You may have found this name on platforms, on social media, or in wallets
De fi Today I will simplify this field for you
In one article, follow and read the article carefully
➫ What is Decentralized Finance (DE FI).
• De Fi, short for “decentralized finance,” is an umbrella term for a group of financial instruments built on blockchain.
• The idea is to allow anyone with access to the Internet to lend, borrow and conduct banking transactions without going through intermediaries.
• De Fi is one of the fastest growing areas in the blockchain and decentralized web space.
➫ It was Bitcoin
– A payment system through which anyone on Earth can send money to anyone else
– Just the beginning of the currency revolution. People who build De Fi apps seek to take accessibility one step further. Decentralized finance has been touted as a potential solution to lower the barrier to entry for those who...
You need to access bank accounts.
Recently, they are being used by cryptocurrency owners for another purpose: making more money.
• What is decentralized finance?
➫ Taken together, De Fi applications are financial products that run on a public blockchain, such as .Ethereum
These products are not authorized, meaning they are not used by third parties.
➫ Instead of financial intermediaries, such as brokers and banks, everything in the protocol is automated via smart contracts.
• Do you want to get a loan?
You don't need a bank to hand you the money.
You can get a loan directly from your colleagues.
• Are you ready to bet on Bitcoin futures and other derivatives?
Forget finding a bitter bookmaker.
You can let the protocol handle it.
• Are you looking to exchange one asset for another?
Decentralized exchanges can facilitate the transaction without taking a huge discount.
➫ Who invented decentralized finance?
➫There is no single inventor of De Fi, but De Fi applications first appeared on#Ethwhich was invented by V italik B uterin.
It has since expanded to include other networks that use smart contracts to automate transactions.
➫ De Fi stands for “Decentralized Finance” and refers to the ecosystem consisting of financial applications that are developed on top of blockchain systems.
➫ De Fi can be defined as the movement that encourages the use of decentralized networks and open source software to create multiple types of financial services and products.
➫ The idea is to develop and run decentralized financial applications on top of a transparent and trustless framework, such as permissionless blockchains and #P2P protocols.
➫ What is special about#Defi projects?
De Fi has several key features.
➫First, it is “open”, which means you can use apps via wallets
- Often without displaying any identifying information, such as name and address. This is theoretically (if not technologically) simpler than having an Egypt account.
➫ Second, you can transfer money almost instantly via blockchain technology, so there is no need to wait for a bank transfer to complete.
➫ Third, rates are at least currently much better than in traditional banks, although transaction costs vary depending on the blockchain network.
🤝🏻 Finally, De Fi apps work together like “Money Legos.” This “composability” allows anyone to create, modify, mix, match, link or build on top of any existing De Fi product without permission.
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