What is DeFi ❓ What Do You Need To Know About Decentralized Finance?

[EdmonLeung]

Ultimately, the Decentralized Finance (DeFi) blockchain-powered space is still nascent, but provides a compelling value proposition by which individuals and institutions make use of broader access to financial applications without the need for a trusted intermediary. This development will benefit especially people who have not previously had access to such financial services. However, DeFi is offering a full capital market. Thought in a tiny format at this point in time. But it’s growing

What is decentralized finance and who is it for?

On the Ethereum blockchain, the most popular programmable blockchain in the world, almost all DeFi applications are built. Ethereum is a blockchain network that maintains a digital value shared ledger. The members who compose the network monitor the issuance of ether (ETH), the native cryptocurrency of the network, in a decentralized manner, rather than a central authority.

Developers are able to program Ethereum applications that can create, store, and manage digital assets on the blockchain, also called tokens. These are known as smart contracts or decentralized applications (DApps). They are the Ethereum blockchain’s contracts or agreements. Or rather, applications or scripts running on the Ethereum network only as programmed. Without the need for a middle man, you can build complex irreversible agreements.

The rise of DeFi

In fact, many serious teams have embraced and developed the underlying technology in order to achieve real results during the apparent calm. The advent of Decentralized Finance (DeFi) applications, which will likely drive the next wave of disruption, is one of the main innovations arising from this era.

    Interoperability and Open Source: when designing their projects, DeFi leaders take interoperability into account. It helps to strengthen all of our projects as a whole’s compounding impact. Open sourcing helps us achieve this goal by enabling us to collectively understand how all our products can be technically woven together.
    Accessibility and Financial Inclusion: DeFi leaders aim to create a financial infrastructure that can be used by anyone with an internet connection. DeFi’s dream is a world in which meaning flows freely, regardless of one’s position.
    Financial transparency: DeFi members believe that financial services should not be structured in secret silos, but that market-level data should be available to all stakeholders while protecting the privacy of individuals.


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What is your thought about Defi ?

[fuer44]

for transparency, I think it will be good for the future of humanity, but decentralization in the financial system can also have adverse effects. because the financial system should be managed by one or centralized, and if the system is decentralized and allows everyone to manage it themselves, I think it is not good for the country's finances.

[RooseveltOah]

The growth of most Defi platforms have flattened a little, they’re still growth but nothing exponential, also there are concerns that when ETH’s price drops, there’s going to be a cascading effect that bring the platforms down.

On the other hand some centralized lending platforms including BlockFi, Genesis and CoinList seem to be growing much faster, main reason being institution money usually have to go through centralized platforms, for your reference

[asriloni]

for transparency, I think it will be good for the future of humanity, but decentralization in the financial system can also have adverse effects. because the financial system should be managed by one or centralized, and if the system is decentralized and allows everyone to manage it themselves, I think it is not good for the country's finances.

But for the exchange site and DeFi becomes the main answer to give the more protection to the trader's fund. You can see so many hacked cases that happened with the various exchange site and that has already proven if the exchange site needs something difference. I believe if DeFi can be implemented into the various ways but that still need a lot of research to dig about what kind of system that will be suitable to be implemented by DeFi.
Transparency is also a good point from DeFi too.
I thought that if DeFi will be very suitable to be used on the private blockchain implementation.

[Drahzar]

Decentralized finance allows users to control their financial assets without the involvement of government institutions or banks. DeFi is based on blockchain technology, mainly Ethereum.
DeFi is a relatively new, so there are only a few good cases of usage so far - mostly for ICOs now, but also can be used for traditional financial transactions such as asset management, lending and insurance.

[irixo10]

Decentralized Finance (Defi) is another way to show that the crypto space is filled with a lot of potentials and possibilities, thus contributing to the growth of the crypto space in general. Also, currently Defi can be considered to be the latest trend in the crypto space whose emergence brought a lot of attention both to some decentralized exchanges like Uniswap and some blockchains like Ethereum and Tron, although majority of them are all based on the Ethereum blockchain. Furthermore, I think DeFi have a good concept but too much hype lead many people into not seeing the true worth of it, and also this hype lead to the other scam Defi projects. Nevertheless, overlooking the shortcomings, scam Defi projects etc, and focusing on the potentials, the good DeFi projects if properly worked on can achieve their aims of bringing about a Decentralized Finance ecosystem.

[bitcon]

DeFi is the dream of finance without financiers. All DeFi apps work differently, but the general approach is this: people can connect a cryptocurrency exchange account to the DeFi app, and then borrow some of their coins or borrow against collateral.

[Tushar Ramani]

The instant swap, fresh loans and liquidity features are something that makes DeFi space really popular.

[retalids]

Decentralized finance allows users to control their financial assets without the involvement of government institutions or banks. DeFi is based on blockchain technology, mainly Ethereum.
DeFi is a relatively new, so there are only a few good cases of usage so far - mostly for ICOs now, but also can be used for traditional financial transactions such as asset management, lending and insurance.

yes, and besides defi exchanges  are also trendy and have huge trading volumes. reccomend u to research this subj also

[Indiana1990]

Decentralized finance allows users to control their financial assets without the involvement of government institutions or banks. DeFi is based on blockchain technology, mainly Ethereum.
DeFi is a relatively new, so there are only a few good cases of usage so far - mostly for ICOs now, but also can be used for traditional financial transactions such as asset management, lending and insurance.

yes, and besides defi exchanges  are also trendy and have huge trading volumes. reccomend u to research this subj also

i'm always looking for actual dex projects - btw just read about interesting one, xsigma, they based on curve exchange and have worthy financial model

[Ayapp]

Defi still has a very long way to go, although the instant swap, the fresh loans means it will the well and widely accepted, but there are still lots to do and a very long way to go. Government not regulating financial institutions will be a thing that a lot of people not vast in crypto knowledge will be against.

[Phoenix_PROG]

Ninety percent of DeFi projects are introduced by bad teams and con artists, they did nothing but ruin everything that makes DeFi a decentralized platform, DeFi isn't perfect yet because of these bad actors that don't know what they are doing, the problem of DeFi projects presently is unprofessional developers and teams