Author image by: finivi
🦄DeFi - What in the world is Decentralized Finance?
DeFi is one of the hottest topics in the crypto space. In this guide, let’s take a closer look at what DeFi is and how it works. This will also be the first in a series of guides on the DeFi landscape.
The traditional finance market is centralized. Central authorities issue the regular currency that drives our economy and used for every trade like the government and banks. Therefore, the power to manage and regulate the flow and supply of such currencies in the market resides to them. We also pass the control of our assets to various financial organizations like banks in expectations of getting higher returns. The problem with this is since all the control and fund is centralized, the risk is also at the center.
🔥What is DeFi?
DeFi is short for Decentralized Finance. Decentralized Finance includes digital assets, protocols, smart contracts, and dApps built on a blockchain.
Given the flexibility and amount of development, the Ethereum platform is the primary choice for the DeFi application, but that doesn’t mean it’s the only blockchain platform.
🔥Benefits of Decentralized Finance DeFi✓
Listed here are the advantages or Benefits of DeFi over the traditional financial system
No involvement of Central Entity
Provides full control over funds
Restrict the fraudulent activities
These are the advantages of DeFi- The New Decentralized Financial System over the current traditional financial system.
The Potential of DeFi is found and understood by many Fintech industry experts and they have started utilizing DeFi to tackle the inefficiencies in their current system and services.
The Future of Financial Sector with DeFi
Hope we have covered a major interesting things about DeFi and how DeFi will reshape financial services?. Now here let us have a short look at the Future of Financial Sectors with the complete implementation of DeFi into the real world.
Writer By: @iamprabhupawar