What is Decentralised Finance (DeFi)

Posted by

DeFi can simply be regarded to as a platform that enables financial applications use blockchains instead of banks.

Decentralized finance has been regarded by many investors as a possible solution to lowering the barrier of entry for those who struggled to access bank accounts.

And more recently, it’s being utilized by cryptocurrency owners for another purpose: to make more money.

DeFi apps are financial products that run on a public blockchain, such as Ethereum.

They do not require any third party for its operations as everythinf is automated into the protocol via smart contracts.

DeFi has several key features.First, it’s “open,” meaning you can use the applications by creating a wallet—often without displaying any identifying information, such as name and address.

That’s theoretically (if not technologically) simpler than having a bank account. Second, you can move funds around near-instantaneously via a blockchain, so no waiting for the bank transfer to clear.

Leave a Reply

Your email address will not be published. Required fields are marked *