🎤DeFi

Ecosystem aims to disintermediate financial services and make them more accessible

DeFi platforms allow investors, lenders, borrowers, sellers, and buyers to trade and interact with each other directly. It is an interconnected, open-source - also known as open source - system, whose applications are stored inside the blockchain. DeFi works by means of the so-called smart contracts, programmable digital smart contracts that allow the automatic execution of a previously defined code.

The DeFi ecosystem is still incipient, but there are great expectations regarding the changes it can cause in the economy as a whole. In addition to directly contributing to the creation of disruptive solutions in the sector, platforms dedicated to decentralized finance offer solutions to a number of problems in the financial market, such as centralization of control, inefficiency, bureaucracy, and poor transparency.
Like cryptocurrencies, DeFi platforms have a global reach and operate on a peer-to-peer model, meaning that trades are made directly between two people. In addition, they are pseudonymized and open to everyone. Their operating cost is greatly reduced when compared to traditional banks, since they do not need to spend money on offices, salaries, and bureaucracy.

Last updated 2 years ago