Defi stands for Decentralized finance. DeFi (decentralized Finance) is a technology that changes the traditional financial system drastically.
So What Is Decentralized Finance?
Defi stands for Decentralized finance. DeFi (decentralized Finance) is a technology that changes the traditional financial system drastically. Defi (Decentralized Finance) has the potential to significantly accelerate various services like exchanging funds, trading, and lending. With DeFi protocols, you are your own bank. Lending platforms like MakerDAO and Compound facilitate crypto lending by matching borrowers with lenders.
A curious thing about Decentralized finance technologies is that they’re focused on recreating the entire financial ecosystem rather than just building software for separate services.
Cefi (Centralized Finance)
Our traditional finance system is Cefi (centralized finance system) which essentially relates to conventional banks. In a Centralized financial system in which there are important role middlemen. Middlemen mean from our banks, because if we have to do any transaction of money in the bank, then it is done through the intermediary of someone.
Key Points: That makes Defi Popular Now
A. Defi eliminates fees that banks or other centralized institutions charge for their services.
B. In Defi You hold your money in a secure digital wallet ( instead of keeping in the bank)
C. There are no KYC issues. It is very easy to access.
D. DeFi reduces transaction time. Transfer funds in seconds Increased access to many financial services.
There are several DeFi development companies in India that are working on interesting projects in this space. One such DeFi development company in India is LBM solutions, which is focused on building decentralized applications (dapps) on various blockchain networks.
