What is DeFi?

A Brief History

Decentralized Finance (or DeFi) is a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments.

DeFi  smart contracts on blockchains, the most common being Ethereum where applications known as DApps perform financial functions on digital ledgers called blockchains, a technology that was first utilized by Bitcoin but has since evolved to be much more.

This concept of an open blockchain means that everything is public and everything is transparent including the fees. Which means that traditional banking business as usual will be completely disrupted, with the customer and the speed of innovation being the big winners.

It’s estimated the Centralized Finance sector currently extracts over $9.1 trillion annually from the global economy, which is more money than the utilities, communication services, and real estate sectors combined.

That’s at least $9 Trillion Dollars just waiting to be disrupted and redistributed on a mass scale.

DeFi and the blockchain will completely revolutionise the way we as consumers understand and interact with their money.



FAQ

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