Decentralized Finance

The crypto world has been very exciting to watch over the past couple of years. The rise and fall of bitcoin was one of the biggest events in this industry. Now that we have reached the top, we need to find a way to keep the momentum going. This is where decentralized finance comes into play.

What is Decentralized Finance?

Decentralized finance (or DeFi) is a term used to describe a new type of finance that is based on decentralized applications. These apps are developed by using smart contracts and decentralized networks such as Ethereum or NEO. They allow people to perform financial transactions without the involvement of a central bank.

There are many advantages to using decentralized finance. One of them is the fact that it is not controlled by any single entity. Another advantage is the fact that these apps do not require a third party to execute the transaction. It is possible for users to complete a transaction without having to go through an intermediary.

There are also some disadvantages to this new type of finance. The first one is the fact that there is no central bank that can regulate the price of assets. There are also security risks involved with this type of finance.

How Does It Work?

Decentralization is the main concept behind decentralized finance. It allows people to exchange value without the involvement of a central authority. A centralized entity is necessary for this type of finance because it allows people to transfer funds from one account to another.

When a user wants to transfer funds, they must use a wallet. The wallet will allow them to store their digital assets and convert them to fiat money. Once the user transfers the funds, they will be sent to the recipient’s wallet. This process is called off chain. The funds will then be converted back to digital assets and stored in the recipient’s wallet. This is done on chain.

What Are Some Examples Of Decentralized Finance Apps?

There are many different types of decentralized finance apps. Here are just a few examples:

• • Augur
• • Compound
• • Dharma
• • Maker
• • dYdX
• • Gnosis
• • Iconomi
• • Kyber Network
• • Lendingblock
• • Nuo
• • Origin Protocol
• • OpenLaw
• • Request Network
• • Rentberry
• • SALT
• • Status
• • Switcheo
• • Uniswap
• • WePower
• • Wanchain
• • Waves
• • Wagerr

These are just a few examples of decentralized finance apps. You can find more information about these apps at decentralizedfinance.org.

The post Decentralized Finance first appeared on Crypto World.

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