Let's Talk About A Very Popular Finance 1.2 | @growwithme
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Starter
As we have covered about DEFI, in the previous part. But due to some other work, I did not added the length to post. I will try to make this post as full cover of Important Things related to DEFI. In this post I will try to cover the following things:
In Defi user can face multiple types of risks. Most of these are very common and similar. Let's have a read about these risks by topic by topic.
Financial Risk. If a user purchase cryptocurrency, such as he purchased Bitcoin, at $23000 and then suddenly the currency drops to $19000, that person could have lost $4000. If he sales on the price the loss is done, definitely. I f he hold and the price goes more down, his lost increases. The financial risk is in another form also, it is converting the crypto assets to other. The loss happens sometimes to users, but to users who does not understand the way how to convert and make profit easily.
Technical Risk as we know most of these Blockchains are based on code, such as Ethereum Blockchain. And code is fallible and can be hacked by anyone. Another technical risk called Oracle. It is also contract based risk.
Human Risks if a person having his private keys of his important wallets, on SIM or Hard disk or memory card. If the important device with keys of soft wallets will lost from person, ideally he lost his all assets in DEFI.
These are some risks from risks of DEFI. If we dive more deeply we can find more.
Decentralized finance is a deep sea. I am not sure I know the whole things and works related to Decentralized Finance. This is the deep ocean, not just crypto Assets related to DEFI, not just trading, creating crypto is in Defi.
There are more and more things to explore in DEFI. I wish if this post win in the Top 7 posts of #fintech curation this week, I will try to deep dive in Defi again. Otherwise the topic will be closed for now.
How DEFI can Transform The Future, it's easy to understand and it's in front of us. It's happening. Many games are now related with crypto, many websites are accepting crypto as payment, as well as giving users withdrawal in crypto. PayPal added Bitcoin, so the world is slowly understanding the importance of DEFI and trying to add this Finance in their lives.
There are lot of benefits of Decentralized Finance. Some are as follow; we can purchase and sell Things through this finance system. We can send or receive money with low fee and quick, to or from another user. There are many utilities related to this finance system. And much more.
It will not easy, but slowly decentralized finance will be introduced in most of countries and jobs opportunities will come to related users. Binance is enhancing the business through opening offices, branches in different countries.
As we have seen Facebook owner did launched a cryptocurrency, introduced new metaverse system too. (I don't understand this till now, I need a dive into it).
This article is purely written by me, base on my own research on DEFI. Decentralized Finance is a deep ocean for dive. Much things remaining to get explored in this ocean. I have shared some points, covered some topics in these posts. I tried to Explain about decentralized markets, risks, mechanism etc. I hope you like my struggle and I wish to get a chance to win this time in top 7 posts on the tag. I know it's hard, but I will try, try again.
- Risks Understanding
- DEFI Mechanism
- How DEFI Can Transform The Future
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Risks Understanding
In Defi user can face multiple types of risks. Most of these are very common and similar. Let's have a read about these risks by topic by topic.
Financial Risk. If a user purchase cryptocurrency, such as he purchased Bitcoin, at $23000 and then suddenly the currency drops to $19000, that person could have lost $4000. If he sales on the price the loss is done, definitely. I f he hold and the price goes more down, his lost increases. The financial risk is in another form also, it is converting the crypto assets to other. The loss happens sometimes to users, but to users who does not understand the way how to convert and make profit easily.
Technical Risk as we know most of these Blockchains are based on code, such as Ethereum Blockchain. And code is fallible and can be hacked by anyone. Another technical risk called Oracle. It is also contract based risk.
Human Risks if a person having his private keys of his important wallets, on SIM or Hard disk or memory card. If the important device with keys of soft wallets will lost from person, ideally he lost his all assets in DEFI.
These are some risks from risks of DEFI. If we dive more deeply we can find more.
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DEFI Mechanism
It is easy to understand then, when we know about process of recreation of financial system. It can be through stable currency, it can be through Saving Accounts then, it can be through Stock Exchanges, also it can be with MAKERDAO. MAKERDAO is a protocol which helps to create a stable coin like DAI.
Saving Accounts can be used through Compound (defined in previous post). Where interest based protocol helps businessmen to earn extra money by interest. (this is not for Muslims)
The uniswap is equal as stock exchanges. As well as money Legos helps in the Mechanism of DEFI.
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How DEFI Can Transform Future
Decentralized finance is a deep sea. I am not sure I know the whole things and works related to Decentralized Finance. This is the deep ocean, not just crypto Assets related to DEFI, not just trading, creating crypto is in Defi.
There are more and more things to explore in DEFI. I wish if this post win in the Top 7 posts of #fintech curation this week, I will try to deep dive in Defi again. Otherwise the topic will be closed for now.
How DEFI can Transform The Future, it's easy to understand and it's in front of us. It's happening. Many games are now related with crypto, many websites are accepting crypto as payment, as well as giving users withdrawal in crypto. PayPal added Bitcoin, so the world is slowly understanding the importance of DEFI and trying to add this Finance in their lives.
There are lot of benefits of Decentralized Finance. Some are as follow; we can purchase and sell Things through this finance system. We can send or receive money with low fee and quick, to or from another user. There are many utilities related to this finance system. And much more.
It will not easy, but slowly decentralized finance will be introduced in most of countries and jobs opportunities will come to related users. Binance is enhancing the business through opening offices, branches in different countries.
As we have seen Facebook owner did launched a cryptocurrency, introduced new metaverse system too. (I don't understand this till now, I need a dive into it).
Conclusion
This article is purely written by me, base on my own research on DEFI. Decentralized Finance is a deep ocean for dive. Much things remaining to get explored in this ocean. I have shared some points, covered some topics in these posts. I tried to Explain about decentralized markets, risks, mechanism etc. I hope you like my struggle and I wish to get a chance to win this time in top 7 posts on the tag. I know it's hard, but I will try, try again.
You've got a free upvote from witness fuli.
Peace & Love!
Well according to my information hacking the blockchain is quite a difficult task, but the main risk is associated with keys , which can be easily stolen if it is stored on PC or laptop. So If if these keys are stored in USB and in form of a document, this will be safer.
Thank you for appearance on my post Sajid bhai. As a USB form, how our keys will be safe? I think the best way is to sync with your email, all important keys and remember that email and password only. ;)
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