Importance of DeFi || Tronfanclub
Assalamu Alikum
How are you all Hope you all are well. Alhamdulillah I am very well. Friends in today's post I will talk about Defi. What is it actually? The full form of Defi is decentralized finance. It means that you can deposit your coins through it if you want. We basically deposit our money in a centralized bank. If he wants to get my bank information, he can use it to hack my account. Actually it has many limitations. And I think there is a problem in the fact that we see the bank as a bank. Suppose you go to a new bank. The bank has just opened. You kept 1 lakh rupees in the bank. Now I have come to take a loan from the bank. I took 1 lakh from the bank. This 1 lakh taka was originally given to me by the bank from your account.
Now you also have 1 lakh taka, I also have 1 lakh taka, the bank basically has 1 lakh taka, but my money and your money together is 2 lakh. This is why it is said that if all the people come to withdraw money from the bank in one day, then they will not be able to pay even 50% of the people. Therefore, there is a limitation of withdrawing money and depositing money in the bank. This is about centralizing. But the concept of decentralized finance is completely reversed as we talk about it. Decentralised means decentralised, there is no ownership. That means here you can deposit money without any complications. They are completely digital. Means you don't have to wait in line like a bank to do all these things. They are limited to mobiles and computers and are completely digital. So there is no problem of transaction here. Now the question is that it is decentralized, there is no bank here, so how can transactions be done properly?
Actually smart contract is used here. It works with the help of smart contract and blockchain which makes transactions easy. In the last post I discussed what is a smart contract. If you have read my post I hope you know this and if you don't then read my post once and you will understand. It is built on a principle. And this is if this then that.. means there will be a contract between me and you if I get this thing you will also get your thing. Which is created through a coding language. It was first used in the Ethereum coin, but now many finances operate with this principle. And various dapps now run with this concept. Besides, if you want to take a loan, you can take the loan by keeping the coins in the wallet. It is built with the combination of blockchain and smart contract which takes us forward without any 3rd party medium.
Friends it is not yet launched worldwide but it will be soon. It is currently operating in the US. If you think it will be good or bad if it is launched, you can tell by commenting. In the future, if bitcoin etf is approved, we can see such a finance system. There are various exchanges where you can view such finance. Which has become quite popular among people so hopefully it will be popular in future. This will increase the number of cryptocurrency users. But one thing must be kept in mind that if you want to run it requires a lot of skill. Moreover you will face loss in it. So do research on it, the more you research the better you will know about the subject. So friends this was today's post. Seen in a new post. Ending here as of today. Thank you for reading the post. stay well
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It was one of the segment in the last Bull cycle that grown a lot and I hope that in the next one also it is going to rock once again.
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This is very important article, thank you brother, go ahead
You have published a very nice comment about the problems and solutions of DeFi. I understood a lot of things from what I saw, brother, thank you.
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Yes I agree with you. DeFi has an important role.