Fundamental guide to build Defi with step by step process
I’ll share with you some key points how any Defi application is built for beginners
1. Choosing a blockchain platform: This is the network that provides the infrastructure and security for your DeFi application. The pros are decentralization, transparency, immutability, and programmability. The cons are scalability, interoperability, and usability limitations. For example, Ethereum is popular but also costly, slow, and congested.
2. Developing a smart contract: This is the self-executing computer program that defines and enforces the rules and logic of your DeFi application. The pros are automation and simplification of transactions and agreements without intermediaries or human intervention. The cons are bugs, errors, or vulnerabilities that can compromise the functionality or security of your DeFi application. For example, smart contracts can be hacked, exploited, or drained by malicious actors if they are not properly audited or tested.
3. Deploying and testing the smart contract: This is the process of uploading the smart contract code to the blockchain network and verifying its functionality and security. The pros are ensuring that your DeFi application works as intended and meets the expectations and requirements of the users and stakeholders. The cons are high costs, time, and resources to deploy and test the smart contract on the main network. For example, deploying and testing on Ethereum requires paying gas fees for every transaction or interaction with the smart contract.
4. Integrating with other protocols or services: This is the process of connecting your DeFi application with other components or features that enhance its functionality or usability. The pros are more functionality, diversity, and innovation for your DeFi application. The cons are increased complexity, dependency, and risk for your DeFi application depending on the quality and reliability of the protocols or services. For example, integrating with an oracle service such as Chainlink can provide reliable data feeds for price information or events, but it can also introduce a single point of failure or attack if the oracle service is compromised or corrupted.
5. Creating a user interface: This is the process of designing and developing a front-end application that allows users to interact with your DeFi application. The pros are improved user experience, accessibility, and adoption for your DeFi application. The cons are high skills, creativity, and maintenance to create a user interface that is attractive, intuitive, and responsive for your DeFi application. For example, creating a user interface for your DeFi application may involve using web development tools such as React, Web3.js, or Ethers.js.