment, and Solidity programming language. Together, these technologies have allowed smart contract developers to propel decentralized finance (DeFi) from concept to reality.
For DeFi to make the next leap - to mainstream adoption - scalability is the technological requirement that garners the most attention. But an often overlooked but equally important aspect of layer-one platforms is their approach to smart contract development.
While Solidity and the EVM are the core technologies that allowed Ethereum to unquestionably be DeFi’s pioneer, pioneers are also the ones to make all the mistakes. Ever wonder why it feels like there are a never-ending series of DeFi hacks and exploits today? It’s the result of a programming approach that makes it incredibly hard to manage tokens securely. Because when Ethereum was being designed, DeFi didn’t exist.
But a fix isn’t easy. Major changes to Solidity and the EVM aren’t possible as this would break the majority of DApps that have already been built. Therefore, newer platforms have a real opportunity to learn from and improve upon the developer experience –– because the improved DApps that those developers build could enable the next wave of DeFi adoption.
Whether it’s tokens for decentralized borrowing and lending, tokens for an NFT game or art piece, or tokens for a financial derivative, they are at the core of practically every use case in DeFi and crypto.
However, the only token that the Ethereum platform natively understands is ETH. All other tokens, whether under the
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