DEFi
Defi stands for “decentralized finance” and it refers to an ecosystem of financial applications that are developed on Blockchain systems.
Defi is a movement that promotes the use of decentralized networks and open-source software to create multiple financial services and products.
DEFI has some major functions which can be grouped into
- Creating monetary banking services
- Peer to peer borrowing and lending platforms.
- Advanced financial systems like DEXEs and tokenized platforms. In summary, Defi is shifting the global economy, from the banks to a new open and decentralized world. Removing the need for intermediaries and also improves security.
THE REASON FOR THE INCEPTION OF DEFI
This is quite simple,in a good sense Defi is the main reason why cryptocurrency was invented, only that with the spring up of central trading exchanges like – COINBASE/BINANCE there seemed to be a shift from the original plan. This is because these marketplaces are selective, so not all projects are participating in the Frontline markets. Defi protocols now make a level playing field for all projects (upcoming & already developed) so they all can interact in the financial marketplace. That’s why we’re able to trade with new tokens and access applications by ourselves.
BRANCHES OF DEFI
– Altcoins
– Tokens
– NFTs
FUTURE OF DEFI
– Adaptation
– Global decentralization
– Virtual Assets (NFTs)
CONCLUSION
DeFi is a transparent, open, and global financial system designed for the internet era as an alternative to a system that is heavily regulated, opaque, and supported by infrastructure and procedures that are decades old. It allows you to manage and see your finances. It exposes you to international markets and offers you other financial or monetary possibilities. Anyone with an internet connection may access financial services thanks to DeFi devices, which are mostly owned and managed by their customers. Tens of billions of dollars’ worth of cryptocurrency have already passed via DeFi apps, and that amount is increasing daily.