$BTC Decentralized Finance (#DeFi)
◇ I've noticed that a lot of tech newbies don't really understand what DeFi is and why it matters.
● In this series, I will talk about everything you need to know about DeFi.
□ In this series on DeFi, we will cover the following topics:
◇ What is Decentralized Finance (DeFi)?
◇ Components of Decentralized Finance
◇ Key Features of DeFi
◇ Benefits of Decentralized Finance
◇ What does the future hold for decentralized finance?
○ What is Decentralized Finance (DeFi)?
◆ Decentralized finance is an emerging financial technology that relies on secure, distributed ledgers similar to those used by cryptocurrencies.
◇ It is part of Web3, and allows participants to conduct financial transactions directly with others.
● Components of Decentralized Finance (DeFi)
1. Decentralized Exchanges (DEX)
2. Smart contracts
3. Blockchain technology
4. Decentralized Applications (dApps)
(◇)Key Features of Decentralized Finance (DeFi)
1. No restrictions: Anyone with an internet connection and a digital wallet can access DeFi services, regardless of geographic location or amount of funds.
2. Transparency: All transactions are recorded on the blockchain, making them publicly available.
3. Self-control: The most important feature of DeFi is that users retain complete control over their assets and personal data (private keys).
○ Benefits of Decentralized Finance (DeFi)
1. Programming: DeFi applications rely on smart contracts that are used to automatically run, execute, and create new financial instruments and digital assets.
2. Reduce costs and increase efficiency: Decentralized finance offers lower costs compared to traditional finance.
3. Non-custodial Self-Control: Unlike traditional finance, where banks hold your money, DeFi gives users full ownership of their assets through non-custodial wallets like MetaMask.
Disclaimer: Contains third party opinions. Not financial advice. May contain sponsored content. See terms and conditions.
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