Decentralized Finance(DeFi) opens up lots of possibilities in the world of finance.
In traditional finance, there’s always a central authority that controls the flow of money, which are governments and banks.
On the other hand, DeFi is an Open Internet-native Global Financial system, which offers financial services without relying on any intermediaries.
By using self-executable Smart contacts and Blockchains, which makes the whole process trustless and less fraud-prone as you don’t need to trust anyone with your money.
Plus smart contacts are open-sourced, so you can yourself verify the code. As crypto community follows “Don’t trust verify” philosophy.
You can almost do every traditional financial service in DeFi, but currently, trading, lending, and yield farming are the most popular services in DeFi.
DeFi projects also use a layered architecture that is highly composable and can be used as a building block for another project.
As of February 2022, the value of assets used in decentralized finance amounted to $200 billion.
Uniswap, Aave, and Serum are some of the well-known defi projects.
I’m also developing KitePay, which will enable various on-chain payment services on Solana.
I see DeFi as a great alternative to the traditional finance system, and it’s great as customers will get another option to choose from.
Check out my video on DeFi: https://youtube.com/shorts/5NwDmGuslGs
