DeFi Product / S4W8 - Homework Post for @reminiscence01
Back again with me @chairulrizalx and Week 8 of Steemit Crypto Academy Season 4 has started and this time Professor @reminiscence01 and @lenonmc21 are mentors on this homework assignment. In this post, I will follow the homework given by Professor @reminiscence01 which discusses DeFi Product - Steemit Crypto Academy Season 4 Week 8 - Beginner's Course | DeFi Product
Technology has become something that cannot be separated from everyday life, updates and evolutions made by technology developers make today's life easier to access only by using technology. The increasingly modern era requires us to continue to adapt to all existing technologies as a provision to live a better life in the future.
1a). Explain DeFi products and how it is shaping the present-day finance.
The emergence of Blockchain technology with a decentralized system in recent years has had a lot of positive impacts on users around the world, cryptocurrencies which are an alternative currency with the transparency and convenience offered make it a form of future technology that will become something that needed by all levels of society.
One of the Decentralized Finance products is known as DApps (Decentralized Applications) which focuses on making traditional financial services as decentralized as cryptocurrency exchange platforms. If previously conventional financial services depended on one institution such as a bank as an intermediary in the transaction process, using DeFi, all transaction processes were carried out by programming codes written on smart contracts and using Peer-to-peer networks.
Decentralized Finance application code is generally open-source or can be accessed by users without being tied to authorities such as the government, users can verify the code from the application themselves. Thus, users can have complete control over their funds without fear of being cheated by certain parties. In addition, DeFi can generally be accessed digitally from anywhere because it is an online platform, we don't have to bother going to places like banks.
In short, DeFi is an open financial system without intermediaries because it is Decentralized which for several years has been successfully used in cryptocurrency transactions. With DeFi, cryptocurrencies can be transacted, transferred, traded, or used for other financial activities by prioritizing efficiency, security, and easy access.
2a). Explain the benefits of DeFi products to crypto users.
The emergence of Decentralized Finance which provides financial alternatives that use technology has now made many users feel the benefits of this technology, the following are the benefits of using DeFi for cryptocurrency users:
- DeFi is easily accessible to cryptocurrency users
Decentralized Finance is a technology that can replace the role of conventional financial systems because it can be accessed easily, every user connected to an internet connection can use DeFi and even design programs for DeFi development such as making DApps.
- DeFi is open to all users
By using DeFi technology, it is possible for people who previously did not have access to conventional financial services due to difficulties in meeting the requirements of financial service providers such as banks, all people can participate in the global economy and increase credit scores by using the platform from Decentralized Finance.
- DeFi promotes trust and transparency
DeFi does not cover all information related to the program, all information is easily available and can be accessed openly by all users. This system believes that a lack of transparency can reduce a person's accountability and motivation to do things responsibly.
- DeFi is a choice for saving digital assets for the future.
The emergence of DeFi is an option for users who want to store digital assets for the future without fear of losing assets and the monthly fees charged as done by conventional banks, Decentralized Finance is a solution to overcome financial problems in the future.
The development of the DeFi application has encouraged the realization of a more fair and transparent financial service system, where conditions allow everyone to have access to utilize financial products or services. Benefits of using DeFi are urgently needed at this time because financial inclusion has been proven to help people move out of poverty, reduce social inequality and promote economic growth for a better future for humanity.
2). Discuss any DEX project built on the following network.
Binance Smart Chain (BSC) - PancakeSwap
One of the most widely used decentralized financial applications in my opinion is PancakeSwap, a cryptocurrency exchange platform that uses the Binance Smart Chain (BSC) network to drive its network.
The following are the features available on the PancakeSwap platform:
- Trade : Exchange & Liquidity
- Earn : Farm & Pool
- Win : Prediction & Lottery
- NFT : Overview & Collections
Benefits of PancakeSwap
- Decentralized, which means that there are no intermediaries
PancakeSwap is an exchange platform that provides services without the need to use intermediary services as centralized platforms do. Users can set their transactions to be carried out on cryptocurrency exchanges.
- Supported by many digital wallets that can facilitate transactions between users in different wallets
PancakeSwap already has support from many popular digital wallets in the cryptocurrency world such as Metamask, Trust Wallet, WalletConnect, and several other digital wallets.
- Relatively low transaction fees
When using PancakeSwap offers significantly lower transaction fees than other platforms that use networks other than Binance Smart Chain (BSC). PancakeSwap uses the BSC blockchain which, when conducting transactions, the fees charged are very small when compared to the transaction fees charged on other blockchains.
- Fast and easy transactions
In addition to saving users from high transaction fees, using the BSC network can also facilitate faster transactions, which is a feature needed by cryptocurrency exchange platform users who don't want to waste time waiting for long transaction processes.
- Audit security guarded by CertiK
PancakeSwap uses the services of the cyber security company CertiK, which is guaranteed security when conducting audits and is trusted. In addition, PancakeSwap uses ShentuShield security insurance to protect user transaction data from cybercrime.
One of the DeFi projects of Tron Blockchain is JustSwap, a cryptocurrency exchange platform based on the Tron network using the decentralized TRC-20 token. The Tron network is known for its transaction speed which is claimed to be faster than other blockchain networks, using JustSwap also allows users to earn transaction fees by becoming a liquidity provider, plus users are free from protocol commissions.
Swap: Cryptocurrency token/coin exchange service with other types of crypto assets.
LP Pools: A service for mining with more energy-efficient resources to support projects from the blockchain.
Scan: This feature provides a service to view a list of transactions made on the Tron network and Trading Pairs made on the Tron blockchain.
Benefits of JustSwap
- Instant Exchange
JustSwap provides an instant Swap feature where users don't have to bother waiting for the transaction to complete because JustSwap does not match orders.
It is clear that JustSwap offers an open cryptocurrency market and promotes transparency between the parties involved, and also that this platform can be used by anyone just by connecting to the internet.
- Unlimited liquidity
JustSwap and blockchain provide unlimited liquidity for all cryptocurrency traders and investors in need.
Because JustSwap is based on Tron network, users are no longer worried about being exposed to high fees like what happened in Ethereum. This JustSwap claims to be one of the Decentralized Exchange (DEX) with lower fees and faster instant payments than other networks.
3). In the DEX projects mentioned in question 3, give a detailed illustration of how to swap cryptocurrencies by swapping any crypto asset of your choice. Show proof of transaction from block explorer. (Screenshots needed)
Swap Using JustSwap
- Go to the website https://justswap.io/
- On the Restore menu we will be directed to the Import account menu, here I choose to enter the Private Key. In addition to the Private Key, importing our account can also enter the Keystore, and also the Mnemonic phrase.
- When the wallet connects process is complete, return to the JustSwap main page. The connected account will appear on the left page of the website as shown in the image below.
Swap TRX to WBTT
- Make sure that the token will be swapped because if you enter the wrong data, it cannot be returned. If it is appropriate to select Confirm Swap.
- Block Explorer of Swap transactions that have been made can be seen on Tronscan.io - Link.
DeFi (Decentralized Finance) uses blockchain technology in running its system, as a program engaged in finance and banking makes DeFi a popular program because of the convenience it provides and the effectiveness of its performance.
The development of the DeFi application has encouraged the realization of a more fair and transparent financial service system, where conditions allow everyone to have access to utilize financial products or services.
Benefits of using DeFi are urgently needed at this time because financial inclusion has been proven to help people move out of poverty, reduce social inequality and promote economic growth for a better future for humanity.
Note: All screenshots that are not sourced are the property of the author.