DeFi…
Decentralized Finance, DeFi for short, is a term used to describe the decentralized services and products made possible with the help of decentralized technology.
There is a high possibility you already know what Defi is and its uses. Briefly, the idea behind it is to take banks and governments and let individuals control their finances.
Decentralized Finance, or DeFi, is an emerging software and business development field focused on shifting traditional financial services to public blockchain technology.
Decentralized finance is an upgrade of traditional financial systems, which are centralized and as a result of this centralization, prevents a lot of individuals from accessing financial services and contributing to the global economy.
Example of DeFi includes lending services, DecentralizedExchanges, marketplaces, stablecoins, derivative platforms, and much more.
Stable coins are not really a DeFi function but they play an important role in Decentralised Finance applications which are more accessible to every individual by having a stable store of value since prices of cryptocurrencies are extremely volatile.
In addition to it there are several decentralized Stablecoins such as DAI.
Some Major Functions of DeFi…
1) Lending and Borrowing
2) Lottery
3) Derivatives
4) Payments
5) Insurance
The main concept behind the DeFi is Smart Contracts. These are a small set of code stored on the blockchain that works without the need for further human decision making: all of the logic is pre-programmed and executes if the condition satisfies.
This is why DeFi is the rising in the blockchain platforms like Ethereum. An entire ecosystem of Initial Coin Offerings (ICOs), securities, trading markets, and wealth transfer has exploded onto the financial scene.
I hope this article demonstrates the type of thinking that goes into Ethereum smart contract development, Intro to DeFi, and Solidity in general.
Reach out to me @
Shubham Dusane
DeFi-Blockchain Developer
sdusane4@gmail.com
