A Thing You Must Know About DeFi
DeFi is a collective term for financial products and services available to anyone who can use Ethereum, Everyone with an Internet connection. With DeFi, markets are always open and there are no central authorities to block payments or deny you access to anything. Services that were previously slow and prone to human error are now automated and secure as they are driven by code that anyone can view and test.
There is a booming crypto economy where you can lend, borrow, go long / short, earn interest, and more. Crypto-savvy Argentines have used DeFi to avoid inflation. Companies have started streaming their employees’ salaries in real time. Some people have even taken out and paid off millions of dollars in loans without any identity.
DeFi is an open and global financial system that was designed for the Internet age – an alternative to opaque, tightly controlled and held infrastructures and processes that are several decades old. This gives you control and transparency of your money. This gives you access to global markets and alternatives to your local currency or banking options. defi products open up financial services to anyone with an internet connection, and they are largely owned and operated by their users. To date, tens of billions of dollars worth of cryptocurrencies have passed through DeFi applications, and they are growing every day.
Compare Traditional Finance to DeFi
- Financial services can prevent you from receiving money.
- Some people are not given access to open a bank account or use financial services.
- Lack of access to financial services can affect people’s employment opportunities.
- Hidden Financial Services Fees are your personal information.
- Governments and centralized institutions can close markets at will.
- Trading hours are often limited to business hours in a specific time zone.
- Financial services have a premium because intermediaries need a share.
- Transfer of funds may take several days due to internal human processes.
One of the best ways to see the potential of DeFi is to understand the challenges that exist today.