DeFi is now one of the hottest topics in the crypto space and fast-growing sectors in the crypto industry. In this guide lets, we can look at What is DeFi and how it works?
Table of the content:
- What is Decentralized Finance(DeFi)?
- Role of Smart contract in Defi
- What are the Advantages of DeFi?
- Difference between DeFi and Fintech
- What is DeFi Apps
- Best use cases for DeFi
What is Decentralized Finance(DeFi)?
Decentralized Finance is commonly known as DeFi built on a top blockchain network especially in Ethereum. Ethereum is an open-source global, decentralized blockchain platform so that’s why only the Ethereum blockchain platform is the primary choice for the DeFi application.
DeFi is an open-source and transparent financial service ecosystem it can be suitable for everyone and operate without any central authority. Users can easily interact with this ecosystem through peer-to-peer (P2P) and decentralized applications (dapps).
“DeFi is offering you to control of your own assets”
DeFi is also known as open finance platform, it covers end to end financial services which include lending, borrowing, and trading under decentralized infrastructure such as smart contracts and immutable blockchain technology. DeFi can be combined, modified, and integrated according to your needs.
Explore here — 5 interesting Facts about DeFi