What is DeFi ?

What is DeFi ? Here is a quick but complete definition of what decentralized finance is, DeFi.

What is DeFi ?

What is DeFi? DeFi (for “Decentralized Finance”) is a movement that aims to create alternatives to traditional finance using blockchain and smart contract technologies. This ecosystem aims to create financial systems that are open, transparent, and accessible to everyone, regardless of their geographic or financial location.

What is DeFi?

DeFi, definition:

DeFi projects often include lending platforms, crypto-currency exchange protocols, payment systems and security protocols. These projects are often built on the Ethereum blockchain, as it offers a wide range of smart contract features that enable complex financial systems. Moreover, we invite you to discover the DeFi news, as you will regularly find new and interesting projects.

The term “decentralized finance” was popularized in the 2010s with the appearance of the first cryptocurrency, Bitcoin, which was launched in 2009. Since then, many decentralized finance projects have emerged, each aiming to provide financial services in a more open, transparent and secure way using blockchain technology.

This ecosystem is vast, with many different types of companies operating, for example, in trading, as a decentralized trading platform, or in travel, gaming, sports, real estate and many other areas.

Here’s an overview of what these projects may include:

  • Decentralized lending and credit platforms that allow users to lend or borrow money without going through a traditional financial institution.
  • Price stabilization protocols that fix the price of certain cryptocurrencies and minimize fluctuations in their value.
  • Token lending and borrowing platforms that allow users to lend or borrow tokens (for example, stablecoin tokens) using blockchain technology.
  • Decentralized trading platforms that allow users to trade directly with each other, without going through a centralized intermediary.
  • Decentralized payment platforms that allow users to send and receive payments using blockchain technology.

It should be noted that this list is not exhaustive and that new applications of decentralized finance continue to emerge.

To conclude, it can be said that DeFi has grown rapidly in recent years, especially in 2020, due to the growing interest in crypto-currencies and the rising prices of some of them. However, DeFi remains a young and rapidly evolving industry, and there are still many challenges to ensuring the security and stability of these decentralized financial systems.

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