DeFi - Decentralised finance, is a movement facilitated by the rise of crypto-currencies.
I'm sure you all understand crypto-currencies, but in case you don't, they are digital currency that uses cryptography to secure transactions. Importantly, they do not rely on any central authority, such as the Bank of England or the Fed, to be maintained, but instead use a 'Decentralised' system to record, issue, and execute transactions, most commonly using blockchain technology.
DeFi is a direct challenge to traditional financial systems, where central banks have hierarchical control and autonomy over your assets. As Ethereum itself defines, DeFi is “ an open and global financial system built for the internet age – an alternative to a system that's opaque, tightly controlled, and held together by decades-old infrastructure and processes.”
So how does it compare to traditional finance?
Please get in touch if you would like to learn more about DeFi.
Commenti