Intro to DeFi

jackramsey (61)in #defi • 2 years ago

DeFi is the very short term for Decentralized Finance.

This is a system recently coined, which do not rely on a centralized financial governance, traditional banks and exchanges, but offers financial services by using smart contracts based on the blockchain technology.

DeFi intention is to provide services that can run 24/7 without intervention from any form of government or governance to control and influence it.
Most users do not wish to be affected by inflation especially with regards to their earnings, where their moneys worth will decreases during uncertainties.

Does it make sense to you? Do not worry, this term and technology is very new to most people living outside of the internet reach.
Especially with blockchain technology.
Even in todays internet, the information obtained are limited, especially for some countries and government not comfortable with bitcoin and cryptocurrencies. With their leaders mostly coming from Baby Boomers, Generation X and earlier. It is hard for them to realize that money can be generated inside such technology without having to hold or smell it.

Most DeFi platforms allow an individual to exchange, borrow or lend funds from other people. They can speculate on price movements, hold or HODL their assets as investment or savings.

The decentralized financial system is fully automated. Its programs can run smart contracts that can manage the required financial services offered.

We are now very lucky since we can choose and decide where we want to put our hard earn money.