RE: Steem Crypto Challenge Month #2 : Diving into DeFi
Dear @josevas217
Just like you've said: deFi surely is "revolutionizing finance".
I must admit, that I initially couldn't understand much about DeFi and I still struggle to find (or imagine) any real-use cases. Friend of mine recommended to learn about Compound - have you ever heard about this one?
Definetly you introduced readers to world of DeFi in very smooth and easy-to-read way. Great job on that :)
You do not give the responsibility to anyone to operate and benefit from your money, but all the movement of your funds is at your charge, but through a smart contract, well, I have added another term that may be new to some.
So basically, we're removing 3rd party (banks, which were parties bringing trust) and replacing it with smart contracts. Right?
Good luck with the challenge.
Yours, Piotr
Certainly my friend @crypto.piotr, the banks are left aside and a clear intelligent contract is in charge of that, there are some nuances to consider. In particular, I make sure that these intelligent contracts are verified, so that it is not possible to change them later, because by verifying them, it becomes practically impossible to change them after they are registered in the blockchain. And this is something important, because if they can change them, they could simply leave with the money and that's it, as in fact has happened on other occasions with fraudulent projects.
If you're referring to the interestcompound, yes, of course I've heard and read it. It's a subject, actually. And it's a good way to make the money grow, to increase the capital itself, taking advantage of what the interest on interest generates.