Crypto What is Decentralized Finance?

Jasmine

VIP Contributor
Before I explain what exactly is DeFi or Decentralized Finance, you need to understand Centralized Finance. Today, our entire financial system is centralized, all financial services rely on a central authority. Centralized financial system means someone is at the helm of the financial system, for instance banks, stock market, insurance companies all are controlled by government, institutions, or individuals. These centralized financial systems have risk such s mismanagement, corruption, fraud, etc.

DeFi or Decentralized Finance is a financial system that uses the blockchain technology to deliver financial services such as banking, insurance, investment, etc. Unlike Centralized Finance, DeFi is not controlled by central authority, Decentralized Finance is not controlled by government, individuals or institutions. Decentralized Finance is community controlled.

Bitcoin was created as the first decentralized money for decentralized financial system.
 

btaliat

VIP Contributor
Thanks for the innovative that the creators cryptocurrencies has. They are the ones that remove us from the shackle of governemnt. How on earth will someone be controlling the money I spend and how I spend it. This is the greatest reason why this government always fight hard over the crypto.
 

Mika

VIP Contributor
The term DeFi or Decentralized Finance became popular with the popularity of cryptocurrencies. We live in a world where everything is centralized, but in 2009 something changed. An anonymous man created Bitcoin, decentralized money, and move the world towards Decentralized Finance. However, this is yet to be accepted in the main stream market.
 
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