What is Decentralized Finance?
Defi, the popular acronym for "decentralized finance is an evolving form of open finance cryptocurrency utilizing public blockchains, such as Ethereum, to enable users a broader range of more flexible services.
How Defi is Radically Transforming the Crypto World?
Like Bitcoin, Deli removes the middleman from all financial transactions. Based on an open-source, global platform, Defi enables anyone with an internet connection to trade, borrow or buy from other Defi users.
Here are the top 6 Advantages Of Defi:
1. Capacity to profit through executing advanced financial contracts, like buying and trading derivatives and assets
2. Trading of crypto assets, including stocks, is conducted on a peer-to-peer basis, with no need for any kind of brokerage.
3. Getting a loan is also quicker, easier, and more effective because there's no need for paperwork.
4. With Defi crypto savings accounts, users can save more effectively for the future by yielding larger returns.
5. Yield farming enables users to analyze and assess Defi tokens to invest in those that might provide larger returns
6. Defi apps have high composability since they are open source codes, and can therefore be used as building blocks, like Legos.
As the next phase in the evolution of cryptocurrency, Decentralized finance is positioned to expand digital currency to a wide range of traditional financing activities.
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