What is DeFi?
Does anyone know what DeFi is and could explain to me briefly, I came across it on the internet? Thank you in advance.
Does anyone know what DeFi is and could explain to me briefly, I came across it on the internet? Thank you in advance.
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5 answers
DeFi is basically just classic financial tools built on the blockchain, in particular the Ethereum platform. They are mostly based on open-source protocols or modular frameworks for creating and broadcasting digital assets and aim to provide significant benefits of operating on a public blockchain, such as censorship resistance and better access to financial services.
Some of the most popular DeFi solutions are open credit protocols, issuance and investment platforms, market forecasts, exchanges and open markets, and stablecoins.
Secured loans using open protocols such as MakerDAO and Dharma are designed to rely on the trust minimization that Ethereum provides to reduce counterparty risk without the need for an intermediary. One of the main goals of DeFi is the transition of classic securities to digital tokens on the blockchain.
DeFi is basically just classic financial tools built on the blockchain, in particular the Ethereum platform. They are mostly based on open-source protocols or modular frameworks for creating and broadcasting digital assets and aim to provide significant benefits of operating on a public blockchain, such as censorship resistance and better access to financial services.
Some of the most popular DeFi solutions are open credit protocols, issuance and investment platforms, market forecasts, exchanges and open markets, and stablecoins.
Secured loans using open protocols such as MakerDAO and Dharma are designed to rely on the trust minimization that Ethereum provides to reduce counterparty risk without the need for an intermediary. One of the main goals of DeFi is the transition of classic securities to digital tokens on the blockchain.
Machine translated
DeFi is basically just classic financial tools built on the blockchain, in particular Ethereum. They are mostly based on open-source protocols or modular frameworks for creating and broadcasting digital assets and aim to provide significant benefits of operating on a public blockchain, such as censorship resistance and better access to financial services.
Some of the most popular DeFi solutions are open credit protocols, issuance and investment platforms, market forecasts, exchanges and open markets, and stablecoins.
Secured loans using open protocols such as MakerDAO and Dharma are designed to rely on the trust minimization that Ethereum provides to reduce counterparty risk without the need for an intermediary. One of the main goals of DeFi is the transition of classic securities to digital tokens on the blockchain.
DeFi is basically just classic financial tools built on the blockchain, in particular Ethereum. They are mostly based on open-source protocols or modular frameworks for creating and broadcasting digital assets and aim to provide significant benefits of operating on a public blockchain, such as censorship resistance and better access to financial services.
Some of the most popular DeFi solutions are open credit protocols, issuance and investment platforms, market forecasts, exchanges and open markets, and stablecoins.
Secured loans using open protocols such as MakerDAO and Dharma are designed to rely on the trust minimization that Ethereum provides to reduce counterparty risk without the need for an intermediary. One of the main goals of DeFi is the transition of classic securities to digital tokens on the blockchain.
Machine translated
DeFi is short for Decentralized Finance. Decentralized finance includes digital assets, protocols, smart contracts and dApps built on the blockchain.
Given flexibility and growth, the Ethereum platform is the top choice for DeFi applications, but that doesn't mean it's the only blockchain platform.
DeFi is an open financial ecosystem where various small financial tools and services can be built in a decentralized way. Since they are applications built on a specific blockchain, they can be combined, modified and integrated according to your needs. Just like Legos!
DeFi is short for Decentralized Finance. Decentralized finance includes digital assets, protocols, smart contracts and dApps built on the blockchain.
Given flexibility and growth, the Ethereum platform is the top choice for DeFi applications, but that doesn't mean it's the only blockchain platform.
DeFi is an open financial ecosystem where various small financial tools and services can be built in a decentralized way. Since they are applications built on a specific blockchain, they can be combined, modified and integrated according to your needs. Just like Legos!
Machine translated
The promise of cryptocurrencies is that money and payments will be universally available - to anyone, no matter where they are in the world.
Decentralized Finance (DeFi) or Open Finance takes this promise a step further. Imagine a global, open alternative to every financial service you use today - savings, loans, trading, insurance and more - accessible to anyone in the world with a smartphone and internet connection.
This is now possible in blockchain smart contracts, cryptocurrencies like Ethereum. "Smart contracts" are programs that run on the blockchain and can be executed automatically when certain conditions are met. These smart contracts enable developers to build much more advanced functionality than just sending and receiving cryptocurrency. These programs are what we now call decentralized applications, or dapps.
You can think of a dapp as an application that is built on decentralized technology rather than built and controlled by one centralized entity or company.
The promise of cryptocurrencies is that money and payments will be universally available - to anyone, no matter where they are in the world.
Decentralized Finance (DeFi) or Open Finance takes this promise a step further. Imagine a global, open alternative to every financial service you use today - savings, loans, trading, insurance and more - accessible to anyone in the world with a smartphone and internet connection.
This is now possible in blockchain smart contracts, cryptocurrencies like Ethereum. "Smart contracts" are programs that run on the blockchain and can be executed automatically when certain conditions are met. These smart contracts enable developers to build much more advanced functionality than just sending and receiving cryptocurrency. These programs are what we now call decentralized applications, or dapps.
You can think of a dapp as an application that is built on decentralized technology rather than built and controlled by one centralized entity or company.
Machine translated
Machine translated