We often hear about decentralized finance (DeFi) and the first thought, especially to beginners, would associate this word and sector with the Ethereum (ETH) blockchain, which is not entirely wrong, but which tends to be a vision. limited reality.
We recall that with DeFi a sector and protocols are defined that are totally decentralized, i.e. the user interacts with the various smart contracts, through his wallet, depending on the blockchain with which he interfaces, it is different for each one, and as said these protocols can be on one or more different blockchains.
Let's think for example of the stablecoin Tether (USDT) that we find on different blockchains, and therefore we can define it as a "blockchain agnostic" stablecoin, and for example we find it both on Ethereum and on EOS.
Returning to the comparison between which is the blockchain with a greater weight in this sector, many of you could respond quickly Ethereum, letting yourself be fooled by various graphs that take as a reference point the value of the token and then measure the impact in fiat, the more often in dollars, and therefore the token that is worth the most wins the ranking.
Surely the price of the token affects, but it is not a valid parameter for making a comparison, because if absurdly all Bitcoins (BTC) were on a certain blockchain, as pegged assets, then surely we will talk about Bitcoin is DeFi and he won the match because with its single price, it would outperform all competition.
In this case, and in my opinion, it is necessary to take into consideration the number of tokens and weight, in percentage, in which the related tokens are blocked in the various protocols, because only in that way can we have at least an objective and non-variable data or susceptible to the market.
For the uninitiated, Ethereum and EOS have a different supply, the first of over 100 million, while the second just over 1 billion, and one could argue that for a total of tokens, EOS would certainly win, but this is not said because we must consider that 56% of the total EOS supply is staked, and therefore, data in hand, are over 580 million EOS blocked and out of market:
So the comparison must be made between about 113 million ETH against 422 million EOS, and therefore we already have a first skimming on the actual comparison data, but this is not enough because we have to see of these tokens, how many have been blocked in the different protocols that we find on the related blockchains.
To do this we will use different analysis platforms, in which we find updated data and the first to take into consideration is certainly this, in which it compares the data of the related blockchains, namely Ethereum and EOS:
At first glance we can see that the ETH blocked are over 7.5 million, while the EOS blocked are over 92 million, and respectively the percentages with respect to the total supply are 6.65% for Ethereum and 8.98% for EOS.
Now with a second skimming we have to improve both the total of EOS blocked in these protocols and the percentage of proportion, because the totality of EOS is taken as a reference, which as mentioned does not make sense and to do so we will use this platform in which we can see that there are over 63 million dollars blocked, which converted to EOS amount to about 22.5 million EOS (exchange made at $ 2.80):
Next we will have to add up the 92 million EOS of the first platform, with these new 22.5 million, which the first platform does not track but which exist and are used, and therefore we have in total about 114.5 million EOS blocked in the various DeFi protocols.
The last step that remains for us to refine the comparison is to determine the% of 114.5 million EOS blocked with respect to the supply that can actually be staked, which is 422 million EOS, and the result that is obtained is 27.13%.
Now we can make a comparison and decide the winner objectively and excluding the price variable, and therefore we can see that on Ethereum 6.65% of the supply is blocked, while on EOS 27.13% of the supply is blocked.
In my opinion the numbers speak for themselves, and it is an objective comparison of the data that anyone can retrieve, and as mentioned above the price is only one of the factors, since if both tokens had the same value, even in that case, EOS would win the fight.
The next time you hear about decentralized finance (DeFi), remember that there are other parameters that need to be taken into consideration besides price.
Finally, I remind you that all this information and how the various platforms in the decentralized finance (DeFi) are used can be recovered in the one of the most important books about decentralized finance (DeFi), which takes the name of "Mastering DeFi - A practical guide for beginners and the advanced", important because it not only explains the basics of this sector and the various steps of the various protocols, over 30, but it is also the only one that examines 3 different blockchains such as Ethereum (ETH), EOS and Tron (TRX).
A book that analyzes the macro-categories of decentralized finance which are:
- Lending and Borrowing
- Decentralized Exchange
- Asset management
All organized into 8 chapters and also divided by blockchain so as to have a complete picture of what we find on the various blockchains and also make the relative comparisons to leave maximum freedom for anyone to use the blockchain they prefer without closing the door to others.
Over 30 protocols analyzed in detail and details, with relative fundamental steps, an indication of the various costs incurred to carry out the various transactions, so as to make the reader aware before he can interact with him.
Translated into 8 different languages, Italian, English, German, French, Spanish, Portuguese, Dutch, and Japanese, so as not to exclude anyone from this revolution that is underway and will continue in the years to come.