Posted by Decentralized finance, also known as DeFi, is a sector in the entire cryptocurrency and blockchain industry that focuses on providing a decentralized version of mainstream financial opportunities.
What is DeFi
In the mainstream world, financial institutions provide customers with opportunities for cash storage and loans. However, these products are managed by centralized entities.
With the help of distributed ledger technology or DLT, DeFi solutions provide many of the same opportunities, but they are controlled by a large number of participants who follow the rules enforced by smart contracts.
DeFi solutions also often provide greater flexibility in users’ ability to store and control their own assets. In addition, compared with transactions on centralized digital asset platforms, decentralized exchanges or DEXs further decentralize digital asset transactions.