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.
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.