Decentralized finance (De-Fi) is a new technology that allows access to all financial products using firstly the Ethereum blockchain since 2017, and later on the other blockchains. It eliminates the middlemen, and therefore, makes it possible for anyone with an internet connection to have access to all financial products. The most common uses of De-Fi involve users borrowing money and lending money to earn interest. In other words, De-Fi gets you rid of the barriers involved in traditional financial services, for example, banks.
Since the emergence of Decentralized Finance (Defi) everyone was enabled to get out of their local currency and hold USD via stable coins like DAI,USDC or USDT. It allows a real-world P2P exchange. This would be beneficial especialy in times of inflation. You could easily be exchanging your local currency, which has gone down in value. Moreover, you can use Dai,USDC or USDT and lend it out at 3+% interest on De-Fi platforms like Compound Finance.
Decentralized finance has exploded in popularity since mid 2020, it has shown us that decentralizing financial services at scale is doable, even if it is still in its early stages. In the FinTech sector, “Decentralized Finance” or “Defi” is a relatively new concept, but it’s gaining steam quickly. De-Fi has made life easy for users looking to lend and borrow money. The interest rates have been great like PancakeSwap staking their own token with 67% APR.
While institutions like the SEC and other regulators have denounced bitcoin and blockchain as being worthless and fraudulent, they’ve jumped fully into developing the underlying technology, in some cases even creating their own token. I believe that the next wave of attention will be focused on decentralization. Defi-related projects have been very profitable in the past. Over time, investors will be impressed with the expansion and maturity of decentralized defi protocols. The blockchain’s openness, its peer-to-peer nature, and the fact it is a “disruptive innovation” has opened up previously unimagined financial opportunities. The Decentralized Finance Movement is making good on that promise. Consider an all-inclusive open substitute to each financial service you use nowadays like: savings, lending, trading, borrowing, insurance, staking and it is accessible to anyone with a smartphone and an internet connection anywhere in the world.
Companies like Transak and Ramp are stepping in to fill the gap when someone wants to transmit money in cryptocurrency. The recipient still prefers conventional currency, such as sterling or dollars. The crypto community’s aspirations indicate a desire for a more prosperous financial future for all. Bitcoin is the most valuable cryptocurrency of our generation. It’s a digital asset that sprang to prominence after the 2008 financial crisis. Some say it has its origins in a rebellion against a dysfunctional economic system that is closed to many but has a detrimental impact on everyone when it fails. Its community’s aspirations indicate a desire for a more prosperous financial future for all.
Crypto Community is small, but it’s growing fast and has the potential to disrupt every part of the existing financial system. This means there are many people who have a stake in making sure it succeeds. In fact, it can be as broad as the internet itself, there’s no middleman to take a cut. When you pay in crypto, you’re paying directly to the person who is providing the service.
If you have an interest in cryptocurrencies, then you’ve come to the right place. I’ve been working on this area for more than 3years. This short overview will help you navigate the crypto landscape and get started on your journey to the future of finance. It will also give you a good idea of what to expect from the various projects that are emerging. What do we mean when we say the future of finance is definitly DeFi.