Crypto Academy Week 7 - Homework Post for @gbenga||Decentralized Finance Ecosystem and Project in Ecosystem|| by @Justice2550

INTRODUCTION

I am so delighted and excited making this post to the @crypto-academy community after carrying out serious research on the home work. However, I have participated and painstakingly gone through the lecture material delivered by @gbenga who lectured on Introduction to Defi and Yield Farming. The lecture was an insightful,educative and explosive one. In the lecture,I was exposed to things I never knew about and I am very grateful to @crypto-academy for this wonderful lecture. Below is my homework from what I have learnt.

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DeFi is a contrated form for decentralized finance. It is widely accepted by a greater number of people. DeFi is seen and accepted as a matter of cryptocurrency in today's world. DeFi is a concept which provides financial services and it is built on blockchain technology. DeFi defined as a concept which provides financial services like lending, borrowing and trading. DeFi carries out its operation on a public network which means only network which is connected to the internet can be accessible to any user. DeFi can be regarded as a smart contract that does not require an intermediaries but can only be access by any user who has internet connection. Today,most DeFi applications are built using the Ethereum network.

The origin of cryptocurrency could be traced back to 1980. since then,so many events have set in order to shape cryptocurrency. For instance, Bitcoin, which is regarded to be the popular and prominent cryptocurrency still had challenges. one of this challenges was lack of stability which makes Bitcoin to be poorly rated and a poor asset for any investment. However, there was a sporadic change in the cryptocurrency space and decentralized finance (DeFi) was introduced. In the old days, before goods and services could be exchanged, there must be a trade-by-barter. During this period, buying and selling was very difficult and Cumbersome because there was no currency.

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But,as time continued, currency was invented to make exchange of goods and services, effortlessly. During this period, central authorities became the other of the day as they were more influencial and economically powerful, people trusted them. However, there has been a violation of this trust on the side central authorities because of the inability to manage people's money. Hence, DeFi was birthed and developed for the purpose of creating a financial system that is open to everyone and reduces the need to put trust on this central authorities. DeFi brought many opportunities to bring about clear, transparent and robust financial system that requires nobody to control. For instance, Bitcoin blockchain became the first in the decentralization of financial systems.

The projects in ecosystems are:

1. Compound:
   
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   This is the fastest growing project on defi. compound is built on Ethereum blockchain which forms Money by way of crypto assets. compound determines its interest based on on supply and how it is demanded for a given assets. In this kind of project,it gives the lender and borrowers the opportunity to interact directly without the need to pay attention to condition such as maturity, interest rate etc. In compound, users can effortlessly make transactions at any time. that is to say that, they users can withdraw their money at any time it is needed.coumpoud is governed in a decentralized way through community voting. Voting is implemented through the ERC-20 COMP token. it purpose is to grant the owners rights to delegate to any individual and transfers control to persons who in their opinion, have the competence to implement changes in the protocol.

2. UNISWAP:
   
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   Application in a decentralized network is created exchange one token directly to another without the intervention of any financial institution or intermediaries. Here, the user does not have to create an account but go through the KYC procedure. Then the user need to download a wallet like MetaMask
   and connect to a browser. Therefore,smart contract will then send the equivalent amount of Ethereum to the account

3. Synthetix:
   
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   This is decentralized network which is built on the Ethereum blockchain for the purpose of creating synthetic crypto assets which equivalent with the value of real assets.
   There are three decentralized platform in synthetix. They are;
   i. Synthetix Exchange
   ii. Mintr
   iii. Dashboard

From the above discourse, I want to outline advantages of Decentralized Finance (DeFi)

a. It is accessible to any user
b. It is transparent. That is,it easy to verify transactions on the blockchain.
c. It is flexible.

CONCLUSION
Thank you so much for reading through my homework task. @steemitblog and @gbenga, here is my homework task submission for week 7.
Cc: @steemcurator01
Cc : @steemcurator02
Cc : @steemitblog
Cc : @gbenga