123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Hardware-Software >> View Article

The Rise And Rise Of Defi

Profile Picture
By Author: Chris Appell
Total Articles: 1
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

You must have heard about DeFi.

However, what is DeFi? And what does the term even mean? Even if you are not sure what it means exactly, you can most likely link it to cryptocurrencies.

DeFi (Decentralized Finance) represents a new approach in the cryptosphere. It has its goals set on what traditional finance has already achieved: access to high-quality financial services for everyone. However, what is best about DeFi is that it is powered by blockchain technology which means transparency and security of data. Most importantly, unlike traditional banking system where users don't even have control over their funds without intermediaries, with DEFI users are the sole owners of their money. Pretty similar to what cryptocurrencies stand for!

Therefore, what makes defi what it is?

There are three basic principles for what makes defi what it is: disintermediation, transparency and user-ownership.

"Disintermediation" means cutting out the middleman institution such as governments or banks. DeFi platforms allow users to control their own funds while offering them a variety of services previously ...
... limited to traditional finance (such as lending and borrowing).
"Transparency" ensures that all transactions on these platforms can be viewed by anyone in real time. These public ledgers provide unrivaled accountability and security.
"User-ownership" simply means no third party has ultimate ownership over your funds and thus can prevent you from sending money at any time, or use your funds in ways you don't agree with.
Another factor what makes defi what it is is a development of a completely new infrastructure from scratch. Existing financial infrastructure is not designed to handle global transactions between strangers because all parties rely on the intermediary's credibility and transparency. In other words, before defi platforms came around no one had ever attempted to determine whether sending money directly from one person to another was possible without a trusted third party involved. And that's what made the creation of these platforms so important!

read more at https://www.altcointrading.net/glossary/yield-farming/

More About the Author

Admin at https://www.altcointrading.net

Total Views: 393Word Count: 355See All articles From Author

Add Comment

Hardware/Software Articles

1. 5 Reasons You Need An Archival System For Your Legacy Ehrs
Author: Triyam Inc

2. Mobile Apps Are Transferring The Society Of Healthcare Sector
Author: sataware

3. 4 Reasons To Invest In A Warehouse Barcode System
Author: Vishal Jain

4. Understanding Ehr Data Retention Requirements For Your State
Author: Triyam Inc

5. Importance Of Firewall In Pbx Server
Author: Sandip Patel

6. What Subject Matter Experts Have To Say About Rolling Out A New Emr
Author: Triyam Inc

7. Important Factors Of Cooling Load Calculation And How It Is Calculated
Author: Mitesh Patel

8. Protect Your Computer From Malicious Software With Glasswire Firewall
Author: GlassWire company

9. Vivaldi On Android Adds A Reading List And A New Translate Panel
Author: Vivaldi Team

10. Why Should Healthcare Companies Move Their Data To The Cloud?
Author: Triyam Inc

11. 5 Pros Of Using A Wireless Barcode Scanner
Author: Vishal Jain

12. Edusmart It Solutions
Author: Second hand laptop dealer in bhopal

13. Top 5 Metaverse Development Companies 2022–23
Author: Ariel bick

14. Data Center Liquid Cooling Market To Witness Huge Growth With Cagr Of 27.31% Till 2026
Author: bis

15. How Different Is Odoo 15 From Odoo 14?
Author: Bista Solutions

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: