WHAT IS DECENTRALIZED FINANCE (DeFi)? WHY DO PEOPLE WANT TO BE DECENTRALIZED?
Decentralized Finance (DeFi) is a term used for blockchain-based protocols, products and platforms that serve as an alternative to traditional financial infrastructure.
Here's what you need to know about DeFi:
DECENTRALIZATION AND WHY PEOPLE PREFER IT:
DeFi describes decentralized financial tools, protocols, and platforms that people use to manage their money without relying on traditional financial infrastructures such as banks, remittance platforms, and government-issued currencies.
DeFi applications do not require permissions and are transparent. It is also accessible to anyone with the appropriate blockchain wallet. There are no regional restrictions, no Know Your Customer (KYC) requirements, and no central entities controlling the process.
DeFi provides accessibility for everyone, including unbanked individuals around the world. This makes financial services accessible to a wider audience.
The most common uses of DeFi are:
Lending: Lending cryptocurrencies and earning interest.
Automated Market Maker: Providing liquidity and trading.
Synthetic Asset Publishing: Creating synthetic assets that mimic real assets.
Decentralized Insurance Protocols: Providing insurance services.
DeFi offers an alternative path to traditional financial systems and empowers users.
