Beginner's Guide Know About Decentralized Finance ?
Decentralized Finance Overview (DeFi):
Since DIFI projects have been in hype for a long time, our experts want to shed some light on how to build DIFI products, how the ecosystem evolves over time, and some crypto projects that Defi is using Huh.
Meaning: -
The promise of cryptocurrency is to make money and payments universally accessible to anyone, wherever they are in the world. Decentralized Finance (DeFi) takes that promise a step further. DFI is the movement that leverages decentralized networks to transform old financial products into reliable and transparent protocols that run without intermediaries. If we put it simply, IMAGINE Global is just an open choice for every financial service you use - savings, loans, business, insurance and more, for anyone in the world with a smartphone and internet connection Is also accessible for...
Smart Contract Blockchain (Dapps): -
Defi is now possible on smart contract blockchains like Ethereum. Smart contracts are programs running on the blockchain that can execute automatically if certain conditions are met. These smart contracts enable developers to create far more sophisticated functionality than sending and receiving cryptocurrencies. These programs are what we now call decentralized apps or daps. Dapp is an app that is built on decentralized technology, but also built and controlled by a single, centralized entity or company. You people are used to this word, dapp, you will be seeing a lot of it from here.
Real Life Usage Of Dapp : -
Although some of these concepts can foretell the future, but in some areas where it is already operative
i) There was direct negotiation on automatic loans between two strangers in different parts of the world, with no bank in between.
ii) DeFi Daps allow you to create stablocks (USDT, BUSD, PAX, TUSD, USDS)
iii) Lend money and earn interest on your crypto
iv) Take out a loan, exchange one property for another
v) long or short property
vi) Implement automated advanced investment strategies.
How Defi Apps Are Different From Similar Traditional Banks / Wallstreet Apps:
A. The operation of projects running on Defy is not managed by an institution and its employees - instead rules are written in code (or smart contracts, as noted above). Once deployed in the smart contract blockchain, DeFi daps can run themselves with little to no human intervention
B. The code on the blockchain is transparent to anyone's audit. This builds a different kind of trust with users, as anyone gets an opportunity to understand the functionality of the contract or find a bug. All transaction activity is public to anyone. While this may raise privacy questions, transactions are pseudonyms by default, namely not directly tied to your real-life identity.
C. Dapps are designed to be global from day one - whether you are in the USA, France Z Germany, Sweden, Canada, you have access to the same DEFI services and networks. Ofcourse, local rules may apply, but technically, most Defi apps are available to anyone with an Internet connection.
Some examples of DeFi projects: -
Several DIFI projects are listed and most of them are built on Ethereum.
Some cryptocurrency projects which are developing and have started using DeFi: -
ETH, REN, AST, BNT, EDO, LEND, ENJ, Hubei Token, MKR, IDEX, REP, KNC, REQ, FET, ZRX, LOOM, LRC, NXS
Conclusions: -
DeFi is now one of the fastest growing sectors in crypto. Industry observers measure traction with a brand new metric - "ETH locked in DIFI". Right now, users have accumulated over $ 600 million of cryptos in these smart contracts.
Intrigued? Look ahead and wait for what's coming for you in this era of innovation.