πŸ€“Challenges

Along with attractive opportunities and prospects, the DeFi market also faces some key challenges and barriers:

  1. Immature legal framework

Due to the novelty of blockchain technology and cryptocurrencies, the legal framework governing DeFi market activities in most countries worldwide is still inadequate. This makes both individuals and organizations hesitate to invest in and use DeFi services.

Building a transparent and flexible legal corridor for this field is an urgent issue for the healthy and sustainable development of the DeFi market in the future.

  1. Security concerns and risks

Security and resilience against cyber attacks are always thorny issues for blockchain and DeFi applications. Some major hacking incidents to steal cryptocurrency recently have made users quite worried about participating in DeFi products.

In addition, the high volatility of cryptocurrencies also poses unpredictable risks and difficulties. This is also a major obstacle to market growth.

  1. Talent shortage

Due to the rapid development of the blockchain and DeFi industry, most countries are currently facing a shortage of highly skilled professionals in related fields. This hinders research, development and practical application of DeFi products.

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