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Decentralized Finance (DeFi) : The Game Changer✌

 


Decentralized Finance:

There have been many advances in the cryptocurrency industry over the years. These include the introduction of cryptocurrency trading by PayPal, the announcement of Stable Coin by JPMorgan and the birth of Defy. Although Defy came into existence some time ago, the past few years have seen an increase in its acceptance - billions of dollars have been locked into various Defy platforms. 

Since then, defi has been an important component in the adoption of blockchain and crypto. In this article, we will discuss - what can DeFi bring to the cryptocurrency industry and the world? 

What is DeFi? 

To fully understand the use of Defi, it is important to have a good understanding of what it is. Defi stands for 'decentralized finance' and refers to blockchain-based platforms that support various financial functions without the need for traditional intermediaries.



Loans, betting, lotteries and stable coin purchases are examples of these activities. Defy is popular with crypto enthusiasts and players in traditional financial markets, as it offers a level of security and anonymity not found on more mainstream platforms. 


What does DeFi do? 

As its name suggests, Defi provides a decentralized ecosystem. For example, the process of lending through DFI. In the traditional method, the borrower and the lender exchange the identifying information before the loan is approved. The borrower must contact a traditional financial institution such as a bank, pay an additional fee, or obtain financing through other channels such as a peer-to-peer lender. In addition, there is no guarantee that any party will abide by all the terms of the loan agreement.

All these difficulties can be overcome with defi. All parties take advantage of complete privacy when using DeFi. Here the contract is executed using smart contracts. This means that no payment will be issued until all the contracting parties have fulfilled their obligations. In addition, there is no additional cost to either party.

Defi also supports the betting and lottery industries. In traditional lotteries, participants bet a specified amount; The winner gets cash compensation, but the 'losers' get nothing. However, betting on the Defi platform is absolutely risk free. The way it works is that the interested parties provide a fixed amount, which is credited to receive the interest. 

The lottery winner receives the full amount of the lottery, and the 'losers' receive the starting amount paid. In addition, customers can bet on different results on the Defi platform, and winners will be compensated for giving accurate predictions. Depending on the size of the global betting industry, Defi allows for greater efficiency and transparency. 

Decentralized Finance is said to have promoted access to financial products to the decentralized finance market. Defi platforms have very few barriers to entry, making them accessible to almost anyone with a smartphone. In terms of interest rates, Defi platforms offer advantageous rates in terms of interest rates compared to many traditional financial institutions, making it a major selling point for consumers.


DeFi platforms do not rely on human effort and its main advantage is that they are primarily immune to human error. As smart contracts handle a lot of transactions, the chances of consumer fraud or payment delays are significantly reduced.

Future of DeFi

Looking at the future of DeFi-driven futures, it usually happens that the landscape of finance will change due to DeFi. Cryptocurrencies have shown the world that money can exist without central authority intervention. Defi proposes that even though everyone is safe, there may be no need for intermediaries/intermediaries and financial institutions to create an economically independent world that includes

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