Understanding CeFi, DeFi & Yield Farming
Hello everyone, hope you all are doing good? This is the beginning of an exciting new series, which promises to be informative and also educative, do well to follow all the parts, as you will definitely gain 1 or 2 useful information from the series. In today's article we would be knowing the importance Of the DeFi System?
The importance of the DeFi System are quite numerous and are very much needed in our today's financial system. But first thing first, what does DeFi system means. From my understanding, DeFi system is a kind of financial system that is built on blockchain technology, that helps to enable it's users with the ability to make transactions without any third party or intermediary getting involved.
Here are some of the notable importance of the DeFi system;
- Privacy
- Cost Effective
- Security
Privacy
Privacy is a thing of choice, and we all should be able to perform transactions with or without doing our KYC verification. DeFi helps users feel as though they are free and not under any radar, whenever they are performing any transaction. Only you and alone you, should know your worth(account balance).
Cost Effective
DeFi system is cost effective, as it eliminates any third party or intermediary involvement in our transaction. It is not only cost effective but also, very fast as compared to CeFi. Do you know how much it costs and how much time it takes, when you want to send money to someone oversea using CeFi. It could cost you $50 and maybe take a day or two days, sometimes even more days for the money to get to your desired person. But if you use the DeFi system, such transactions may cost less than $5 and takes less than 5 minutes to get to your desired person.
Security
DeFi system ensures high level of security of your funds. Your funds are in a wallet that is completely controlled and managed by you and you alone. No more issues of your account been hacked, as long as your wallet keys hasn't been exposed, you are 100% certain that your funds will safe and secured, when using Defi system.
Those are the three main and notable importance of the Defi system in today's world.
I hope you all found the article interesting and exciting. Do well to share your thoughts about the article in the comment section below. Thanks.
Very interesting publication friend @menoski, we could say that DE FI are characterized by their economy when carrying out operations, their ease in eliminating intermediaries and streamlining processes and their security and transparency.
Excellent summary, very clearly explained. I will wait for your next deliveries.
Kind regards !!
Thanks for coming around and making such a wonderful contribution @karupancitizen
That's the motto of Defi and overall crypto. The third party involvement is major problem whther it is goverment or bank. I think people should get independece in finance and that is why DeFi is here. A lot more to come.
Thanks for coming around and making such a wonderful contribution @luckyali
Wow very nice explaination I am also learn this new concept I am new in this concept but I know very much as learning never ends and we need to learn from every single article. Cefi is a new concept for me but will definitely check out.
Thanks for coming around and making such a wonderful contribution @adityajainxds