Crypto Academy week7// Home-work post for @Gbenga // Decentralized finance Ecosystem// As well as project protocol in the Ecosystem. Written by me @Kingcent (powered up 100%)
Hello steemians welcome once again to my Post I'm very much excited to participate in the ongoing home-work post for professor @Gbenga Post for week7. Today I will be writing about Decentralized finance Ecosystem/ as well as project protocol in the Ecosystem.
professors @Gbenga
Introduction
- What is Defi??
Decentralized finance is refered to as as a collective collection of data that isn't controlled by a central authority, it also strickly exist on the exchange of monitory values and associated valuables round the ecosystem. It's basically revolves round the,
Investing
Trading on stock exchanges etc.
By so doing you don't need the trust centralized finance back-up of companies therefore the financial services Will further be provided without restrictions to everyone within 24hours, this is due to the active development of block-chain technology in general.
Comparing this 21st century to the old time you will most-likely understand that the Internet have changed a lot of things including the global information infrastructure.
Today to my greatest surprise because of massive technological input we are now witnessing how block-chain technology is creating a new global financial structure that is combining both existing market and further new one's to come.
One of the main merit of a Decentralized financial system (DEFI) is that condition wise, the access to it's service's regarding the Internet connectivity is high, regarding the great process of participation, reduction cost, and it further reduces the possibility for censorship, and manipulation by a central authority or organization that owns or controls infrastructure round the financial markets.
Key marits of a Decentralized financial system
- Eazy to access
Any person who uses a Decentralized system regardless of he's/her geographical region religion or location Will posess a credit history that exist in a centralized financial system.
- Eazy transparency
All the transactions you make on the #blockchain perhaps all smart contracts are very open, which means it can be easily audited and identified very simple.
- Very flexible
The user can interface with each other thereby using a convenient protocols offered by third party developers independently.
- Open Permission
It allows different user's to interact with each other freely through brouser extension or software wallets just like what we see on #steemit here.
Main directions of Defi development
- Defi Borrowing
This is a service that permits the user to lend and borrow any type of crypto currency assets, exchanges is also allowed as well.
- Defi exchanges
This particular one helps user's with the mindset to exchange their cryptocurrencies without without the participantion of any centralized exchanges.
- Defi insurance
Reducing the so many risk when holding some crypto currency assets in the minor events that will prevent errors in a smart contract or other unfortunate circumstances.
Let me talk about #Uni-swap
Uni-swap
This is designed just just as the name implies to exchange crypto currencies directly by passing trading platforms and other transactions in order to Carry out trading operations.
User's of uni-swap doesn't need to creat any account on or before exchange what they need to do is to go through the KYC procedure and exchange their fund to the third party by doing this you are advised not to provide any credible information on your account so that your account won't be hacked.
By doing so you will have to connect your browser wallet,(e.g mata mask) select the one you want to exchange and make the transaction direct , the next thing you will see is that the smart contract Will automatically send the corresponding amount of any crypto currency you sent to the third parties account be it #Bitcoin or Etherium token.
moving further for all the simple methods discussed earlier you ask yourself how you can provide sufficient liquidity for conducting prolific operations in #uni-swap.
The fact that uni-swap is been centralized on a very simple and effective idea, the liquidity not the liquidation for a Key exchange transaction is further provided by different assets (e.g a pair of Bitcoin token) thereby creating a very solid liquid pool.
- Curve
One of the vital Decentralization service is the curve, this particular one helps to providing an exchange pool of liquidity for exchanging your different coins for another third party with minimal purchasion Price tag.
In this particular one some methods are used and it is called #stable-coin this Will ensure the effective Introduction with liquidity pool of the third party.
As we all know crypto currency environment is called #stable-coins, different cryptocurrencies with a fixed value centralized to Fiat=physical currency (e.g the US dollars or other valuable assets like gold).
Further illustration stable-coin are designed to protect the market operations from excessive volatility
The collaboration of the first and most popular fixed cryptocurrency Tether (U S D T) there are many alternative, stable-coin have further emerged, rendering different models and designing of the universal company.
project protocol
Project protocol in an Ecosystem is basically the ability of building a better a better currency for different use, cases and representation either a store of value, medium of exchange or a solitary unit of account as the case may be.
As we all know #Bitcoin was the first crypto currency to be at the apex level and it is the most prominent project in this category, many of other vital project in the Ecosystem are set outside to improve upon a certain aspect of Bitcoin protocol toward a designated use.
The primary category this could fall into different payment either a base layer protocol category or a payment based category. Breaking it down further giving how popular cryptocurrencies are (especially monero, and Z cash ) can be.
User's who Will like to transact to broadcast a certain purchase for one reason or another.
The project in this category is prodominantly used by wed developers as the case May be, also building blocks for a Decentralized application. Such as the developers tools.
Any country economy with different multiple currencies there Will be also needs to tool for a prolific massive exchanging a one unit of currency perhaps thus a number of new economies will surely emerge.
Thank you very much for reading through I really appreciate. @Kingcent cares, kind regards to you professor @Gbenga waiting for your review
Cc:@steemcurator01
Cc:@steemcurator02
Cc:@Gbenga
Cc:@trafalgar
Thanks for being a part of my class and for participating in this week's assignment. I hope you learned from the class as the aim of the school is to teach and allow people to learn alongside.
Review
Spinning is wrong and a crime related to copyright theft. It is no accepted on Steemit, please refrain from it.
Your post
Original content
It was a mistake just corrected then, take a review again professor @Gbenga